|Saving On Your Savings Accounts
It’s tempting to think that saving money is easy – all you need to do is take some cash out of your checking account and choose from the savings accounts available to put it in one of those instead.
But that’s the problem. There are so many savings accounts around that it can be hard to know where you should put your money to get the best results. That’s why you need to compare savings accounts to make sure you’re making your money work as hard as possible for you, while still being available when you need it.
Here are some pointers to remember when you are trying to find the best savings accounts for you.
What are you saving for?
This is an important question. Do you have a particular goal in mind? Are you saving for a short, medium, or long term goal? Are you able to save a regular amount each month, or are you simply going to pay in varying amounts of money as and when you can?
The best savings accounts to consider will depend on knowing these answers. For example, there is no point looking at savings accounts which demand that you pay in a regular amount every month if you know you might not be able to do that on some occasions.
How long can you leave the money tied up for?
When you compare savings accounts, always make sure you read the fine print. Some of the higher interest savings accounts demand that you don’t make any withdrawals for a fixed amount of time.
If you know that you might not be able to stick to this, then you’ll need to look at different options. Some savings accounts let you make one or two withdrawals in a year without penalty, but if you go over this maximum you may be charged or lose a certain amount of interest, so be sure you can meet the requirements.
Are you using your tax free savings allowances?
401ks are the most popular way of saving without paying any tax. Are you using your allowance? If not, you could be missing out on some of the best savings accounts on the market.
Check with different banks and building societies to see what they offer in terms of interest and conditions, and make sure the savings accounts you are looking at will fit your needs before you open one. Don’t be lured by the prospect of tax free interest if the account won’t fit your needs.
What kind of interest rate can you get?
It goes without saying that the best savings accounts usually pay a higher rate of interest than some others. When you compare savings accounts, make sure you balance out the flexibility you are looking for with the need to earn as much interest as possible on your account.
While the majority of savings accounts information is fairly simple and straightforward to read, don’t forget to read the small print to make sure the details fit your needs perfectly.
Choosing the best savings accounts is a simple matter of doing your homework first. Once you know exactly what you want from your account and how much you will be able to contribute to it, you’ll be able to compare savings accounts to find the one that is right for you.
Check out our savings accounts