The following is a sponsored post.
For most people the last few years have not been easy and as a result, how we treat our money is
more important than ever before. Many people have lost confidence in what could be perceived as
the riskier option of investing, so now the question is ‘what do we do with our savings?’ The answer
for lots of people seems to lie in going back to basics and opting for good old-fashioned savings
accounts. If this is the route you choose the next step is deciding on the ‘right’ savings account.
Check your options
There are now so many out there it can be difficult to know which way to turn and which bank or
building society to trust with your hard earned cash. Each one is ‘tailored’ for a specific plan or
income and claims to be a high interest savings account. However, just because on the surface, it
seems to pay the highest rate of interest, it doesn’t necessarily follow that it’s the best option. The
clever saver must look beyond the big fat rate and consider their specific situation. Your account
may well offer 4% but often these higher rates are for those who can specifically save weekly or
monthly and so this account may not be for you.
Check the rate
It is important to make sure that the rate you see advertised in big bold letters is the rate you will
actually be receiving, as sometimes the advertised rate includes the money you might make from
the ‘introductory bonus’. If you do choose an account with a starting bonus it’s worth bearing in
mind that when the bonus ends you may end up on a pretty low rate.
Therefore you will either find yourself having to move to yet another savings account or worse still,
you forget when the bonus term ends and your hard earned cash, sits languishing in an extremely
low paying account, washing away any bonus you may have benefited for. Ask yourself if you will
take the time to monitor when the bonus ends and take action and if the answer is no, perhaps
looking at accounts with great rates but with bonuses is the better option for you.
Check the small print
Always check the small print on these accounts and find out what the restrictions are. For example
some terms and conditions may stipulate that you earn no interest at all for the month when you
take money out of your account. There may also be limits on the number of times you can take
money out each year. If you do need to get at your money now, then you do have options in easy
access savings accounts which will allow you to save a chunk of money which gives access after a
certain amount of time (this ensures that you will accumulate interest after a period of time).
There are lots of options out there but it is important to take your own personal financial situation
and weekly or monthly spending into account when choosing.
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