Financial Advisor

High Interest Savings Accounts

Some savings accounts give a much higher rate of interest than others. High interest savings accounts allow you to make your money work for you not only by offering high interest, but allowing you to take advantage of compounding interest. Where the interest is calculated daily and credited monthly you then get interest paid on your interest each month. And while such high interest savings account as term deposits sound good, they don’t allow you to take advantage of compounding interest, because the interest is usually only paid in at the end of the term – be that three months or three years.

Why do we want a high interest savings account? It motivates us to save even more if we see a reasonable amount of interest added at the end of each month. It encourages our children to become savers rather than spenders if they can see they are getting a regular amount of interest – that is worth having.

Rather than just saving the money we have made by the sweat of our brows, it puts that money to work, making more money. That’s the easy way to get ahead. When people start thinking in terms of making their money work harder rather than just idling away in a low interest savings account, then they become true investors.

Mel C writes about a variety of subjects including online savings accounts, high interest savings accounts and term deposit accounts.

High Interest Savings Accounts / Author: Mel C