Financial Advisor

Make the best out of your savings account

Making your money work for you
In today’s tough economic climate, making your savings work for you is important. You cannot afford to leave any cash languishing in your checking account. If you have any spare cash, over and above your cost of living, you should put in a savings account.

What kind of savings account should you choose?
There are several different products on the market, and the best one you as an individual depend on how readily you may need to access any savings to make withdrawals. You obviously want to maximize the amount of interest that the bank pay you, and in the difficult financial situation today, the interest rates being offered on any savings account are at their lowest ebb for many years.

Longer notice periods = higher interest

The shorter the period of notice you are prepared to offer your bank on accessing your savings, the lower the interest rate they will be prepared to offer you. So for example, if you want immediate access to your savings fund, you are likely to get no interest and may be best leaving the money in your checking account. In actual fact, if you shop around, you will find banks who will offer you at least a nominal rate of interest on any saving account, just by way of trying to promote savings of any degree. But the longer the period of notice you are prepared to forgo before you are able to access your savings, the higher the interest rate your bank will prepared to offer you within their standard framework.

Mel C writes about a variety of subjects including saving accounts and high interest savings accounts

Make the best out of your savings account / Author: Mel C