The best savings know how
When it comes to choosing a savings account, unless you are a bank manager or financial planning expert, it is unlikely you will know all the ins and outs of this often elusive subject. For something that plays an integral part in many of our lives and that is so important to future financial planning, it seems to be something a lot of us know little or even nothing about.
Follow our guide to how you too can choose the best saving options for your money:
Easy access savings
Sometimes life throws up unexpected surprises. At times like this, it is very useful to be have access to your savings. Although it is more difficult to get the higher interest on these types of account, having the comfort of being able to access your money whenever you want is something you cannot put a price on. Also known as instant access accounts, to find the best rates you may need to shop around to find the best deals.
Fixed term account:
This type of account usually provides the best savings rates as money is kept in a fixed account for a certain period of time. If you need to withdraw money at any time, you may be able to do so but a fee may be charged. Also, if you do withdraw your money you may lose all the interest raised. The important thing is probably not to invest any money you may need to access anything in the near future or in emergency situations.
Notice accounts:
Although you need to give your bank some 'notice' when you want to withdraw money, the length of notice period will vary depending on the type of restrictions on your account. There will be higher interest rates on this type of saving but it may not suit someone who needs instant access to their money from time to time.
Accounts for children and the over 50s
There are also some great saving options for children under the age of 18 and adults over the age of 50. Children will learn about the importance of saving and the account will usually be an instant access account. Those saving in their 50s will also see some great benefits that may be put to good use in the years leading up to retirement.
Cash ISAs
These accounts are very popular as they allow you to invest up to £5,320 each year and with the interest you earn, you do not have to pay any taxes. Like other accounts you can get instant access or fixed ISAs. You are also able to get Stocks and Shares ISAs where you can invest a further £5,320 in bonds and shares. The most you can invest in both types of ISA in total is £10,680.
Getting in touch with highly trained and knowledgeable will be the first step in getting the very most out of your savings. There is no point in keeping money in a lower interest account if you will not need access to it for a few years. By getting in touch with experts, explaining the type of account you need to suit your lifestyle and financial requirements, they will be able to help steer you in the right direction.