|
|
Instant Access Savings
When saving, the key is to get the groundwork right. Making sure you are debt-free is the first thing to do, and once that is done it is advisable to set up a cash ISA (which will deliver tax-free savings) or a savings account (which requires you to make monthly payments in exchange for a high interest rate).
Savings accounts act simply as a resting place for your money, they are less versatile than a normal current account - no cheque-books or cash-cards - but they do offer a much more attractive rate. Those selling savings accounts have a number of techniques to entice you into buying, such as high introductory interest rates that drop dramatically a few months or years later, and it is also important to check whether the rate quoted is Gross or AER.
As a person's savings can be built up over the course of decades, it is vital to make sure whoever you are saving with has FSA (Financial Services Authority) registration so that, in the unlikely event of the bank's collapse, your money is at least partially covered.
Some of the best deals to be had are being offered by internet-based providers at the moment, with rates hovering around the 5% mark, but there are often exceptions on some of these.
If the idea of using an Internet bank doesn't interest you, then their high street counterparts do have savings accounts but the rate will not be so high - some building societies may offer better deals to certain individuals.
One final thought: interest rates fluctuate, so if yours suddenly starts dropping it may be time to switch to another provider.
|
|
|
