Before
opening up a savings account you need to know the reason
for putting the amount aside- whether it’s for a holiday,
further studies,
marriage etc. Once you’ve decided what you’re
plans are, then consider whether you’ll be able to
save regularly, when you’ll require the money, and
do you need quick access to the money.
At
present, there are a number of banks and building
societies where you can park your funds, but they will
not bring you good returns. Some of them do pay a bonus
if you don’t make a withdrawal for a certain period,
but if you do so, your interest rate is affected. There
are others who specify a minimum amount that you need to
keep in the account for it to remain alive.
If you’re contemplating on opening a savings account, here are some of
the options available:
Notice
accounts – In notice account you cannot
withdraw the money before time, which is specified during
the opening of the account, as you stand to lose interest
for the number days. The advantage of opening a notice
account is that it gives better interest
rate than the others. So also, the more number of
notices with you, the better interest rate you’ll
get.
Postal accounts – Since it
is done through the post, it enables the provider
to offer higher rate of interest. Most postal accounts
use first class post, but then at times you do have
to rely on the efficiency of the post.
Regular savings accounts – If you’re
able to save a set amount each month then this account is ideal
for you. Though it allows only one or two withdrawals a year,
and a handful of them offer bonus.
Fixed rate accounts – Here you get an
access to your money deposited plus a fixed rate interest after
a period of time. In fixed rate account, interest rate can
increase or fall and you’re only affected once the fixed
period is over.
|
