Some of the best savings rates are in the fixed term accounts. These penalise you for taking money out of the account during the term but will give you the best return during it.
If you know you won’t need the money for a set period, such as you’re saving for retirement, consider one of these accounts. You’ll need to check how long the interest rates last for though to make sure it’s a favourable one.
These work similar to the fixed rate accounts; you only have access to the money after a certain period of time.
The problem is that very few have interest rates attached to them. So what’s the benefit? Your money is safe while in the premium bonds. There is little risk of having to spend the money due to the banks getting into trouble.
The high street is full of savings schemes. They can allow you to collect points or you may be able to save up over a period of time ready for your Christmas shopping.
Many of these schemes can be used throughout the year so you can save up for one thing in particular. It’s better than saving money since you know the value will go on the exact item you need it to.
Plan ahead with your savings. Sit down and work out how much you need for each area that you want to save. This means that you know how much you need to save each month.
Keep a track of all this so you can quickly check it over and mark anything off when you’ve reached your goal.
Don’t have all your money in one account. Create separate savings accounts for all your different needs.
This helps to avoid touching one pot of money for something else. Of course, you will still need some will power but at least this helps.
Interest rates on a child’s savings account is usually much better than an adults. This is because you can’t have access to the account until your child reaches a certain age.
When saving up for your child’s future, use that to your advantage. Put in a set amount each month but search for the best rate before you open an account.
When you can, switch your accounts so you always have the best interest rate. This can usually be done after a year with most fixed term accounts and more often with others.
You’ll always have the highest rate so your money will go much further.