Choosing savings accounts that work for you

Everyone knows they should start a savings account, but the first step is sometimes the most difficult.

09:25 31 August 2013

We all know that it’s important to establish a savings account, but sometimes choosing the right one is a little more complex than we might imagine. Here are a few suggestions to help you decide which savings accounts will work best for you and your plans for the future. Here are a few things to keep in mind when contemplating your finances.

• Determine what your goals are before you open savings accounts. If you have a short-term goal you may not need to pay as much attention to interest rates, account fees, or the type of account. Long-term goals require more caution when choosing accounts because there often isn’t time to make up for improper planning when the time comes to see if the goal was met.

 

• When considering savings accounts, you’ll want to make sure to do enough research. Compare a few different banks for interest rates as well as any applicable fees. Some banks may allow you to open an account with less money than another bank might. There also can be differences in the types and amounts of fees charged under certain circumstances.

 

• Whenever possible try to get an Independent Savings Account so that your money earns more interest than if you were to invest only in a regular savings account. There are different types of ISAs available to suit both long-term and short term savings goals.

 

• Once you establish the savings accounts that you want, be sure to deposit on a fairly regular schedule to ensure that you get the maximum benefits. ISAs only allow a certain amount to be deposited annually, so if you want to deposit more you may need to make up for it by having a regular savings account as well.