Make sure the savings account you have is best

Everyone has their own unique needs when it comes to saving money.

09:48 14 September 2013

Choosing the right savings account for you can create a significant difference in the amount you receive from your initial investment. It doesn’t make sense to choose an account that won’t meet your needs or help you reach your goals. In order to make the best decision you need to know what you are saving for, how quickly you want to reach your goal, and whether or not you have the means to do so.

For short term goals here are a few types of savings accounts to consider:

• Cash Independent Savings Account—these are good choices for those who have a sizable amount of money to deposit into an account all at once. The interest rates are typically higher and putting a large amount into an account over a period of time can provide extra money.

 

• Fixed-rate bonds—depending on the amount of time you have to reach your financial goal, this could be a good option since it acts similarly to a savings account, but won’t allow you access to the money during the length of the bond. Again, you would need to have a sizable amount of money to deposit in order for it to do much good.

 

• Regular Savings Account—this type of account usually has low interest, but if you don’t have a lot of money to begin with you may need to set up one of these accounts. At the very least, it will be a place for you to store you money separately from a main cheque account.

For a long-term savings account consider these options:

• Stocks and Shares Savings Account—there is great potential with these accounts to obtain a higher level return rate, but the longer term is necessary to offset the possible risks of making such investments.

 

• Property—if you have enough money, property acts like a savings account, increasing in value.