Positive signs to start a savings account

Find out what factors to compare when starting a savings account.

09:29 09 May 2013

Honda just had to organize the release of around 800 workers, so quite a few people will be dipping into their savings accounts for a little while.

 

A job fair has been orchestrated to assist those who recently became unemployed. Hopefully everyone will be able to find new jobs quickly, but in the meantime hopefully savings accounts will provide the necessary funds to get through the difficult times ahead.

 

If you haven’t set up your own savings account, now is a good time to consider it. Maximize the results from your savings account:

 

• Minimum deposits—check for institutions that either doesn’t require a monthly minimum deposit or a minimum which meets your needs.

 

• Interest rates—compare a variety of different savings account to ensure that you receive the best possible rates. The better the interest rate, the more money you make off your initial investment.

 

• Max your savings cap—if you started an Independent Savings Account (ISA) try to deposit as much as possible in that account. They tend to have the best interest rates possible, but there’s an annual cap to how much can be deposited.

 

• Diversify—don’t limit yourself to one savings account or one type. You can get a Cash ISA, Stocks and Shares ISA, regular savings account or any combination of the three.

 

• Develop savings plan—if you find out how much you can contribute to max out your ISA cap, and you’re still able to put more in savings, use the regular savings account to earn some interest on the extra.

 

• Withdrawal policies—compare withdrawal policies to ensure that you get the best one available in the off chance that you need quick access to funds.

 

Once you develop a strategy to obtain and manage your savings account, simply stick to your savings plan as much as possible and your savings will grow faster than you might expect.