RBS privatisation is a plan for the future

Consumers can rest easy about the fate of their banking accounts and can choose from a variety.

07:21 15 August 2013

It’s never too early to begin thinking about the future and from the news that RBS won’t be selling the government’s stake in the bank over the next five years, it’s clear that a lot of planning and careful consideration have been given to the issue. The focus is to ensure the positive performance of the banking entity.

Similarly we treat our own banking accounts with the same careful consideration to ensure that we reach our financial goals. Here are a few of the banking accounts that you might encounter while trying to improve your finances:

• Junior Independent Savings Accounts—these can be opened for children and grandchildren. There are annual limits for the accounts, but the earnings remain free of income taxes. It’s also a valuable way to teach children about the benefits of banking accounts and responsible money management. They are available in both the Cash ISA options, and the Stocks and Shares ISA.

 

• Cash Independent Savings Accounts—this type of banking account allows you to save money with a better return than a regular savings account. You can use it for short or long term savings, but if you are looking for significant growth you’ll want to diversify. This is a secure option, but it won’t give you the best amount of growth.

 

• Stocks and Shares Independent Savings Accounts—these banking accounts typically have better overall growth than a Cash ISA due to the nature of how the funds are invested, but it’s also an option that creates a higher amount of financial risk. You shouldn’t invest all of your money in one of these, but setting aside a portion that you could afford to potentially lose might yield rewarding earnings.

 

• Regular savings accounts—one of the benefits to a regular savings account is that there is no annual deposit cap like there is with all of the Independent Savings Account options.