Tips to help you choose a savings account

Having a savings account can get you closer to a secure financial future.

09:01 07 May 2013

More people than ever are probably wishing they had established a savings account earlier. There has been a drastic increase in the number of people visiting hospitals, which means more people are being stuck with medical bills they may be unable to pay.

 

With recent changes contemplated regarding debt, unpaid medical expenses for only £1,000 may be enough to cause someone to lose their home. No-one wants to be in that situation, so part of getting ahead with the seeming increase of illnesses will be making sure you have savings in place to help with those cumbersome medical bills.

 

What kind of savings account should you get?

 

• If you don’t have any savings accounts at all yet, you may want to consider getting a couple. An Individual Savings Account (ISA) works as a great long-term investment that will earn a little bit of interest and continue to grow over time. It may be more difficult to access the funds depending on your financial institution’s requirements.

 

• A regular savings account won’t give you a very good interest rate; however, unlike ISAs there is no annual cap so if you’re feeling ambitious and want to save more than the annual allotment, consider starting a regular savings account, or one of each.

 

• Also consider if there are monthly requirements to deposit a minimum, or fees and penalties if you aren’t able to deposit funds for a month.

 

• Find out if there are penalties to access your money when you’re searching for a financial institution and choose one that best fits your budget and lifestyle.

 

• If you can’t save on a regular basis try starting a savings jar and when you get enough open a savings account with the money.

 

It is never too late or too soon to begin a savings account, and accidents or illness can strike at any time. A savings account can mean a significant difference in how things turn out in the event of a crisis.