Ways to be good stewards of your budget money

Find out how to get the most from a savings account.

12:08 21 May 2013

While expenditure is set to increase for defence spending, the average person in the UK is trying to stick to a budget and some are even trying to maintain a savings account.

 

Although the economy has suffered for a while it appears to be looking better, but the Commons Public Accounts Committee is encouraging the Ministry of Defence to be good stewards of its budgeting resources, much in the same way that the average person is trying to be a good steward of their own individual budget.

 

For anyone who is concerned about maintaining or establishing a beneficial savings account, here are a few tips:

 

• Choose the type of savings account you want to establish. Typical basic choices are a regular savings account, Cash ISA (Independent Savings Account), and a Stocks and Shares ISA. The ISAs have annual limits on the amount that can be deposited, whereas the regular savings account does not.

 

 

• Compare the interest rates for the various types of savings accounts. You may not think a percentage point, or half a percentage point will make much of a difference but it definitely can add up over time.

 

There are also different ranges of interest rates available depending on the type of savings account you choose. For example, the regular savings accounts tend to have the lowest interest rates while the Stocks and Shares ISAs can fluctuate a great deal but may give you the better return in the long run.

• Look for other benefits that are well-suited to your needs. Perhaps there is no monthly fee, or requirement to deposit each month. Maybe you need a lot of flexibility and can’t necessarily keep a minimum amount in a savings account.

Some banks may even offer additional perks like a point reward system or an introductory interest rate that gives you a better return for a while.