Making a choice in savings accounts

Making a choice in savings accounts

11 June 2008

Savings accounts can make you quite a bit richer if you are careful in choosing them or very much poorer if you are reckless in your decision. The key is to know what your particular needs in savings accounts are, so that you will choose savings accounts that are optimised for you rather than just containing attractive but useless features. It does not help to have savings accounts with high interest rates if you need to use most of your funds each month, just as keeping large amounts of funds in an account with high fees and low interest will have you losing out in the long run.

Savings accounts for individuals who need to use most of their income each month should focus on transaction charges first. If you are such an individual, you will want an account that gives you plenty of free transactions every month and charges minimal fees. You may also wish to open other fee free savings accounts with better rates in order to stow away whatever savings you do manage to keep.

Savings accounts for those with a large amount of spare cash can be more restrictive on withdrawals and should have a much higher interest rate than everyday savings accounts.
If you are such a person, you may also wish to consider a term deposit if you have amassed a large sum already, or you may wish to use a combination of everyday savings accounts, high interest accounts and term deposits in order to balance interest returns with a decent level of accessibility.

Please visit our applications page to apply online for a range of excellent savings accounts or visit our specialised page of bank savings accounts.

Back to News Index | Back to Home