Keeping the best interest rates

Tuesday September 16, 2008

Savings accounts with high promotional interest rates can be a great way to make money in hard financial times, but the rates rarely stay high once interest rates are lowered in other areas. Nevertheless, some savings accounts are always going to have high promotional rates, you just need to be careful not to take advantage of them too often.

Sometimes banks offer high interest savings accounts as promotional offers only, which they are set to withdraw as soon as it becomes unprofitable. The account will often revert to either an introductory rate or a standard variable rate at this time.

Essentially, when deciding whether you should switch savings accounts to take advantage of promotional interest rates, you must think about the interest you will make over several years rather than only the next few months. Keep in mind that most banks will not consider you to be a new customer again unless you have not been with them for several years, so be careful not to switch savings accounts so often that you get stuck with the worst interest rates around.

There are many banks out there, but they do not all focus on offering high interest savings accounts. You must be careful not to just immediately hop from one high promotional rate to another as soon as you see a better deal, as this could quickly see your funds having to only benefit from lower standard variable rates. Many banks will consider you a new customer for the purposes of promotions and introductory rates after a few years, so always be sure to keep track of who you have been with recently and when you can benefit from their introductory rates again.

Please visit our comparison page if you would like to compare savings and high interest accounts and browse our site to read more about savings accounts.

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