How to use regular savings accounts
Aus Salespoint
Saving money can be a bit of a difficult issue, it's something we do with excess money and often doesn't seem as essential as that new item you want to procure and having a regular savings accounts on in addition to that is even less appealing.
The optimal point to start saving for the future is nothing set in stone and the best advice is now, especially in the current financial climate and to get started, there are some amazing deals to be had with regular savings accounts.
The accounts are for people well-versed, or ready to become well-versed, in the personal finance sector. The difficulty with these plans is all the bewildering bank jargon and differently worded benefits. For example, the accounts often try to make you put a minimum total of funds away every month and firmly restrict the number of withdrawals that can be made from the account. A regular pitfall that people may meet is banks offering sometimes misleading introductory interest rates that they will only honor for a single year before reducing it greatly, meaning you make less money from your savings.
So what is so good about them? What do I stand to gain? One reason word: rates. These accounts have the highest rates around and, while I may have used the word bewildering just a few minutes ago, just because something is to begin with bewildering doesn't need to mean that you are bewildered.
When comparing individual accounts, it's beneficial to use the same way of thinking we may use to judge credit cards. The methods you use to compare these credit card offers are often adequate to compare savings accounts. An extra complication is that not everyone is eligable for every account out there. A precondition of needing a current account with the bank is often imposed meaning you may need to change current accounts to get the most out of your savings.
In some situations, having a current account with the same bank can also give you a higher interest rate so it can be well worth doing this for money making purposes, though checking significant rates such as overdrafts in this case is also vital. Another thing to remember is that someof these accounts may charge fees that can eat away at the interest you earn. When comparing several different accounts the fee is a major consideration as if you are not contributing enough, it is possible that they could negate any contributions you may be making unlike a retirement savings account.
