How to make sure you get the best savings rates

Saving can be challenging for a variety of reasons, so learn to make the most of your money.

07:18 29 January 2014

Many of us know that we need to try and save our money, but we sometimes do not look much beyond that. There are many things to consider when saving money, and there is a difference between just keeping it in an account, and making sure that you are actually earning more money on your funds. Here are a few ways to make the most of those funds that you want to keep for emergencies.

 

• Comparisons — make sure you compare the terms, fees, and interest rates of any account that you consider opening. Many of the accounts which yield a better interest rate require a larger deposit amount. They may even require minimum amounts. If you want to earn a lot more interest though, it is wise to consider such an account.

 

• Best product — if you are looking more for a return on an investment you might want to consider bonds, ISAs or investing in property. A savings account of any kind will not yield great earnings. If you are just saving your money without a specific goal than you can simply choose the savings account with the best interest rate and the terms that fit your lifestyle and needs.

 

• Fixed rates — if you have the option to choose an account which offers a fixed rate of interest at a relatively decent amount than it is wise to select such an account. Some banks have interest rates that may fluctuate depending on the economy but a fixed rate will be the same for the duration of your account, or for a certain amount of time as determined by the bank.

 

• Flexibility — once you choose your account, the work is not over. Do comparisons at least once per year to make sure you are making the most out of your hard-earned money. Switch to better rates when possible.