Which savings account is best for me?

Beginning a savings plan can be intimidating, but here is some helpful advice about savings accounts.

05:40 20 March 2014

Here are some helpful tips about savings accounts to get you started.

 

 

• Traditional savings accounts—these standard accounts are a great way to begin the savings process. You won’t really earn much interest off these types of accounts, but they do provide a separate account to help you track and organise your savings funds. Though many of these accounts have similar terms it is best to compare accounts from multiple lenders. Some may have fees, requirements for withdrawing and depositing, and potentially even minimum monthly amounts.

 

• Independent Savings Accounts (ISAs)—there are a couple of different accounts which fall under this particular heading. The interest earned varies, but is typically much better than that of a standard savings account. You do have a cap on how much can be deposited into these types of accounts, so if you are able to you should make sure to deposit up to the maximum. 

 

1. Cash ISA—these are better for short-term investment options and can help you reach goals such as an initial payment for a home, purchasing a vehicle or funds for school.
2. Stocks and Shares ISA—this option is better for long term investments, so don’t use one of these accounts for your emergency funds. These are better to keep for retirement or for money that you won’t need until much later. These are dependent upon the market which is why returns are usually better. 

 

For some people, saving money can seem like an impossible task. Often times we look for all that extra money in our budget and sometimes there just isn’t much, or any, extra to find. Other times we just don’t know where or how to begin saving. One of the best things you can do is try to come up with a savings strategy.