Feb
Saving for the future is one of the most important things an individual can do with his or her money. Unfortunately, very few people save smart. One of the most important considerations in smart saving is finding an account with the best interest rate.
With inflation typically around 3% per year, a low interest rate means depreciation in the value of your savings with the passing of time. The following information will get you started on finding best savings accounts with good rates.
The internet is one the best places to begin searching for savings accounts. At fivecentnickel.com there is an online rate finding tool. Simply type in the amount you would like to invest, the type of account you want, and you will receive a listing of several different savings accounts with their interest rates.
At money.co.uk, there is a similar tool (http://www.money.co.uk/savings-accounts.htm) that will give you information on various investment vehicles including various ISAs, bonds, and several types of cash savings accounts.
Interest rates are unfortunately low due to the current economic climate. Rates above 1.50% are decent, but getting above 3% is rare without looking into stocks or bonds. Individual Savings Accounts (ISAs), which combine stocks and bonds, will commonly have interest rates ranging from 2% to 6%; however there is more risk involved than in traditional cash savings.
Another good investment vehicle is a fixed-term bond account. These accounts have rates between what you would find for a bank savings account and an ISA, ranging from about three to four percent.
The most important consideration in choosing between these types of accounts is the length of time you plan to invest over, and how much access you need to your savings. Choose ISAs or bonds for longer periods of time, cash savings accounts for short-term savings goals.
