Are you ready to start saving? Sometimes we feel it is too difficult to save because we need all the money that we make, yet once you start a savings account you may find it’s easier to save than you thought. If you do not think about what goes into the account each month, saving can be quite simple. What you need to prepare for before you start a savings account is the type of account you want. There are different products out there like instant access, internet savings, regular savings, and high interest savings accounts. Each type of savings account available is designed for a specific type of customer. Here we will examine the what, why, and who of high interest savings accounts, as well as how to compare high interest savings accounts.
What Are High Interest Savings Accounts?
High Interest Accounts simply mean the savings account has a higher annual earnings rate than your regular savings account. Where a regular account may offer 1.6 percent AER, a high interest savings account may offer 2 or 4 percent AER. Savings bond accounts are going to be the highest interest savings accounts. You should also be aware that instant access savings accounts, while easy to get to your funds, often have the lowest interest.
High interest savings is meant to provide you with a vehicle that will earn you money, while your funds remain in the account. It can take up to 180 days of notice to access high interest savings accounts UK because they are not instant access. You have to send in your notice and wait for a reply.
The best high interest savings accounts are the ones that fit within your requirements. This means if you want high interest but easy access to the account, you have to compare high interest savings accounts that are instant access. In this case you look for the highest rate you can obtain in that category.
Compare High Interest Savings Accounts
To compare high interest savings accounts, you will want to find an easy way to read table. The information on this page is such a table in which you can quickly see what the interest rate is, whether it is variable or fixed, the amount needed to start the account, and what you are required to keep in the account. More information can be found when you click on the accounts. To truly compare savings accounts, even a high interest savings account you need to understand the terms and conditions. A quick look is great, but there can be other restrictions or requirements you might find unsatisfactory later if you do not do a thorough comparison.
Is a High Interest Account Right for you?
High interest savings accounts are best for individuals who do not require instant access. They are for someone who can place money in the savings account and leave it for several years, while it earns interest. It is also a good account for a person who can contribute quite a bit of money to the account over the period of a year. It is not suitable for those who may need the money they are trying to save.