We all know that saving is essential for a bright financial future, but how do we know which is the best savings account? A good savings account is more than a safe place to put your nest egg, it’s a place to make your money work and grow.
So what’s the difference between a good savings account and a run-of-the-mill account? Well, it depends on what you want from your hard-earned savings.
Do you want to pay in regularly? Do you want instant access to your money? Do you want tax-free savings? Think about how and when you intend to use your saved money, as this will determine which is the best type of savings account for you.
In order to find the best savings account of that type, you’ll need to consider the interest the account gives you, or the Average Earnings Rate (AER). The higher this rate is, the more you’ll get back from your hard-earned savings. AERs are generally higher for accounts with longer notice periods for withdrawals, so investing your money on a more long-term basis can have significant benefits.
Regular savings accounts are the most popular for the average saver. They offer flexibility, and allow deposits of any amount you choose each month. These savings accounts also tend to give you easier access to your savings, with some even having ATM access with a cash card. However, as they are so flexible and convenient, the AERs offered on regular savings accounts aren’t always the most profitable. Your needs may be far different, so don’t follow the crowd with this, research and compare.
To get started, compare savings accounts below, and see which has terms that fit your needs. It’s the first step to finding the best savings account for you.