Choosing the right savings account
Choosing your savings account can be a difficult time as there are so many different products on the market. To find the right one for you, you should ask yourself the following questions:
- Can you afford to lock your saving away for 5 years?
- Can you save a monthly fixed amount?
- Will you need to use your savings on a rainy day?
- Are you comfortable with the idea of investing in stocks and shares?
Depending on your answers to these questions you should choose your savings account accordingly. If you can invest your money over a long period of time and do not need to access it you could open a Maxi ISA and leave your money there for 5 Years. If you always have a set amount you want to save every month then you could open a regular savings account.
If you are not sure if you will need your savings in the near future or not it may be worth you just opening a normal instant savings account which might not give you the best interest rate but at least you are in control and have access to your money.
Tax free savings
One thing all savers should do is utilise their tax free saving every year. To do this you should open an ISA and make sure you put your full tax free allowance in every year. This years yearly tax free allowance is £7,200 so if you saved this amount for 10 years you could have saved £72,000 and all of this would be tax free, not forgetting to add the interest on top.
How to apply
Once you have decided on which savings account is suitable for you please click here to visit our savings account page and apply for the account that suits you.
Savings Accounts Guide |
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