Saving is the bedrock of wealth, and a great way to get started and continue to build your wealth, is with savings accounts. Not only will a savings account assist you to achieve your dreams, it will give you peace of mind if you fall on hard times.
Convenience and accessibility
The key features of savings accounts are that they are easy to open, easy to operate, and your money is accessible to you whenever you want it. This convenience makes savings accounts very useful and popular.
Rates and features vary dramatically
Like many other financial products, savings accounts’ features vary and so do interest rates. Indeed, in the case of savings accounts rates, rates vary dramatically, with the highest rates being similar to many term deposit interest rates, and ranging from little to zero interest. That’s not a typo – some savings accounts pay virtually no interest if your banking behavior either causes your balance to fall below a certain level, or not grow fast enough above a certain level. The key point is; you need to compare savings accounts in order to find the best savings accounts rates and conditions for you.
Online savings accounts
There are many types of savings accounts, with online savings accounts becoming increasingly popular as the power of the internet continues to soar. Because bank overheads are lower with online savings accounts (there is no need to provide a ‘bricks and mortar’ branch for customers to do their banking, it’s all done online), online savings accounts are usually the most competitive and able to pay higher rates of interest.
Children’s savings accounts
These are structured similarly to normal adults’ online savings accounts, in that they also have online access, interest payable and regular statements. Where they vary is in usually having age restrictions for opening an account, or by providing bonus payments or additional interest if children maintain a specified minimum balance or deposit a certain minimum amount each month. The key idea behind children’s savings accounts is to encourage children to save and to learn good lifetime money habits.
Make the most of your money today, compare high interest savings accounts and work out your potential savings growth with our savings calculator. For more information visit our detailed savings account guide or follow our news articles to get the latest savings tips.