One of the best ways to build wealth safely is to bank any spare cash that you have. If you deposit your cash into an online savings account you can turbo-charge your money through some high interest savings rates.
Unlike traditional everyday transaction accounts, savings accounts offer savings rates at a higher level of interest with a range of features and conditions, which can include bonus rates that can really help you achieve your financial goals.
In addition to the base interest rate, many savings accounts offer bonus savings rates for a limited time. After the bonus rate period has expired, the interest rate will revert back to the base rate – or a new bonus rate may be offered.
One way to ensure you maintain a regular deposit routine is by choosing savings accounts that have a ‘salary direct credit facility’. In other words, choose savings accounts that allow you to automatically direct a portion of your salary into the account.
Do note too that some savings accounts offer different levels of interest, with the highest rate being achieved if you fulfil certain conditions, such as maintaining a minimum balance or making minimum regular deposits.
Limited access to facilities
Unlike term deposit accounts where your money is locked away for a fixed period of time, most savings accounts allow you some limited access to your money without incurring a penalty fee, though this varies from one financial institution to another.
Some financial institutions try to reduce your temptation or eagerness to spend your money by restricting ways you can access the funds. These days, many savings accounts have limited or no branch access and only a minority of online savings accounts offer telephone and ATM facilities.
If you do need to dive into the kitty regularly, then a transaction account is likely to be more useful for you as it allows easier access to your money. That’s the good news. The bad news is that a transaction account will pay you very little, if any, interest.
It’s a matter of different savings accounts, at different savings rates, for different people. To grow your wealth today, compare high interest online savings accounts and follow our news articles to get the latest savings tips.