Savings account - interest rates or access?
Published 15 February 2012 by Lucy Bower
When you're choosing a bank account for your savings, you may have to choose between higher interest or easy access to your money. Read more here.
If you want to make your money work for you, a high-interest savings account is a good place to start. Unfortunately, savers aren't getting the best returns on savings at the moment. However, if you are prepared to leave your money in the bank for longer, you'll probably get a better rate of interest.
Many people can't really afford to put as much as they would like into savings at the moment, but if you have £25,000 to your name, you might qualify for one of two Investec Bank savings accounts. It offers two accounts that it claims are highly competitive, with interest rates that vary based on the most competitive deals available elsewhere on the market.
As with most savings accounts, the rate of interest you get will still depend on how long you're prepared to leave your money in the bank.
A spokesperson for thinkmoney commented: "Consumers are faced with a choice when selecting a bank account for savings. A higher rate of interest is an incentive for some, although your money could be locked away for some time. Others might prefer ease of access to their bank account, in case they needed their money for something unexpected.
"It's an important thing to consider in today's economy. Perhaps the average person doesn't have a disposable £25,000 to place into savings. There are many out there who are struggling to save at all - and with inflation at an all time high, wage increases not matching the rate of inflation, and the general cost of living increasing, the need to budget your money is becoming essential for so many people.
"If you are struggling with you monthly budget, and think that a stricter financial regime could help you to get back on track and become fully in control of your money, allowing you to perhaps begin saving some money each month, then you could look into a budgeting back account. This type of account could help you to regain control and look towards opening a high interest savings account in the future."
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