There are thousands of savings accounts on offer from banks and building societies. While some pay very high savings rates, others don’t, but finding the best saving rates is an essential first step to making the most out of your money.
The best savings interest rates can earn twice as much as in accounts with the worst saving rates.Read on for a few things you can look out for to help you find the best savings rates.
Best savings interest rates
Banks and building societies regularly launch new accounts and it is these new savings accounts which often pay high interest savings rates.
If you already have a savings account, check the rate you earn and if it is poor, switch to one with a high interest rate. Such a move can mean you earn much more on your savings.
Consider online savings account
The best savings rates tend to be offered by accounts you run over the internet. This is because they’re cheaper for a bank or building society to run and they pass on the cost savings in higher interest rates.
If you prefer to run your savings accounts through a branch or over the telephone, you might end up earning slightly less interest, so it is important to compare accounts and find the best saving rates possible.
Best saving rates? Read the small print
Check out the terms and conditions. Some pay a high interest savings rate but limit the number of times you can take money out of the account to, say, four a year.
Some high savings rates are boosted by an ‘introductory’ bonus which you only earn on your savings for a short time. Once the bonus period runs out, you are left with a much poorer deal.
Compare high interest current accounts
Some current accounts can offer a better rate than some of the best cash ISAs on the market, so have a look around to see what’s available to you.
The obvious disadvantage to a current account is that your interest will be taxed, so the attractive rate advertised may not be as good as it sounds.
It’s worth calculating the tax before comparing high interest current accounts with ISAs.