There was a time when choosing a saving account was not a big deal. But at the present time a huge number of savings accounts are packed in the savings souk, all offering different deal and interest rates. Therefore it is actually a challenging task and one needs to be very careful before choosing an account. Selecting a reliable bank is also very important.
- Types of savings accounts
There are a number of saving accounts are available nowadays like Instant savings account, Regular savings account, Notice savings account, Individual savings accounts, fixed rate savings account etc.
All these savings accounts have their own features and deals. One can look upon the deals and criteria in detail and thereby choose the relevant one. Let us have a detailed look on the accounts individually.
- Regular Savings Account:
This type of savings account helps the saver to deposit money on a monthly basis and so it is a perfect place for a new saver. It offers a well and good rate of interest as well.
- Notice Savings Account:
This is suitable account for those who want to save money for a long period of time or do not want to make use of the money saved. In this type of account the saver I supposed to inform the banker in an advance that he needs to withdraw some money. The transaction takes time in notice savings account.
- Instant Bank account
This very kind of savings account makes a liquid flow of money as people can easily take out money whenever needed. Such accounts provide online banking, ATM facility.
- Individual Savings Account
It offers tax free saving and so very relevant for those savers whose earnings are not taxable.
- Fixed Rate Savings Account
This type of account offers a fixed interest rate and so the saver gets a smart return. Although it has some restrictions like it does not allow the saver to deposit money regularly or asks for a lump sum amount.
Now these are the saving options that one will get in the market. But everybody has different need and situation which are completely different from each other. Therefore whenever choosing a savings account one should scrutinize every aspect in detail. There are few facts that help in selecting the most suitable account.
- Using Cash ISA Allowance
As already said this helps in relaxing the tax burden and so one can make his 5,640 pound tax free having the benefit of this allowance and get the maximum return.
- Expected interest mode
There are mainly two types of interest, fixed and variable. One first needs to decide which one he would prefer. If he likes to go for fixed interest rate then fixed rate Savings account is undoubtedly the best option. If he wants chooses variable interest rate then he can choose some other account but in that case it must be remembered in case of variable rates the amount up-downs.
- Regular or Lump sum Saving
If the person wants regular saving then regular savings accounts is the best option but for saving with lump sum amount nothing can be better than the fixed rate one.
- Emergence o Money
If the money saved have chances to get use for emergency purposes ten the saver must go for the Instant savings accounts.
These are few ways that makes the selection easier and makes a safe saving. For more article visit: government funding and grants for Australian businesses