A lot of people think that the most effective ways to get the most interest are by taking risks but that is not necessarily the case. Sure, you may invest money into new businesses and this could pay off quickly but if gambling your hard-earned money scares you, and then you have come to the right place. Today we are going to talk to you about some of our favorite ways to get more interest so you can save less and have much more money for your future.
Don’t Settle for Small Yields
Many savings accounts only give less than 1% back and while we believe every little bit counts, we want you to have more. Instead of jumping into accounts like this, shop around because honestly; you can get much more for your money and the last thing we want is to see you wasting your time. Start by educating yourself on online savings accounts and money market accounts because these offer you at least 2% on average; sometimes as much as 4%.
Check Safety Ratings
Before you put your money into a new account, make sure you are doing so with some sort of knowledge as to the safety of the account. Many people rush through the process and this is a terrible idea. You want to make sure your money is not only FDIC insured in case a bank goes under but also that there are good customer reviews. You should always check with the BBB before going with any bank. You work hard for your money and we want you to keep every penny of it because you deserve that much.
Link Your Accounts
A lot of banks are actually going to give you higher interest rates if you choose to link your savings and checking accounts. This is great for them and great for you because this means you can take a few mere seconds to move money from your checking account to your savings. Since saving is going to be much easier, you are bound to find yourself regularly saving more than you spend and that is always a good feeling.
Fees Make a Big Difference
When comparing all of your options, take fees into account. Sure, you may have found an account that is 0.02 higher than another when it comes to interest rates but is that small amount truly worth it if you are being charged a higher fee each month? Try not to obsess over those small numbers when they may not add up that much in the long term. Many people find themselves in tricky situations because they end up going negative or close to it without realizing it so always, always, always ask about fees before making your final choice. Some accounts require you to always have a certain amount of cash in your account or that you need to add something each month. These types of things can truly make a huge difference over the long term so be careful and take your time in making your choice.
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George Smith-Davies is a financial advisor and tries to guide people in financial matters. He thinks that Contents Insurance is really important for the safety of our home and belongings. You can follow him on Google+ for more information about insurance.
The catches are that you need to save over £25,000 and give three months’ notice to withdraw any money, so only open this if you don’t need instant access to your cash. It may also be worth you comparing with the fixed savings accounts section.