It is important for anyone to keep saving their hard earned cash. Whether it is to take a trip round the world, save for their children’s future school expenses, to start up a business, build a dream house or even to cater to emergencies, savings are always the best means of achieving these goals.
People take different approaches in the efforts of trying to accumulate their savings; some invest their money in the stock market over time, others will deposit their funds in fixed deposit accounts while others will take their money to Savings and Credit Savings Cooperative Societies (SACCO’s). A good majority will prefer to deposit their funds in high interest savings accounts.
The following tips may come in handy when you are selecting the high interest savings account which you will use to save up your money.
Conduct a wide research on the Internet regarding the various banks and other financial institutions in your locality which have the high interest savings account services. This will become very advantageous to you because you will be able to select from a number of local institutions that have the savings product you are looking for and select a few that you will analyze further.
It would be to your advantage if you visited a couple of banks and other financial institutions and enquire on their high interest savings account products. You may visit them on the criteria of the institutions that you selected from the Internet research and also consider visiting the ones which were not online. You will be able to engage the personnel responsible for the high interest savings accounts and have a better understanding of the product.
Seek advice from friends and family regarding the different high interest savings account packages available. This will help you to accumulate a wide array of information relating to the service, and this may come in handy while you are selecting the financial provider to use for your savings needs.
Some high interest savings accounts will accrue a fine if you withdraw your money before the specified saving duration lapses. This is especially the case for fixed accounts and ensure that you are aware of this before enrolling for the account.
When you are with your chosen financial provider, try your best to negotiate upwards the interest rate that is applicable to your high interest savings account. This will help ensure that your savings will grow at a much faster rate than with the lower interest rate offered by the institution.
Read and understand the terms and conditions of the high interest savings account before you sign yourself up.
It would be better if you had a high interest savings account which restricts the number of withdrawals you can make in a year. Your savings will therefore grow at a much faster rate due to fewer deductions.
Consult a professional in the field such as an accountant to help you to make a more informed decision in the selection process for your high interest savings account. It may cost you some money, but be assured you will be paying for quality and reliable information.
Once you open the account, it would be advisable to create a standing order from your salary account to the high interest savings account to ensure that every month you will be making a contribution towards your savings.
With more money, banks and other financial institutions will usually offer higher interest rates for the savings. Therefore, you may opt to combine with a friend and open a high interest savings account together. Combine your money and in the end you will share the accumulated savings according to your contribution ratio.
The following tips will help you while choosing a high interest savings account package:
- Read and understand the terms and conditions of the high interest savings account.
- Compare the different products offered by the various financial institutions.
- Take a savings account with a restricted number of withdrawals.
Sources and Citations
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