How to Get Best Interest Rates on Savings

A bank account can help you save for short-term goals, such as the purchase of a new mobile phone and also be used to save for long term objectives, such as a down payment on car or a home. Whatever the reason for using a bank account may be, it will benefit you a great deal to obtain the highest possible interest rate on the cash you have in your account. Consider following some simple instructions and tips to make sure you get the best interest rate on your savings.

Instructions

  • 1

    Interest rates on your savings mainly depend on the financial institution and the type of account you have. Check with lending institutions and banks in your region to determine the best interest rates available. Most banks, especially national financial institutions, share the interest rates they offer on their websites, which makes it easier to evaluate deals.

  • 2

    Compare different kinds of benefits and products to see which has the most favourable amount and features for your situation. For example, a cash market bank account is a type of registration that will typically pay a greater rate of interest than a standard savings account. You can also write checks from a cash market bank account – a feature not available to most standard savings account holders. Certain financial institutions, such as NatWest, offer "relationship banking," which pays out a higher interest rate to valuable clients who have a relationship with the lender via other products, such as a credit card, debit card or unsecured loan.

  • 3

    Earn the highest rate of interest by leaving your cash in your savings account for long periods of time. For example, a certification of down payment lets you make a down payment for a specified period of time. Cash deposit terms may differ but can range from two weeks to several months depending on your circumstances. Usually, the longer you leave the cash in your savings account, the greater amount of money you will be able to earn as interest on savings.

  • 4

    However, irrespective of how much you earn, the way you use your account can eat most of your savings and therefore it is recommended not to withdraw money from your savings account for a long period of time to earn decent amount of money as interest. Excessive withdrawal can result in an additional fee from the lender.

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