Piggy Bank Savings Account - saving benefits

As children, many of us have begun to put our money in his pocket a wallet hip. It 'a good lesson in managing money at first, but as adults, we must do more to hide their money under the bed.

But before you start putting your hard earned money in a savings account, you must pay debts that may be important. This is because the interest rate on loans is generally higher than the maximum interest on savings accounts. Therefore,financially to pay these debts before starting to record.

The only exception to this rule is the student loan. According to Finance Direct: "All student loan interest, which is pegged to the inflation rate in line with the index of retail prices. This means that in real terms, the amount paid as a whole has the same value as the amount you have borrowed and no profit is made on the loan. Accrued interest on the loan before payingin its entirety. The current interest rate is 2.4%. "

If your debt is a student loan is the financial situation, to put their money in a savings account and interest repayment of the loan in small amounts when you have extra money.

Due to inflation if money is not invested or put into an account that is earning more than the current rate of inflation, is actually losing money. Therefore, it is essential that youkeep your money in an account offering an interest rate that is above the current inflation rate.

There are a number of factors to consider when choosing a savings bank. Want instant access to your money, or are you happy to give weeks or months in advance? Want an account that is accessible online, or if you prefer to have a face to face with the service of a real person?

General advice to investors is to open first new so-calledISA (individual savings account). This is a savings account where you can save up to £ 3,000 per year and pay no tax on interest earned. As savings accounts, the rates vary from bank to bank, and unless the ISA is an account fixed rate of interest may vary over time. And 'always so good idea to check the interest rate every few months.

If you have more than £ 3,000 to save, and there are many accounts, high interestincluding savings accounts and savings bonds savings immediate Internet access to accounts accessible through the local branch, telephone and ATM.

Why are there so many banks and building societies, we must compare and verify all the various offers and interest rates. Sometimes banks offer high interest rates to attract customers, which is then reduced after six months or a year, so it can pay to keep an eye on greater efficiency in account the interests and the circulation of currencyaround.

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