There are lots of different banks and many of them offer savings accounts. It can be difficult then to choose between them. Although having a lot of choice is a good idea because it means that we can select the one that suits our needs the best, it also means that we will need to look through them and choose the one that looks right and that can take some time. It can sometimes feel like too much hard work. However, if we think hard about what we want, then it will be much easier to match with a bank.
The amount of interest that we can get on our savings is likely to be a big influence on the decision. Savings interest has been pretty low for everyone lately and so you might not think that it matters that much who you are with. However, interest is a free bonus for saving or you could think of it as a reward and so if we can get lots of it then that is great. So, changing to an account with higher interest can be great. Also, if the rates are significantly different it can make a really big difference to how much you get across a whole year. It is worth working out how much this will be and then you can compare the different accounts and it will help you to more easily decide whether it will be worth going fr a bank with a higher rate.
Instant Access/fixed rate/notice account
It is also worth looking at the types of savings accounts that there are. Many people only really think about instant access savings account when they consider savings accounts. These are where you can get your money out whenever you wish and often you can pay in any amount at any time too. However, there are other types of accounts as well and these will pay more interest and so are worth considering investigating. A fixed rate bond, for example will guarantee a certain interest rate but you have to keep the money in the account for a certain time period. This will vary depending of the terms of the specific account but it will be at least a year and could be up to five years. There are also some accounts where you need to give notice before you withdraw money. You might need to give a month’s notice or even longer for some. These accounts will not suit everyone and it can always be handy to have some money in an instant access accounts o that you have some available to fall back on in an emergency.
Reputation of Bank
It might be that you will be interested in the reputation of the bank before you trust them with your savings. It can be worth finding out a little bit about them as it will help you to be able to work out whether you think that you will be happy to use them or not. Some banks are more well known than others and you might be reluctant to use one that you do not know that well. However, it is a good idea to think about the fact that just because you do not know them, it does not mean that they are not good. Just do a bit of research about them first to see if that puts your mind at rest. Look at their website ask people you know if they have used them and you could even look at online reviews although make sure that you find them on a trusted source.