Information on making a sound high interest investment

When you have a lump sum, especially if it is a large amount of money, you may find the banks and other financial institutions are queuing up, ready to take your money. However, while many of these high interest investment opportunities appear to be good, you have to read between the lines to ensure you are getting the best for your money.

Easy access accounts are a great way to park up short-term savings while you make the decision on a more permanent investment. Easy access accounts allow you to withdraw from your account as many times as you like with no attached fees. You will also experience in-person customer service, which can make all the difference when deciding on investments. Interest on easy access accounts is not really suitable for the long-term. If you are looking to make an high interest investment, you will need to consider putting your money into a trust fund or a locked savings account.

A locked savings account offers high interest, as much as 10% APR, on the understanding your money stays in the bank for an agreed time period, which is anywhere from 12-months to 5-years. While it is not impossible to withdraw from these types of accounts, you will receive a penalty charge for doing so. This type of account should not be overlooked, when used correctly they are a great high interest investment and a quick way to make money on your savings. Before committing to a locked account, you will need to decide on a term you are comfortable with and one that you know you can stick too.

A trust fund is the ultimate high interest investment and whatever money you do invest will stay in he account for the full term specified. While there are usually no penalty charges, if you decide to withdraw your funds early, this will close the trust fund and all interest earned will be returned to the bank bar a small amount at the standard rate.

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