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Advantages Of Getting An Investment Savings Account

Are you looking for a safe way to save money and earn a little extra at the same time? A savings account could be exactly what you are looking for. These accounts have a number of benefits, including that you earn extra money through your savings via the interest rates. The rate of interest, usually predetermined by the Bank Of England, determines how much on top of your actual savings you will receive. If you decide to use an investment savings account, instead of another type of account for your savings, interest can be tax-free.

Having a savings account allows you to separately save for specific events including holidays, new cars, and even retirement. Through a savings account, you can reach long-term savings goals with ease. It is easier to keep track of the amount of savings you have as all the transactions will be separate from your day-to-day spending.

Interest rates are one of the main reasons why a lot of people choose to keep separate accounts for their savings. Savings accounts have rates of interest which are more favourable than your average current account. To entice customers to open up savings accounts with their institution, some banks and other financial organisations even offer bonus interest rates if you keep a high account balance in their savings accounts.

If you are looking for exclusively online savings accounts, you may get interest rates which are even more generous since online accounts require less maintenance. Another advantage of online savings accounts is that some even offer no penalty charges for withdrawing money from your account, unlike with other types of savings accounts.

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