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Want the best rates on a long term savings account?

There are a number of things that you need to keep in mind before you go searching for a long term savings account with the best rates to suit your circumstances. Perhaps the most important of all is the fact that things are quite tough for financial institutions at the moment, given the current financial climate, so you'll need to be aware that it's not easy to get high interest rates on savings accounts right now.

You're really going to need to shop around in order to figure out which is the best for you. It is also very important to know just how much money you have to save. Whether it's a lump sum that you're going to transfer from your current bank account to the new savings account, or you have done your homework and figured out how much per week you can afford to put aside, you'll be able to get a better idea of how you can put your money to work for you if you have a rough knowledge of how much money we're going to be talking about.

Another very important thing to remember is the fact that many fixed rate savings accounts will penalise you for taking your money out before the term of the deal has expired, so you could actually end up costing yourself money in the long run if something arises and you need to get to your money quickly.

With this in mind, there are a number of different options available to you. Allied Irish Bank offer a fixed one year deal at 3.40%, which represents a solid all round investment. Similarly, you can get a 3.35% fixed rate 1 year deal from First Save, although this is only available online.

Other options you could look at are variable rate accounts from The West Brom Building Society at 3.17%, Nationwide at 3.12% and ING Direct at 3.10%. You can keep up to date with all the latest rates at moneyfacts.co.uk.

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