All About Saving Accounts Rates

When you are deciding what sort of savings account is most suitable for you, there are a lot of factors you should consider. While the best saving accounts rates is one of them, it is far from the most important. If you are in a lot of debt, you should be looking to pay this off before you even consider saving. This is because the interest you will be paying on your loans, will far exceed what you will make on your savings.

If you have a mortgage, the money you intend to put away in a savings account should really be going towards paying off your mortgage. This is for the same reason as why you need to clear your debts; the interest on your mortgage is fair higher than any saving account interest rate.

If you can afford to put a set amount of cash aside each month, than you should consider opening a regular savings account. Do not let the different saving accounts rates put you off, these rates are often to pull you in and are subject to strict conditions and terms. You will find that most banks offer the same saving accounts rates, which means the extra benefits are usually things that are not immediately obvious. Things like online banking and being able to use ATMs abroad should all factor in to your decision when choosing an account.

Banks in the UK have a limit to how much you can have in a standard savings account, which is usually somewhere, around £85,000. This is due to insurance reasons, if the bank goes bust with your money, the insurance only covers each individual for this amount. Standard saving accounts rates are usually somewhere between 4.1% and 4.3% although First Direct offer 7.1% and Lloyds TSB offer 7.3% for new account holders opening an easy cash or basic access account.

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