If you’re planning to stash some accessible cash in a savings account, looking for one with the highest interest rate makes sense but it doesn’t cut it if you want the best deal for your money. To ensure that you’re putting your money in a good place, here are some things you need to know:
Check your debt interest rates
If your debt’s interest rates are higher than what you earn with your savings account, you might want to consider paying off your debt first. Some experts even recommend to use your savings to repay debt if necessary. But there are key factors to consider before you go ahead and do that.
Check mortgage payments
If you also have a mortgage, you’ll want to check if paying more makes perfect is better financially. You’ll have to check the interest rate if it’s higher than what your savings will charge after tax.
Consider switching bank accounts
If you think your current savings account is not giving you the best deal in terms of interest rates, switching to another bank might do the trick. In some cases, you’ll also need to switch to current accounts as they usually pay higher interest.
Choose the right type savings account
There are many types of savings account. Some are for individual consumers others are designed for couples. Some accounts such as the regular savings account are ideal if you are planning to set aside money each month. If you want to lock cash away, time deposits may be preferable.
Check savings protection
Not all banks in the UK are regulated or protected. If you have a substantial savings, it’s important to remember that UK-regulated accounts only protect up to £85,000 in savings per person is safe. Remembering the financial collapse in Greece, it is more important than ever to ensure that your money is protected.