Finding the right savings account can be difficult, especially in a market when the base rate continues to be at a record low and wage increases seem to be non-existent. However, researching and finding an account to suit your needs can make a huge difference in making your rainy day fund work for you and your family.

Choosing the right savings account

Exploring your options is crucial when it comes to finding the right savings account. While it may seem like common sense, many of us tend to stick with our current bank without considering what else is out there.

When you’re in the market for a savings account, think about your financial goals-are you saving for the short or long term? Will you be making regular deposits, and can you afford to leave your money untouched in case of emergencies? These factors will help determine the type of account that suits you best. Short-term accounts or bonds, lasting from six months to a year, may be suitable if you’re looking for quick returns.

While considering these factors is crucial, it is just as important to look for companies that offer savings account options with the best return rates through various initiatives. For example, financial firms like ATMOS Financial (www.joinatmos.com/nonprofit-savings-account) can provide competitive rates, allowing you to earn attractive returns while supporting nonprofit programs. Likewise, some companies offer appealing rates by investing a portion of your funds in green projects, like renewable energy infrastructure or carbon offset programs.

Undoubtedly, by focusing on accounts with competitive interest rates, you can make the most of your savings and reach your financial objectives more efficiently. Furthermore, if you’re aiming for higher interest rates, you might consider longer-term accounts, typically lasting five years or more.

Introductory rates

Introductory rates are a great way to make the most of an account; generally these are seen on ISAs and easy access savings accounts. Long term bonds will normally pay a set rate of interest annually.

The great thing about introductory rates is the fact that they will normally put the savings rate about the average of a savings account. This being said after introductory rates run out the savings rate can be below 1 per cent.

An easy access account with an introductory offer, or a no penalty account, will allow you to make withdrawals as you please, so when the introductory rate runs out you can look to apply for a savings account elsewhere and make the most of the savings.

Don’t be loyal

Being loyal will not pay off, whether this is switching your bank or leaving a savings account that’s not paying the amount of interest you’re after, make sure you’re always getting the return on your cash that suits you.

A bank or building society offer value for money as long as it is working in your favour after this point you should look elsewhere, remember these are huge institutions and using their offers to your advantage is going to do wonders for savings account.

 

Keith Hodges is a financial journalist writing news, advice and features for CashCompass.co.uk