If you want to maximise returns from your day-to-day savings and minimise the investment risk, it is important to do a pre-investment research to decide on the best savings account that pays a high interest rate. This article guides you on how to get high savings interest rates and how to make the most out of your savings.
How to get high savings interest rates
Quote from different banks High saving rates can be obtained by comparing quotations from different banks and investment houses. Interest rates vary from one investment institution to another, thus by comparing different best bank rates, you can choose the bank that has the best rate savings. Fixed savings account You can get high interest rates by opening fixed-term savings accounts. The terms and conditions of a fixed savings account stipulate that the account has a term period of say six months to five years and any additional deposits or withdrawals from the account are not allowed up until the maturity date. Such fixed-term savings accounts arrangement offers the best fixed rate which varies with the term of the account. Invest your money for a longer period High interest rates can be achieved by investing your money for a relatively longer period of time. In the case of a fixed-term interest account, the longer the investment period, the higher the interest rate. Make a high savings account deposit High savings interest rates are achieved by making a high deposit amount when opening a savings account. The interests vary with the amount deposited, thus the higher the deposit amount, the higher the interest rate. Compare new savings accounts It is important to compare the interest that you are earning on your existing account visa vie new advertised savings accounts. In most cases, banks offer higher interest rates to new clients to attract them and maintain the existing rate to current account holders. In this case, you can earn high savings interest rates by switching to a new savings account. Also, some banks offer ‘introductory bonus’ that makes the rate more attractive and therefore, it is important to take note of this.
Importance of high interest rates
Maximise returns If you choose a high savings interest rate, you will be able to achieve maximum possible interest returns from your money accounts. High interest rates help you to enjoy maximum interest value of your investment.