How to use regular savings accounts

Saving can be a bit of a tricky issue, it's something we do with spare money and often doesn't seem as crucial as that new item you want to get and having a regular savings accounts on on top of that is even less attractive.

If you are looking at this hopefully you have chosen that the right time to get saving is now and with the awesome deals out there in a variety of different savings accounts, including regular savings, they are a good place to start.

They take a good bit of investigation to get the maximum out of but the advantages are well worth the graft required. That's because they contain a bewildering amount of terms and conditions. One normal condition imposed by the bank or building society is a minimum contribution you must make each month which may be displayed in dissimilar ways and a cap on the amount of times you can access your account each year. A regular pitfall that people may come accross is banks offering sometimes deceptive introductory interest rates that they will only give for a single year before lowering it significantly, meaning you make less money from your savings.

You could now be asking yourself, why do I require one of these? Is it worth the trouble? A single word word: rates. These accounts have the best rates around and, while I may have used the word bewildering just a few minutes ago, just because something is to start with bewildering doesn't need to mean that you are bewildered.

When comparing different accounts, it's helpful to use the same way of thinking we may use to gauge credit cards. The techniques you use to compare these credit card plans are often adequate to compare savings accounts. However, note that not all accounts are open to all. It's not out of the ordinary for bank to ask you to open and use a current account with them in order for you to have access to some of their savings products.

Another tactic employed by the banks is to offer an even higher rate to those customers who also keep a current account with them and although this may look better, it's smart to thoroughly research the conditions of their current account before any potential switch. Another aspect to take into account is any fees your bank may impose on your savings as these can add up. This is well worth taking into into account when going to compare savings accounts of any kind but especially in this case where it must be worth it when it comes to the rewards on the plan and against other plans such as retirement savings accounts.