The economic climate has forced millions of people around the globe to search for ways to spend less and stretch what little they do spend as far as it can go. Thankfully, there are many options to help you save, including a variety of choices at your bank that’ll ensure you stretch those important pennies a long way.

Many people are not very familiar with the vast variety of bank accounts available these days. In fact, most people tend to have the same account that was first opened for them when they were growing up and opened up an account under the guidance of their parents. Although convenient to ignore and just hope that your bank account is doing its best for you, the benefits of shopping around and ensuring you’re really getting the most from your bank account can be fairly significant.

Continue reading ‘Making the Most of Your Savings’ »

High Paying Savings Accounts to beat inflation
The latest UK retail price index in June 2009 shows an inflation rate of -1.6% so currently the outlook for savers is looking up as over the last few weeks the highest savings rates available on savings accounts has shot up.
With UK interest rates held at 0.5% by the Bank of England at the last monetary meeting it shows how keen the banks and building societies are for you savings accounts as rates as high as 5% are currently available on savings accounts and this desperation is increased as UK Building Societies had a net £2,239 million of withdrawals by savers in June 2009.
The first thing to look at is how long you want to lock up your savings for? If you want instant access then the Alliance and Leicester online saver issue 5 is offering 3.15% with no penalties for taking money out and the rate includes a variable BONUS of at least 1.65% payable until 2 August 2010 and a minimum online investment of £1,000. Tesco are also offering an internet savings account offering instant access and paying an interest rate of 2.25%.
Continue reading ‘Top Savings Rates From Uk Banks And Building Societies’ »

Despite the falling cost of travel, those going away are being reminded to make themselves aware of the various expenses that jetting off can incur.

Although the cost of air travel has fallen over recent years that should not be an excuse for people not to take steps to make the most of their money, one industry commentator suggests.

In an article for Lifehacker, Angus Kidman points out that although “air travel is cheaper than ever”, holidaymakers who have been able to secure a low-cost flight may find this is “rarely the end of the story”.

Once the likes of taxes and baggage fees have been taken into account, Mr Kidman claims “your cheap fare may not be quite so cheap”.

As an example of this, he points out taxes come to around $50 for domestic travel. However, those looking to go overseas could find such costs “ratchet up into the hundreds”.

Continue reading ‘Travellers ‘urged to beware hidden costs’’ »

I recently came into a small inheritance when my grandmother passed away. It’s not enough money to do anything substantial (such as buy a new Lexus), but it does give me some breathing room as far as covering my monthly bills. For the time being, I no longer have to worry about living paycheck to paycheck and I can start building up a nest egg. I want to be smart with this money and earn a return on the principal. But since I’m unwilling to invest in the shaky stock market, I’m looking at high interest savings accounts instead.

I’ve done a bit of research about how best to handle my money, and I think there are many reasons that high interest savings accounts are more attractive at this point than getting into the market. First of all, I love that most high interest savings accounts are FDIC insured. This means my funds are 100 percent backed by the government and are guaranteed even if the bank I use happens to go under. In this time of worldwide financial instability and uncertainty, it’s smart to have that kind of guarantee on my side.

A second reason high interest savings accounts are better than investing in the market is the relatively steady rate of return. The actual percentage I receive will fluctuate (after all, this isn’t a CD or money market fund) but should be in the 4-5 percent range. I haven’t sat down to really compare rates yet, but a cursory glance at some of the top high interest savings accounts across the country has given me an idea of what to expect. That 4 or 5 percent rate of return compares favorably to what some blue chip stocks would provide — and my investment is entirely without risk. Continue reading ‘Earn Money With High Interest Savings Accounts’ »

Britons appear to be keen to continue to spend money in spite of the economic crisis.

Despite the ongoing effects of the financial crisis, new research shows many people are determined to meet their major life goals.

Figures from Clydesdale and Yorkshire Banks reveal 81 per cent of Britons are set to go ahead with major plans such as getting married, starting a family or setting up their own business over the course of this year.

The majority of consumers are also prepared to splash out on luxuries, with 60 per cent of respondents claiming they will go on holiday this year despite the challenging financial climate. Continue reading ‘Recession ‘not affecting major life plans’’ »

A fifth of small business owners raided their savings accounts last year to keep their company going as the financial crisis wore on.

Billions of pounds have been drained out of entrepreneurs’ personal savings accounts in an effort to keep their organisation afloat.

While the financial downturn continued to make its presence felt in 2009, Hiscox reveals that one in five owners of small and medium-sized enterprises (SMEs) chose to sustain their organisation with their own money. Continue reading ‘Business owners ‘raid savings accounts’’ »

Money Market Account Interest

When working with a Money Market account it is important to remember that it is very similar to using a standard savings account. The process that is involved with opening and using this type of account is almost identical. The way it works is that an investor will open a money market account at a bank or credit union, and then the financial institution will pay the investor interest based on deposits that are put into the account. In turn, the financial institution will issue bank loans to other individuals, but at a higher interest rate than they paid the investor.

One of the best aspects of a money market account is that the interest is compounded on a daily basis and paid to the investor monthly. It is important to remember that interest rates can vary between financial institutions. One of the major differences between a money market account and a more traditional savings or checking account is that the more money that is deposited, the higher the interest rate will be. It is important for the potential investor to first speak to their financial institution about fluctuations in interest rates, and always shop around for the best deals possible. Continue reading ‘What Should You In Invest In? Money Market, Banker’s Acceptance Or Treasury Bills’ »

The new European rules will take effect on November 1, and specify that all banks and building societies are required to provide advance warning to customers of reductions to rates paid on bank accounts.

Savings accounts providers will also have to communicate details of rate changes to account-holders when a bonus period comes to an end. This is likely to affect the majority of savers, as most top-paying variable rate accounts now offer introductory bonus rates, which generally revert back to an uncompetitive rate after this period ends.

Account providers have been criticised in the past as many savers are unaware that their account no-longer pays a competitive rate.

The new law follows months of rate cuts to accounts made by providers, often without informing customers, despite the fact that the Bank of England base rate has remained unchanged at its record low of 0.5%. Continue reading ‘Savers to be informed of rate changes’ »

Term deposits provide a safe investment option for people with money they can do without, But first of all we have to define saving. Saving is when money is put to one side and left to grow and in some cases adding to the overall pot. It can be extremely tempting to spend money when it can be easily accessed, so if you are easily tempted to dig into your savings, putting your money into a term deposit can protect it. Once you have put your money in it is very difficult to get it out before the agreed term expires and in some cases you will be penalised for doing. This is often a good enough reason to make you change your mind and hold your new computer, or whatever it is you were tempted buy until the account matures.

The key feature that make term deposits so attractive is that they tend to offer a higher rate of interest than other savings accounts. This rate is guaranteed for the duration of the term, so it is not affected by the RBA rate like other accounts. You can decide how long you want to lock your money away for, with terms ranging from just one month, up to several years. Continue reading ‘How to benefit from Term Deposits’ »