Five ways to boost your savings returns

If you don’t need your savings imminently, and you’ve got enough set aside in an instant access account to cover any unexpected expenses, such as car repairs or a boiler breakdown for example, you might want to consider a fixed rate savings account. These tend to offer higher returns than easy access accounts, but you won’t usually be able to make any withdrawals during the fixed rate term. 

Fixed rate accounts usually run for a range of different terms, typically from three months up to five years, so before signing up, think about when you’ll need to access your money. As a general rule, the longer you’re prepared to tie your money up for, the higher the rate of interest you’ll be offered.

For example, the top rate you can currently earn on a one-year fixed rate account is 0.90% AER from Cynergy Bank although you need a hefty £10,000 to apply. If you don’t have this much to put away, you can earn 0.85% AER from Raisin UK with its one-year Fixed Term Deposit account (provided by Union Bank), and this account can be opened with a minimum deposit of £1,000. If you’re looking for a longer term account, UBL UK pays 1.55% AER on a minimum deposit of £2,000 held in its five-year Fixed Term Deposit account.

If you are considering tying up your cash for the long term, bear in mind that if interest rates rise during this time accounts paying better returns might become available, and you won’t be able to take advantage of these until your bond ends.

Author: wpadmin

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