Savings Accounts Guide
Unfortunately savers have been hit by the recent falls in interest rates. Whereas in the past it was possible to earn an income from the high interest rates offered on savings, with interest rates recently hitting a 40 year low of 3.5%, this is no longer the case. Over the next two years interest rates are expected to rise to around 4% to 4.5%. It is therefore still important to shop around for the best deal.
Current Accounts are not particularly good as a saving strategy. They are generally used to pay for monthly expenses and the interest rates offered on them are poor.
Postal Saving Accounts
A postal savings account is an account whereby you have to make deposits and withdrawals through the post. They generally offer good interest rates as it is expected that the money will be left within the account for reasonably large periods of time.