Flexible Saving Is It For You?

Many of us put aside a small amount each month from our regular earnings. This could be for the children’s college fund, a new car or just for a rainy day. However, there are an increasing number of savings plans offered by banks and building societies for different types of saving.

Those who regularly withdraw their money but are also eager to earn interest may be interested in flexible savings. Generally, these types of saving schemes allow people instant access to their cash. Bear in mind, though, that very often these accounts have rules about the number of times you can withdraw cash and also the amount that can be withdrawn at any one time.

Providers may also set a minimum amount that must be deposited each month – some could choose to set up a regular transfer from their main account to ensure this obligation is met. This can be a good way to ensure you are saving regularly as it is automatically removed from your account and you don’t have to make a conscious effort every month. Even small monthly payments can build up quickly over the course of a year into quite a substantial saving.

They can also have long agreements in place. This means the account could be used by the saver for many years, maybe even running into double figures.
Overall, these types of account allow people to save when it suits them and may be a good idea for those who store money up to buy medium-priced items such as washing machines or televisions rather than purchase them on credit.

Compared to accounts where access is more restricted, the interest rates on flexible savings may not be as competitive.

Therefore, it is important someone considering opening one performs a thorough audit of their finances and spending patterns before signing on the dotted line.

There are many types of flexible account available and more details can easily be found on the internet. However, it is worth talking to an independent financial adviser to make sure you are getting the best deal for your individual circumstances.

If you would like to know more about savings why not ask AnswerBank Business and Finance.