High Interest Rate Account

Virtually all of us would like to see our capital grow as fast as possible and the high interest rate account is one method of doing so. The various ways that you can grow your savings are too many and varied to comprehensively list here, but it may be helpful to think about them in terms of risk and return. There are savings products that may be seen as: Low or no risk to your capital or growth (highly flexible and modest to low percentage growth through standard interest, Low or no risk to your capital but unpredictable growth (linked to investments or part interest growth and part investment performance) and Risk to your capital and variable (potentially high or negative) growth (usually linked to high-risk variable investment portfolios and schemes). In this last area the returns may be the highest achievable but you may also run the risk of losing all or part of your capital investment. It is usually advisable to invest in such products or ‘play the markets’ only once you have received expert qualified advice.

There are an huge number of combinations of the above situations relating to high interest accounts and circumstances and you will need to be clear what your position is before you can say which is best suited for you. For example, are you planning to deposit a lump sum or do you wish to make regular periodic deposits? Do you already have ISA’s to the maximum amount permissible under tax exemption legislation? How much do you have to invest? How much risk, if any, do you wish to take? How quickly COULD you need access to your cash once invested? A high interest rate account could make your money grow much faster than you think possible. It may be worthwhile looking at the options and possibilities available through the specialist suppliers of financial products to see what options you have open to you to make your money work that bit harder for you.

High Interest Rate Account: Points to Consider

• If you're going for a higher guaranteed rate, it's often a good idea to check that the rate is guaranteed for the full life of your savings and that the provider isn't offering a temporary 'introductory' rate for the first 6 months only etc;
• It's usually worth checking that the savings account provider and their account is covered by the government's guarantee schemes;
• If the account is offering high interest rates (without risk) then it may demand larger than normal deposits both for opening the account and thereafter;
• It may also be the case that with a high interest rate account your money is locked away for a specified period of time. Typically access to your cash in an emergency is possible but there may be penalty clauses and administration charges. It's worthwhile checking these out in advance.