Many of us have some savings, but it can be difficult to know where to put them to make much money. There are different places that you can put the money and it is good to have an idea of your options so that you can decide which you think will be the best option for you to try out. This is a not a complete list but should give you some ideas as to what some of your options are.
Many current accounts pay no interest at all and so it is not wise to keep too much money in them. Of course, you do not want to go overdrawn, so you will need to leave some money in a current account even if it earns no interest as a buffer, but not much. There are some current accounts that do pay interest though and so it is worth thinking about whether you do want to use one of these. They may have a charge and they are only likely to pay interest on a limited amount of money, but do have a look and see what you think.
Instant Access Savings Account
There are savings accounts where you will be able to access your money right away. You will find that you will be able to easily take money out and put it in and there are unlikely to be limits on the amounts. However, you will find that the interest rate will be low compared to some other types of accounts. It is wise to have some money in an instant access account though because if you need money, you will be able to get it easily. The accounts will vary in the interest they offer so it is worth checking them out to see what is available and which you think will be the best.
An income bond is an account which will pay you an income from the interest. You will get the interest paid monthly into your current account which you will be able to use for whatever you want. This can be great if you have a low income, perhaps if you are retired and you want to be able to have some money each month available to live off. These may not pay a huge amount of interest but they may be instant access. It is worth checking them out as they will differ depending on who you get it from.
Premium bons are offered by National Savings and Insurance and are a unique way of saving money. You use your money to buy the bonds and they will be entered in a draw each month and you could win a prize. There is a chance that you will get nothing at all and the more bonds you buy, the higher your odds are of winning a prize. However, it is better than buying a lottery ticket as you can get your money back. However, the return can be lower than other savings accounts and this will depend on how many bonds you have and how ‘lucky’ you are.
Fixed Rate Bond
A fixed rate bond has an interest rate that is fixed for the term of the bond. This means that you will know exactly how much interest you will be getting on your money. It makes it easy to compare it with other similar products. You will normally have to tie your money up though, for a least a year, sometimes up to five depending on the specific bond. This means that you will need to think about putting your money into this sort of product as you could find that you will need the money and not be able to get to it. They may be some bonds where you will be able to make a withdrawal though, so you may want to look out for those but there will be a penalty.