The 6 Best Savings Accounts To Take Charge Of Your Savings Goal
Savings accounts are one of the best ways to grow your money in the long term, and there are plenty of different options out there to choose from. With so many choices, it can be hard to know which account to go with. To help you out, we’ve compiled a list of what we think are the best savings accounts based on a combination of factors including interest rates, fees, minimum balance requirements, and more. Check out our picks and see if there’s an account that will help you reach your savings goals in the future!
Saving money is one of the most important ways to achieve financial freedom. However, just saving money in a jar wouldn’t cut it. You would have to find a secure place for the money that you are looking to save for the future. The answer is savings accounts, savings accounts are great for short term goals and long term goals as well.
Whether you are looking to save up some money for an emergency or trying to save up to buy a home then you should be looking at savings accounts. However, there are different types of savings accounts and it is of utmost importance for you to pick the one that fits your financial needs.
We will take a look at the top 6 savings accounts that you can choose from, their pros and cons and you can compare for yourself which one is right for you?
Types of Savings Accounts
Traditional or Regular Savings Account
This is the entry-level savings account that can be found at any online and traditional bank with varying interest rates. People who are looking to save money for long-term or short-term goals and who aren’t too worried about receiving the best interest rates might find this as the best savings account for them.
Traditional savings accounts are popular among consumers because of their low minimum deposits. Although this low minimum deposit affects the interest rate that you can get on the account. This account also allows for up to 6 free withdrawals per month (depending on the bank it could include or not include ATM withdrawals).
Best regular savings accounts
The best savings accounts offer great interest rates and perks to help you make the most of your money. Here are our top picks for the best regular savings accounts.
- First Direct Regular Saver Account: If you're looking for a high-interest account with no added fees, this is a good option. There's no minimum balance requirement, and there's a rewards program that offers an additional 2% interest rate on up to £2,500 if you maintain an average balance of £1,000 each month during the first year. And with competitive rates across all major currencies, this is one of the best deals out there for international savers as well.
- NatWestDigital Regular Saver: With rates starting at 3.50%, it's not the highest paying account on this list but it does come with some nice benefits including cashback (up to 25%) and price protection (so you'll never pay more than the advertised price for products), which may be worth considering.
- EasyFlex Savings Account by N26: You can't get any simpler than this online bank's basic savings account, which doesn't require any paperwork or monthly activity requirements. It offers a low-interest rate of 0.17% but it's an easy and quick way to start saving. To open your EasyFlex Savings account, your first opening deposit must be a minimum of €500.
Easy Access Savings Accounts
An easy-access savings account is a type of bank account that allows you to deposit and withdraw money at any time without notice or penalty. This makes them ideal for saving for short-term goals, like an emergency fund or a holiday. Sometimes they may come with a bonus interest payment if you meet certain conditions.
Top easy-access savings accounts
The best easy-access savings accounts offer high-interest rates and low fees. Here are the four best accounts:
- Marcus by Goldman Sachs Account: which offers a whopping 1.45% APY. However, that high yield comes with some strings attached. First, you'll need a minimum deposit of $500 to open an account. Second, you'll only earn that top rate on balances up to $250,000; anything above that will earn 0.60% APY.
- AldermoreEasy Access Account: Offers a competitive 1.33% APY on deposits up to £2,499, but falls behind when it comes to higher amounts, offering just 0.55%. But it does have no balance limit and no monthly fee for the first year.
- Paragon BankTriple Access Account: This is another solid option with a 1.25% APY on balances up to $100,000; anything above that earns just 0.15%. You can also avoid a monthly maintenance fee as long as you maintain one debit card purchase per month, but there's still a hefty ATM withdrawal fee of $1.50 every time you use an out-of-network ATM.
- Saga Easy Access Savings Account: One of the best options for those looking for a new easy access account, Saga currently offers 1.20% APY on balances up to £5,000 with no fees whatsoever and even free mobile banking apps.
Fixed Savings Account
A fixed savings account is a type of savings account where the interest rate is set for a specific period. This means that no matter what happens with the market, your interest rate will stay the same. This can be helpful if you are saving for a specific goal and want to know exactly how much interest you will earn. Plus, most banks offer bonuses for opening a new account, so it's worth considering if you're looking for a new place to park your cash.
Top Fixed Savings Accounts
The best-fixed savings accounts offer a competitive interest rate and a high yield on your money. With such a competitive rate, it's worth the sacrifice to lock in a decent amount of money for 5 years. Here are some of the best-fixed savings accounts for 2022:
- Atom bank: it offers Up to 3% gross/AER (1.75% AER) with up to £250,000 (£2,500). It doesn't have a monthly fee or minimum balance requirement so you can deposit as little or as much as you want. What's more, if you transfer your current account with any other provider to them then they'll give you an extra 50% bonus.
- HSBC Advance Bank Account: this is another good option with 3% gross/AER(2.00% AER) over the first 12 months only, though the interest rate falls after that. However, this account does come with a monthly fee of £5 but there is no minimum balance requirement. Another thing to consider is that you need to make at least 10 transactions per month or else you'll be charged 25p per transaction afterward.
- Barclays Bank UK Progress Saver: we think this is a great account because not only do you get 3% gross/AER(2.00% AER) with no minimum balance requirement, but it comes with free online banking too. You can also withdraw money from your account whenever you like without being penalized which makes this one of the best savings accounts in 2022.
- Cynergy Bank fixed saving account: the downside of this account is that you need to keep a balance of at least £25,000 for two years before getting access to 3% gross/AER (2.00% AER). There's also a monthly fee which starts at £3 and goes up depending on how much you save with them
High-Yield Savings Account
This type of savings account offers its holders a high APY. What does APY mean? It means Annual Percentage Yield or in other words, the real rate of return earned on an investment, taking into account the effect of compounding interest. So if you are someone looking for a savings account with a more competitive compounding interest rate while paying less in fees, then this is the right savings account for you.
If you are looking for a bank with high-yield savings accounts before you start looking at your local banks, we can tell you that online banks offer higher-yield savings accounts than their traditional counterparts. The reason online banks offer higher yields is that they are looking to attract users to use their services. Check out our list of the best online banks.
Choosing an online bank's high-yield savings account allows you to take control of your funds and savings. Also, you can easily check on your account from the comfort of your home using the online bank's mobile app or website.
Money Market Accounts
A money market savings account is one that combines the features of traditional savings account with the ones of a checking account. These types of savings accounts can be interesting to people who want access to their money while still earning interest on savings. You can easily find a money market account at your local banks as well as online banks, however as we said earlier if you are looking for better rates than you would have to go online.
When applying for a money market account, you should know that fees are also imposed on withdrawals. However, you will get 6 free withdrawals per month, just like the regular and high-yield savings accounts.
Notice savings account
A Notice savings account is a type of savings account that requires you to give the bank notice (usually 30 days) before making a withdrawal. The benefit of this type of account is that it often has higher interest rates than other savings accounts. This means your money can grow faster. Plus, if you need to access your money in a pinch, you can usually do so without penalty.
You might not want to use a Notice savings account as your primary place for long-term savings since withdrawals are restricted and some banks require you to maintain minimum balances to qualify for their best interest rates.
Top Notice savings account
Here are three of the best Notice savings accounts to help you reach your savings goals:
- Paragon 120-Day Notice Savings Account: The Paragon 120-day Notice savings account pays up to 1.75% AER variable on balances up to €250,000. The minimum opening deposit for this account is €500.
- Aldermore 30-Day Notice Account: The Aldermore 30-day Notice account pays a 1.4% AER variable with a €1000 minimum opening deposit.
- RCI Bank 95-Day Notice Savings Account: RCI Bank’s 95-day Notice savings account offers an attractive 1.35% AER variable rate for deposits between €1,000 and €250,000. You must have at least €10,000 to open this account.
Certificate of Deposit Account
This type of savings account allows you to leave your money in a savings account over a set period. During that time, interest will be accrued and once the time is up you can withdraw your savings. People looking to get good rates and do not need to have immediate access to the funds might look to certificates of deposit accounts for their savings needs.
Most brick-and-mortar banks as well as online banks provide a version of the certificate of deposit accounts. Online banks do provide better interest rates to their customers because competition is very steep in the online banking space. The most popular set period for the certificate of deposit accounts ranges from short periods like 30 days to longer periods. If you were to choose the longer-term period then you will be provided high-interest rates.
A certificate of deposit can help you maximize your savings if you have funds that you do not need immediately. Keep in mind that with this type of savings account, you will be penalized for withdrawing your funds before the maturity date.
Note: The maturity date is the end date of your CD period. When the term duration expires, savers can withdraw their savings without penalty.
Cash Management Account
Calling cash management accounts savings accounts might be a stretch. This type of account allows you to keep funds for future investments. Whether you plan on investing in a taxable brokerage or end up putting it in a retirement account. This account works great for people looking to have money on ready-to-make investments.
Cash management accounts are offered by online brokerages and online investment platforms. You can also find them at traditional banks as well. The funds that are deposited into this account with an online brokerage will normally get you a better interest rate than at your local bank.
Specialty Savings Account
This type of savings account is targeted toward people who have particular savings goals instead of just having an account to save the money that you don’t plan on using. These accounts are also targeted towards a subsection of people rather than goals. Different special savings accounts can be found at online banks and traditional banks alike.
Some of the types of specialty saving accounts include:
- Traditional and Roth Individual Retirement Accounts
- Student savings accounts
- Kids’ savings accounts and many more
If you have a specific reason for saving money, opening a specialty savings account may make sense. Just bear in mind that there may be limitations on when and how you might withdraw your cash in the future.
Although opening a savings account at your bank may seem safe and easy, there are some drawbacks. With an individual saving money in an account they miss out on larger interest rates of return that come from a high-yield savings account or certificate of deposit (CD).
You can open a savings account at most banks, credit unions, and online banks. The process is usually pretty straightforward: you'll need to provide some personal information and deposit money into the account. Once your account is open, you can start saving!
For deposits made in an FDIC bank or an NCUA credit union, your funds are protected up to $250,000 per depositor, per FDIC-insured bank, and ownership category. If you happen to have more than one checking account at the same institution, then your deposit is insured for up to $500,000.
The answer to this question depends on the type of savings account you have and the country in which you reside. In general, though, most savings accounts are subject to taxation. However, in the UK, you do not pay tax on your savings interest if you're on a low income.
Most savings accounts are paid interest monthly, but some may be more or less frequent. When interest is paid, the bank calculates how much you've earned based on the account's balance and the account's annual percentage yield (APY). The APY is important because it tells you how much interest you'll earn over a year. Once the bank has calculated your interest, they'll add it to your account balance.
An expected profit rate is the percentage of return that a business owner anticipates earning on their investment. This figure is important when making decisions about how to allocate resources and set goals. The expected profit rate can be calculated by subtracting the total costs from the total revenue, then dividing by the total revenue
‘Gross’ interest is the interest you earn on your savings before tax is deducted. ‘Net’ interest is the interest you earn on your savings after tax has been deducted. The main difference between the two is that gross interest is taxable, while net interest is not.
A high-yield savings account is a great way to boost the interest you're earning on your savings. With a higher interest rate, you'll earn more money on your savings over time. Plus, a high-yield savings account can help you reach your savings goals faster.
No matter what your savings goals are, there’s a savings account that can help you get there. Decide what you want to save for, then research and compare the best savings accounts until you find the right fit. Once you’ve opened your account, make sure to monitor your progress and adjust your plan as needed. With a little effort and planning, you can reach your savings goals in no time.
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