Should You Consider Opening a High Interest Savings Account in UK?by Malini Mathew Writer
Any financially savvy individual might know that it is no longer adequate only to save money. Inflation reduces the purchasing power of your savings with every passing year. So, rather than just saving, you should invest your money in such a way that you can earn risk-free returns, and the impact of inflation is reduced.
One of the safest and hassle-free ways to grow your money in the UK is by opening a high interest bank account. Here are some of the top reasons why you should consider opening this account-
1. Monthly Interest Income
As the name suggests, the high interest account offers a higher rate of interest as compared to standard bank accounts. With some banks, the interest rate can be as high as 0.75% AER. At the end of every month, the bank would credit your account with the interest income based on the maintained balance.
Moreover, you also have the option to receive the interest payment on an annual basis. This can be an ideal choice for anyone working on a long-term savings plan.
2. Start Saving with Only £1
With most different types of bank accounts in the UK, you require to maintain the account balance above a specific limit. You can be penalized if the balance falls below the minimum limit. But there are no such limits in the high interest account.
You can start saving and earning interest on as little as £1. The account will be linked to an existing account, and you can transfer any amount of money to your high interest account.
3. Withdraw Your Money Anytime You Like
Another top reason to consider opening a high interest account is it’s anytime and anywhere accessibility. You are free to deposit and withdraw your funds anytime you like. There are no limits or penalties on withdrawals.
With the help of this feature, even the funds that you don’t readily need can be invested so that you get to earn interest on the same. You can then easily withdraw your money as and when required.
4. Option to Set Up Automatic Savings Plan
If you regularly want to deposit a certain part of your monthly paycheck to this account, you also get the option to set up an automatic savings plan. With this feature, a fixed amount will be withdrawn from your linked bank account and get deposited into the high interest account every month.
If discipline is something that you generally struggle with when it comes to sticking to a savings plan, this facility of the high interest account can definitely help.
5. Open Account Online
UK residents with an existing bank account can easily open high interest savings account online. Once you apply for the account, the bank will automatically verify your details to set up a new account for you.
If for some reason, the bank is unable to verify your details, you will then be required to submit some documents like identity proof, address proof, etc. to open your account.
Save More and Earn More with a High Interest Account
A high interest account is one of the safest ways for people in the UK to grow their savings. You can deposit any amount you like and earn higher interest on the same every month. You can also easily withdraw the funds anytime you want without worrying about any withdrawal penalties.
Look for a top bank offering this facility so that you can apply for the account online and start earning higher interest on your spare cash.
Created on May 4th 2020 04:15. Viewed 278 times.