Use the right bank accounts to save for a big event
Tuesday June 3, 2008
Bank accounts all offer different advantages in order to attract new customers, but some bank accounts offer better deals for short term saving than others. When looking for bank accounts that you will use to put savings for a big event in, such as an 18th birthday party or wedding, be sure to check for introductory offers that could help you build up savings at a faster rate.
When trying to make the most out of savings accounts, you will want to start moving money around when it's advantageous to do so. Perhaps you don't have enough money to start bank accounts with whichever bank is leading in ongoing savings interest rates at the time, but you may be able to build up to this amount faster by taking advantage of another bank's promotional interest rate for new customers. If you consider using this strategy to maximise what savings can earn you in bank accounts, don't become tempted by the possibility of jumping between promotional offers. Usually banks place restrictions on previous customers so that they cannot benefit from promotional offers too often. You could easily become stuck on an awful interest rate in the near future if you switch bank accounts more frequently than is wise. The other disadvantage is that with many bank accounts, especially the highest interest ones, you will probably miss out on interest in the month that you transfer funds.
Once you have the money for your big event, be sure to budget it correctly so that you do not overspend. Just because you have savings doesn't mean you have to spend it all. Plan your event correctly and you could cover it as well as having started an excellent saving habit in high interest bank accounts.
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