Who doesn’t dream of having their own apartment? The dream does not have to be too far fetched if a good savings account can be taken advantage of. To find the best possible options, it is wise to take a close look at various choices and the benefits they offer in terms of rates.
At present, individual savings accounts, ISAs for short, offer AERs that are among the best savings rates on the market. The fixed term ISAs, taken out for periods of 12, 24 or 36 months and above, have rates rivalled only by some of the better fixed term bond options.
Take for instance the highest rate of 3.3 per cent currently being offered on a 12-month ISA. The minimum investment here is £100 and withdrawals are not permitted. The highest fixed term bond over one year offers an AER of 3.45 per cent, with an investment of a minimum of £50,000.
For someone on a comparatively low budget, the ISA is certainly the better choice. The same principle basically applies to the longer terms as well. While the bonds offer slightly better rates, they typically require much higher initial investments.
The best ISAs currently available are those on the longer terms, with the highest rate of 4.4 per cent being provided on a five-year term with a minimum deposit of £500. In comparison, the best five year bond with the same initial requirement offers 4.25 per cent.
Naturally, both requirements and benefits vary greatly between the varying available choices, as well as from one bank to another.
In the same way, personal circumstance will vary, and while one individual will be able to take advantage of excellent rates because they can spare large amounts at any given time, another person may have to tread a little more carefully and opt for an account with lower requirements.
This is why it is so very important to closely look at and compare various opportunities with personal circumstances in mind before making a firm decision on how to save.
