How Will I Earn the Most from My Savings Account?

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Recent research has shown that the number of pensioners throughout the United Kingdom is set to rise by as much as 40 per cent between now and 2039. While this date may seem like a long time away, the truth of the matter is that choosing the right type of savings account today will have a massive impact upon your financials status in the future. Let's take a look at some lucrative options to consider as well as the benefits associated with each. 

Internet-Only Cash ISAs 

Individual savings accounts are arguably the most popular options due to their nearly universal availability. Their main advantage arises from the fact that the funds are shielded from governmental taxes; allowing the account holder to earn more interest over time. However, one lesser-known fact is that Internet-based ISAs are associated with slightly higher interest rates. Check with your bank or building society to learn more. 


While accruing extra income via interest rates can represent a worthwhile option, let's keep in mind that this will normally take a great deal of time. This is one of the reasons why a growing number of individuals are choosing to allocate a portion of their savings towards investments. The good news is that there are a host of underlying assets to choose from such as: 

-Commodities -Treasuries -Stocks -Currencies (Forex trades) -Contracts for difference (CFDs)

Each of these is associated with its own set of advantages, so it is wise to speak with a professional to learn more. 

Pension Plans 

A managed private pension is another great alternative to carefully consider. There are several advantages associated with this type of pension. As these funds are overseen by am expert, you can rest assured that your money is in good hands. There are a wide variety of portfolios to choose from (depending upon your personal preferences). The low-cost nature of these programmes will help to ensure that any profits are maximised. Finally, there are a host of tax benefits to enjoy. 

High-Interest Savings Accounts 

As the name hints, a high-interest savings account provides you with more amenable rates when compared to a standard account. This is a great way to begin building a "nest egg" for later in life. Many individuals will set aside a certain amount of money each month to be placed within this account, so it is also a useful budgeting tool. The only potential downside is that you might be subject to higher withdrawal fees if you need to access these funds within a short amount of time. So, be sure that you possess extra liquidity in order to avoid such a scenario. 

If leveraged properly, a savings account can represent a powerful financial tool. The best way to avoid fiscal woes in the future is to begin planning ahead today. All of the methods mentioned above are extremely useful, so be sure to research each one in greater detail.

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