Savings accounts are not the most interesting or lucrative ways of making money but in our opinion essential for certain circumstances. The best time to have an savings account is when you have a goal of doing something in the near future, such as weddings, travelling, business ventures or even for a new kitchen. When you have a goal in mind then you want to save your money without the risk of losing it all. This is where savings account are handy, as you can store away some money aside every month and once you have reached your target then your able to achieve your goals with no risk and a little interest to compensate for your loyalty.
Saving accounts are probably the most basic way of investing. You put away your money in bank accounts flexibly, which you can take out at anytime or leave in the account for a agreed amount of time. The latter obviously giving you the higher interest rate but you will not be able to take your money out if you ever need too.
You really need to consider how much money you will be investing in saving accounts and how long you are willing to leave the money tied in to this account. This will determine the returns you receive. The positive point with savings accounts are that you can calculate how much return you will receive before even investing and you are guaranteed to receive it.
If you have a large amount of money to invest and don’t want to risk investing in other ventures then a fixed savings account might be the way to go. However if you have a small amount to invest and the near future seems uncertain then you are better off opting for the flexible saving accounts where, yes you will receive a lower interest rate then the fixed but you will have the flexibility to take out your money when you need too, without any commitments.