Individual Savings Account or ISA is previously known as PEP and TESSA. This is the government’s way of encouraging individuals to save up. Who would not be enticed to open an ISA when it provides tax free incentive so that you can save up without worrying about paying taxes. With ISA you can save money faster.
To get the best ISA rates out of the many banks and other related institutions that offer cash and stocks and shares, then it is best to compare and decide which one fits to your liking. An individual is allowed to invest £10,200. With cash ISA you can invest up to a maximum amount of £5,100 and the remaining amount to stocks and shares.
Santander, Halifax, Northern Rock, Chelsea, and Nationwide are some of the companies with the best cash ISA rates. Many banks also offer great savings accounts interest rates namely Ultima Bank, Choice Financial, Bank2, Dollar Bank Federal Savings, AmericaNet Bank, Washington Savings Bank, Customers Bank, The Palladian Private Bank, SFGI Direct, Quantum National Bank, Gogebic Range Bank, and SmartyPig. There savings account interest rates range from 1.34% to 2%. There is also that other type of account existing in banks that generates income which is checking accounts.
Interest Bearing Checking Accounts
This type of account generates returns depending on its remaining balance. Given that the minimum maintaining balance requirements for interest bearing checking accounts are very high many suffer from fees charged by the bank when the balance drops below the minimum limit. Although the interests with checking accounts are fairly low compared to regular savings account, it provides great liquidity that’s why many individuals still choose to invest on such.
Know that interest rate is inversely proportional with liquidity. When liquidity is high, the interest rate is low. This account gives check writing privileges to the holder and is very suitable to individuals with several thousand dollars in there wallets that are of no significant use to them for the time being.
IRA Savings Account
We know that IRA’s are designed for retirement and not as source of emergency funds so an IRA is not best suited for a savings account although under special circumstances this is allowed. An IRA savings account has no minimum balance requirements, and no early withdrawal penalties. This account is subject to terms and conditions of the Individual Revenue Service (IRS) as it is still classified as an Individual Retirement Account (IRA). Its interest rates are comparable with a regular savings account.
Instant Access Savings Accounts
If you want your money in the bank to always be at the ready whenever you need it then an instant access or no notice savings account is the one for you. This allows you to withdraw money from your account anytime without paying any fees. Speed is the only difference between an Instant Access Account and a No Notice Account. With Instant Access Account as the name suggests, your money is available for you instantly while in a No Notice Account there could be some time delay. You can use the internet as your reference in finding the best instant access savings accounts and no notice accounts.
While you are still young it is best that as early as now invest on your future. Several options on saving up and getting significant returns in the long run are available at your disposal. So be wise. While you still have the funds and resources, grab the opportunity.