High Interest Accounts

High Interest Accounts – You Need To Read The Small Print!

When looking into high interest accounts there are several things to consider.  To help you with your decisions we have detailed below the areas to review.

Minimum deposit

This is always a tricky one.  The banks want to be sure that they will still maximise their profits, so the better deal they offer you, the more of your money they want.  At least this is usually the case.  If you find that there is an exception to this rule, you should dig further into the paperwork.  There may be clauses which allow them to change your terms later, perhaps after twelve months or so.  Remember, if it seems to good to be true, then it is either not what you think it is or it is simply untrue.  Always stick with your instincts.

Accessibility

There was a time when the only way to get a decent level of interest was to have a postal account with a very long notification if you wanted to withdraw money.  This has changed a little, but the basic concept is the same.  Now they postal equivalent is the internet account.  There are a lot of benefits to having an internet account and you will find that most high interest accounts are now online accounts.

Commitment

A bank likes to get a commitment out of you.  If you go to open a checking account you will often be asked if your monthly salary will be going into the account.  Equally if you want a high interest account you may be asked to make regular deposits.  This may seem like a good idea, but you have to be sure that you are going to want to continue.  Should you change your mind or miss a deposit what are the consequences?  After all circumstances do change….

So you can get some really good deals on high interest accounts, but you have to be aware of what you are agreeing to.   It is certainly not advisable to part with you money until you understand the answers to the following questions:

• How much do I need to deposit to qualify for the high interest?
• When and how can I access my fund?
• What do I have to do to maintain my account?