Investing

With interest rates so low, and likely to go lower, maximising the return on day-to-day savings is essential. As a general rule of thumb, rates from online accounts offer the best option.

But in order to get the most out of an online savings account, pick the one that suits you best, rather than the one with the highest interest rate.

Minimum balance required

Ask the financial institution whether there’s a minimum balance required to receive the rates advertised. Whilst the offer might look good on the surface… “8.10% pa with no hidden catches”… you may just find that you’ll need a minimum balance to get that rate of return.

Work out what your average account balance is, to see if it’s a good fit, because the interest rate will vary. Basically, the more you have in your account, the higher the return will normally be.

Hidden Extras

Check what the fees are for extras like cheque books or cards on the account, and whether there are restrictions on how often you can transfer out of your account. It’s these hidden extras that can add up at the end of the day.

Check the ongoing rate

Ask how long you’ll receive the interest rate for. Some accounts will only offer the headline rate for 12 months, and then give a lower rate after that time.