Medium Term Savings Accounts Could Be The Savings Vehicle You’ve Been Looking For!
Saving for unexpected events is something that every UK consumer needs to think about. Even if things are definitely going well for you, you really need to make sure that you start looking at all of the different things that can actually go wrong. That’s not something that we say to be touchy and dreadful — we really think that far too many in the UK are letting their savings go by the wayside. That’s something that really shouldn’t have to be that way, but you need to know that you can always change your life at any point. You might be feeling a little embarrassed that you have waited so long to save money. Don’t worry about that — focus on the moment at hand! There is plenty of opportunity to save plenty of money in the future, so even if you don’t start right away you can still catch up, so to speak.
Fixed term savings can come to you in a variety of different ways. You might want to look at investing in the money market, or you might want to go with bonds that last from 1-2 years. Either way, you have a lot of different directions that you can go.
You will want to make sure that you are looking at how long you have to lock the money in. If the money isn’t completely liquid, you might have trouble getting things done at the last minute. It would be far better to really make sure that you have the time to start thinking about how you want to access your money. If you are trying to save up money for a very specific purpose, then you will be able to go ahead with a medium term that is 1-2 years. On the other hand, if you know that you really need to have better access to your money, then it’s all about making sure that you will be able to go with an account where you only have to hold the money for 30 days before it gets released.
The interest rate is obviously going to favor the situation where the bank holds onto your money for a longer period of time. It’s to compensate you for the time you’re parted from your money.
Having a strong financial blueprint in place is going to help you make this decision easier. Do you want to save up for a great holiday next year? Putting the money where you can’t touch it might be the best idea.
It’s also important to realize that you don’t have to try to save just for a rainy day. You can also save for a great holiday, a great car, or even start putting the deposit down on a home. New baby on the way? This is a great time to start saving as much as you can.
Keeping all of your options often can lead to great things, and a medium term savings account could definitely be the savings vehicle that you’ve been looking for!