Tue, 30 Jul 2013 18:15:00 GMT | By Felicity Hannah, Contributor, MSN Money

How to choose the best savings accounts

Comparing the best savings accounts isn’t just about finding the best rate. Here’s what you need to know…

Coin being dropped into piggy bank (© Image © Getty Images)

By comparing the best savings accounts and choosing the right one for you, you can be sure your money is working as hard as possible. But how do you know which is best?

It’s not just a question of finding the best savings rate and moving your money there, you need to be sure that the account itself suits your household finances.

• Learn more about the best savings rates

The best savings rates for your money

Many of the top-paying savings accounts require you to deposit a large lump sum, or restrict your access to your cash.

The best savings account for you is one that suits how you save and what you’re saving for. After all, if you’re saving an emergency fund then you don’t want to lock it away, even to earn the best rates.

Have a think about how you plan to use your account so you can decide whether an ISA, a fixed rate bond, a regular saver or just an easy access account is most suitable, and then compare the best savings accounts for you.

There are even Sharia’a compliant accounts available, such as the BLME four-year Premier Deposit Account, which offers an anticipated profit rate of 2.4%.

Don’t settle for less than the best

Once you’ve chosen the right account, it’s essential that you compare different providers so you can be sure of getting the best savings rates.

For example, ICICI Bank is paying 1.75% variable on its HiSAVE SuperSavings Online Account, whereas many instant savers are paying just 0.5%.

Compare rates to find the best savings accounts for your money.

• Compare leading savings accounts now

12/08/2013 15:17
2.4% are you having a laugh? They will be lending multiples of what you "invest" at four times that rate.

I'd rather take it out in cash and keep it under the bed.

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