Long term Interest rates saving accounts means that your can’t access your money for a certain period of time which it is normally agreed before the transaction is completed; the benefit of this kind of deposit is that your money is secured during the stated period and the fact that it provides better interest rate that standard deposits; however, you must read carefully the terms and conditions; especially the possibility of taking out your money before the contract ends; most of the banks normally impose a penalty fee if this happens; therefore if you consider this could happen in the future then look for a saving accounts that offers more flexible terms.
Reasons to Save Money
Disadvantages of Savings
The best long term deposits saving accounts are normally those with a long term period of time; many of them between 3 to 5 years and with an initial minimum deposit of $500 to $1,000; however, they vary from one bank to the other. Also, in order to discourage you to take out their money invested with them they might impose a large penalty. The return on investment might not even be as good as expected if inflation rates are higher than the interest rate paid; however, more and more index linked saving accounts are available in the banking sector nowadays; they normally match the official interest rate plus an extra percentage; which ensures that your money grows each year even when the cost of living increases.
Benefits of Term Deposits
Many banking and finance institutions offer an easy configuration of options that can be adapted according to your particular circumstances; as a general rule you will be able to transfer money online as well as make regular deposits to increase your investment and the possibility to access online saving bank accounts. The process is becoming easier by the day although regular checks to avoid money laundering are now a routine exercise. If you already have an account with the institution you will probably be able to open a long term saving accounts online, transfer the money from your current or saving accounts and select the period of time; the rest is easy, sit down and wait for your money to grow over time.
At the moment the best institutions for a fixed term saving accounts in the United States of America are ING Direct, Citibank, Bank of America and Chase and in the United Kingdom the best ones are The AA, Aldermore and the Post Office; although you must check the terms and conditions as they change regularly. We strongly advice you to start a new contract once the period expires – many of them are renewed automatically if you don’t make the claim as stated in the contract and some of them offer terms that are not very favorable for the customer.
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