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Set yourself a 2013 savings goal

Set yourself a 2013 savings goal

Category: Savings

Updated: 17/12/2012
First Published: 14/12/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

As the year draws to a close some of us will be thinking of making plans and resolutions for next year.

Setting money aside each month, whether it be for a wedding, a new car or the holiday of a lifetime, can go a long way to giving you a sense of accomplishment.

Saving also gives you the peace of mind of knowing that you won't be left with outstanding debts.

A wide range of accounts are available if you are looking to set yourself a savings goal over a short term.

Fixed rate bonds

Fixed rate bonds can be a great way to save over a set period. These accounts tend to disallow early access to money so it remains untouched for the duration of the term.

A handful of three-month bonds are available, with the 3 Month Fixed Deposit from United Trust Bank heading the market with a competitive rate of 1.55%.

Investments range between £500 and £500,000, although further additions cannot be made.

The 6 Month Fixed Rate Bond Issue 5 from Shawbrook Bank pays a competitive rate of 2.00% on its maturity.

Investments range between £5,000 and £2 million and further additions can be made whilst the issue remains open. Early access is not allowed, however, so you must be willing to lock your money away for the duration of the term.

If you are looking to lock your money away for a slightly longer period and have funds of £50,000 and over, then the Hi Return Fixed Deposit from State Bank of India pays a monthly rate of 2.23% over a nine-month period.

You must open or hold an existing State Bank of India savings or current account to be eligible for this rate and have a minimum deposit of £50,000. Early access and further additions are not permitted.

State Bank of India also offers the Hi Return Fixed Deposit over a one-year period at 2.50%.

Currently sitting at the top of the one-year bond market, this deal requires investments between £1,000 and £1 million. Further additions and early access are not allowed and, as with the nine-month bond, a new or existing State Bank of India savings or current account must be held.

Notice accounts

Notice accounts offer a degree of flexibility when it comes to accessing your money.

Unlike bonds these accounts have variable rates and allow you to dip into your funds on the premise that you will give your provider advance notice before doing so.

The Reward Saver from Post Office pays 2.25% on its anniversary including a bonus of 0.75% for twelve months.

You must invest between £500 and £2 million and give 30 days' advance notice prior to accessing your money. One notice-free withdrawal can be made at a time and additional early access is subject to 30 days' loss of interest.


No notice accounts

No notice accounts may not be the first type of savings deal that springs to mind when planning ahead financially.

However, Saffron Building Society offers an easy access account designed specifically for those with a savings goal.

The Goal Saver (Issue 7) pays 1.80% on an annual basis and requires investments between £10 and £2 million. No advance notice is needed to access funds, although you must state your savings goal upon opening the account.

As well as the Goal Saver account, Saffron Building Society also offers the Wedding Saver Account (Issue 5) and the Car Saver Account (Issue 5) both paying a rate of 1.80% for investments between £10 and £2 million.

What next?…

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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