A savings account is not only a safe place to keep our money: it also allows us to earn money on our savings in the form of interest. The interest rate, which dictates us how much we will earn on our savings, is linked to the Bank of England's base rate. Interest earned will usually be subject to income tax, but it is possible to save tax-free if we choose to invest in an ISA. Additionally, savings accounts can enable us to manage our money more efficiently and save for specific goals such as a car, a home, or our retirement. The security of a savings account enables us to develop long-term financial plans. The main benefit of keeping our money in a savings account rather than a current account is that savings accounts offer more favourable interest rates on our account balance.
We may even be offered a savings account which pays bonus interest rates on high balances in addition to a regular interest rate. Such benefits are often offered to new customers or customers who agree not to make withdrawals from their savings account. This is especially true of online savings accounts, which benefit from lower running costs than their branch-based counterparts and can afford to offer quite generous interest rates .And for further information we can take help from (online savings account). Learn more about advantage of saving accounts
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