When Are the Best Times to Open a Savings Account?

investment tips

There are various times in your life when it will make more sense to open a savings account than others. Even if you think you have little money to spare, there can be other factors at play that make it the optimum time to consider opening a savings account. As long as you have the motivation and can budget to make monthly contributions, no matter how little or large, then doing so now could be ideal.


Educate and Help Your Kids – An easy and effective way to teach your children about the importance of saving over spending is to open a savings account for them. Obviously only do this when they are at an age where they’ll understand the benefits; later primary school or early secondary school years can be best. There are many banks that will offer savings accounts designed for youngsters, sometimes including a piggy bank to help encourage them to not spend all their pocket money at once.

Interest Rates Are High – When borrowing money, a low interest rate is best, but for savers it’s the opposite. If interest rates receive a hike, then it will be a good time to seek out an attractive savings account. You will have two options, either a fixed or variable rate. Usually going for a fixed rate is the safest option, especially if interest rates are predicted to fall again in the near future. But a variable rate can offer better returns if interest rates do continue to rise.

Preparing to Buy a House – Buying a house is a massive investment and therefore making the most of a savings account is advisable before you start thinking about it. A Help to Buy ISA is a good option, as the government will boost your savings by 25 per cent (with a maximum bonus you can receive of £3,000). So, for every £200 you save you get an extra £50 on top, as long as all the terms and conditions are met. You can also use other savings accounts to boost the total amount you need for a deposit.

Planning for Retirement – Hopefully you already have some kind of pension plan in place, whether it’s through the workplace pension scheme or a private one. As you get older and the years until you retire become fewer, a savings account can be useful for making your work-free years more financially comfortable. Set a goal of how much you’d like to save and open an account that can best support this.

Throughout all stages of life there are many good times to open a savings account. If you’re approaching one of these, consider the options available to improve your financial situation.

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