If you want to put money away on a regular basis, then some accounts will reward you with a higher rate of interest – but often this is fixed for a limited period. The important thing to realise if you choose an account with a fixed interest rate for a year, and a limit on how much you can put away each month, is that you will only receive the ‘full’ amount of interest on the initial deposit.
For example, let’s say you can get 6% interest for a year and you can only put away a maximum of £120 a month. For the first month’s deposit, you will get the full 6%, but the deposit in the second month will only get 11/12ths of the 6%, the third month 10/12ths and so on. This means that, ultimately, you will receive significantly less over the year than the headline rate that made it an appealing account in the first place.
However, you do not need to worry about getting the best interest rate any longer. MyMoneyDiva has teamed up with independent and unbiased whole of market accounts monitor Savings Champion, which watches more than 4,000 accounts so you can get the best rates without the hassle. Sign up to our free Rate Tracker tool, and never get less than the market-beating rate again.