High Savings For Young Investors
While investment returns are an elemental component of accumulating wealth they are neither the only factor, nor the most important for young investors. I would like to suggest that for college-aged individuals the most important component of wealth building is in fact the savings rate of the individual. Thus I encourage my peers to focus on saving more rather than reaching for extra returns (through excessive risk).
The first thing that people think of when they hear the word savings is often a savings account. While savings accounts are good and they are even better if you can find one that offers great rates, real savings depends on limiting what you spend and taking advantage of everything possible to save money. Here are 7 things you can do in your daily life to save money and take advantage of the savings rates your account offers.
Saving rates are determined by financial institutions on the basis of the volume of business generated and the total operational cost. Due to these reasons, the interest rates offered by Internet-only banks are much higher than the conventional banks. Traditional banks have to invest in the administrative costs that are utilized in day-to-day costs. With Internet-only banks such administrative costs are eliminated and these banks can share their saving with their patrons by offering high interest rates.
ICICI bank has great savings rates at present. Their High Save savings account has been voted the best buy by the money supermarket for its 2 and 3 year fixed bond. ICICI bank is offering a whopping 4.40% interest on its High Save account. You need to be able to save at least 1000 during the term of your choice. This is the highest rate that I have been able to find and if you can put up with having your savings locked away for a couple of years then it is an interesting one to look into.
The best savings rates at present can be found on long term fixed rate bonds: the average account now pays around 4%, despite having been as low as 2% eight months earlier. It's no longer difficult to find a great interest rate for a savings account, as the Internet guarantees a quick search can bring you the types of results you're looking for. So with a little work and little time you can in some cases double or triple your savings rates.
Article Source: FxTradingStock.com
About the Author
This article has been written by the author, Kedrin Famer. Should you require any moreSavings interestplease visit his Savings Rates resources!
by: Kedrin Famer
Total views: 29
Word Count: 403
Date: Wed, 24 Nov 2010
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