Most important thing in savings is to make sure it is safe! Despite of period and purpose of savings Safety comes first. Below are some methods to make sure your savings are protected:
Inflation has a negative effect in the savings. Time Value of money is lost due to inflation. To over come this invest in instruments which earns best interest for your savings.
• Watch out bonus rates
There are many banks boost the interest rates for a temporary period to attract more deposits. These bonus rates end after the specified period and savings will lesser interest after that period. Make sure you have a note of these end dates and re-deposit in a savings appropriately.
• Foreign banks
In case you have savings in foreign banks you should check and know whether those banks are safe and licenced to carry out banking operations. Have the peace of mind after you deposit your hard earn money in a safer bank.
• Safeguard from tax
In most of the countries interest income from the savings is treated as a form of income which is taxable. Diversify your savings so you don’t get hold to Taxable income category. If you are not sure get an investor advisors help to plan out your savings.
• Deposit appropriately and Evade savings charge
Select the savings accounts based on the need of you. If you want to withdraw in a short term deposit appropriate for the period. Than deposit in a longer period tempting for the higher interst rate. Keep in mind when you deposit for a longer period and you want to withdraw before the due date you won’t get the promised interest and there will be penalty charge for pre mature withdrawal.