Everyone understands the concept of interest, but it can still often be overlooked. Some people may feel that their personal savings are so meagre that interest does not really apply to them, but this is not always the case.
As such, here are a few things you may want to keep in mind. Hopefully this should encourage you to get the best interest rates possible (although not at the cost of anything else) rather than just staying complacent with what you current have.
Every Little Counts
Given today’s economic climate, you never know when you’re going to need some extra money. Even the smallest amount in a bank account will eventually accumulate interest. Leaving this alone will result in something more profitable, no matter how big or small. This is a case of letting time do the work, although the bigger interest rates will make it faster or offer better results. As the saying goes, if you look after the pennies, the pounds will take care of themselves.
Likewise, this can also act as a useful way to encourage saving. Saving on its own can often be hard to rally behind, as it involves leaving your money alone and avoiding unnecessary ways to spend it. Yet interest adds an extra purpose and benefit to saving; put in a little here and there and you can end up with an impressive sum.
Additionally, with interest rates working as a percentage of what you’ve put into your account, it creates an effective temptation and form of encouragement to save as much as possible. Saving yields more in the long run which, as already stated, can always help when it’s least expected.
These are just two ways, but they should hopefully highlight the importance of savings in a way other than just a form of growth. Likewise, they should also demonstrate how a better interest rate makes for a better situation and, as a result, you should always strive to get some of the better rates for yourself as it can always make a difference.
If you don’t have savings, and you need to deal with an emergency quickly, a same day payday loan could be one way to retain some stability. They’re short term, high-interest loans, so it’s important to repay them quickly, but they’re designed to give you a little breathing space until you next get paid.