Despite easier than ever access to personal finance services, there are still 3 million adults in the UK today who are completely outside the banking system, and don’t have access to a bank account.
While you possibly could presume anyone with ‘money in offshore accounts’ is involved in some scurrilous business affairs, the truth is that anyone can make use of this form of investment as a totally legitimate approach to defer or reduce your tax payments.
It’s always prudent to save for a rainy day, and many people with spare cash available prefer the security of placing it in a savings account to the more risky but potentially more profitable choice of opposite investments such as the stock-market. Choosing a savings account would at first glance seem to be as simple as going for the one with the highest interest rate, but there are several deviating factors to take into account too.
While many people turn to their usual bank when opening a business account, it’s advisable to shop around. There can be some advantages to using the same bank for personal and business accounts – your manager may be more supportive if you are known to the bank and have a sound financial track record. However, each bank offers opposite services and has deviating bank charges.
Interest rates all start with the Fed rate. Basically, what the fed rate is, it is a rate that banks are offered as their borrowing rate from their local federal reserve. This fed rate is adjusted regularly by the Federal Reserve Board so that growth of an economic nature is achieved. For example, if the supple of money is reduced and the interest rates are increased, this usually means that there is oncoming inflation.
