Building Society Rates - How to Maximize Your Returns

Many people have saved up over a long time to give themselves a nice nest egg. It is a real tragedy for them that the rate of interest is so low these days. What can you do to make the most of your money when building society rates are so unattractive? Read these Golden Rules and you will have a good idea of how to maximise your returns.

1. Always use your Individual Savings Account (ISA) allowance every year. This can build up to be a sizeable amount and the interest is tax free.

2. Make sure that your ISA is opened as near to the start of the tax year as possible. This gives you the greatest benefit.

3. Consider your spouse’s situation if you are married. Could you transfer savings between you if one of you is a non-taxpayer? That would give you more tax-free cash.

4. Check what building society rates are available if you open a telephone based account. These often pay a higher return without the concerns that some people have about internet based accounts.

5. Do not feel committed to using the local branch of your favourite bank. They may give you a warm welcome when you go in to see them but what rate are they paying you? Check out the return that you are getting against what you could obtain elsewhere and consider making a switch.

6. Some companies give you a slightly better deal according to how much you invest. Have you got several little amounts scattered around different organisations? You might do better by placing them all into one place.

7. Ignore the free gifts and added benefits that are marketed by some organisations. Concentrate solely on the returns that are available.

8. Do your research. It does not take long to find out the best offers that are presently around. A weekend, quality newspaper is a great place to start. They often have adverts from a wide range of places and a table summarising the current best buys.

9. Go through your old accounts, especially the ones that you have not used for a while. Financial institutions make a huge profit on many old, dormant, accounts that pay a very poor return. Do not let anyone profit from your savings no matter how small a figure it may be.

10. Be safe. Avoid the offshore deals and stay in the UK. You will, therefore, enjoy excellent protection in the event of a financial organisation going bankrupt.

11. Keep an eye out for special offers. Building society rates tend to be broadly similar amongst all of the societies. However, there are times when particular societies need to get more deposits in quickly. This might be just before their year end and they want to make their books balance, for instance. You can sometimes get an improved deal if you can spot an offer that might only be available for a very short period.

An easy way to find the best interest rates for savings accounts is in my regular email newsletter.