Securing good credit in today`s economy is certainly not easy. Banks have become more circumspect of borrowers and, conversely, borrowers have become more wary of banks. Finding good sources of credit in the current economic climate requires considerable effort, but it is by no means an impossible task; customers can, for example, read about the Virgin credit card at Moneysupermarket.com, which supplies a broad range of financial services. Provided below are several tips for choosing a good personal savings account.

Saving money is the cornerstone of prosperity. A proportion of an individual`s disposable income should be invested or placed in a savings account at as early an opportunity as possible. Personal savings accounts work by ensuring that money, upon which interest is usually applied, is stored in a safe, secure environment where it can mature over time. Unfortunately, it is easy to lose sight of this fact.

Many people use personal savings accounts as they do their regular current accounts; furthermore, many banks have failed to secure the money held in certain types of account during times of economic crisis.

With all this in mind, it is necessary to consider various factors when choosing a personal savings account. The most obvious consideration is the rate of interest applied to savings. Most customers cannot expect to qualify for a lender`s highest interest rates, as these are usually only applied to very large account balances. Ordinary savings accounts might offer percentile interest returns of up to 4 per cent AER (annual equivalent rate.) AER describes how much interest will be earned on a savings balance over the course of a year.

Clearly, the higher the AER, the higher the interest. Personal savings accounts, however, are not just about interest rates; as mentioned above, interest rates only become valuable (that is, truly valuable) on especially large balances. Savings accounts are primarily intended to provide a secure place in which to reserve money. The level of security offered by a lender, therefore, ought to be the chief concern of customers.

Personal savings accounts should be insured to the tune of at least $250,000 under the terms of the Federal Deposit Insurance Corporation (FDIC). Some personal savings accounts, however, are bundled with other types of financial product that are not covered by the FDIC. Annuities, stocks, bonds, mutual funds and life insurance policies are excluded under FDIC terms, so it is essential that a personal savings account is nothing more than a personal savings account.

Access to savings is another important consideration. During times of hardship, people may be forced to dip into their savings for one reason or another. Some lenders impose limits on the extent to which customers can access their money. Generally speaking, a customer should seek an account that provides 24/7 online access, telephone support and no limit on withdrawals.

Finally, hidden fees must also be considered. Many banks and lenders charge for withdrawals or introduce interest penalties. Ideally, these lenders should be avoided at all costs because there are plenty of other financial institutions that offer no hidden fees or penalties. Likewise, the customers ought to consider balance limits – both in terms of the maximum that can be saved during a calendar year and the minimum required to open an account.

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