In the UK and most other countries, people are often confused as to which is the best way to save money so that it can grow as the years pass by. Obviously there are those that think that they may be able to do better acting on their own, perhaps investing any spare money they have on lottery tickets, in the belief that they will one day hit the big one and all their troubles will be over, or perhaps visit the race track and put their spare money on what they believe to be certainties or go to a casino where they think that they may one day, against all odds, be able to beat the house. Some of these people do in fact strike lucky but they are very few and allowing your future to depend on a gamble is not a very sensible way forward. That means that the majority of people, those that don’t gamble on the stock exchange at least, rely on banks to be able to afford them a way of saving that can benefit them in the future. Unfortunately though, if at one time, banks did do that, those times passed long ago. Today a banks number one concern is the bank, they are profit making businesses and if it comes to either them making a profit or you, the bank will take their profit every time. Basically, the banks take your money and gamble it either on the stock market or loan it out to businesses from which they can receive large amounts in interest payments. Although, in theory at least, this seems reasonable, what happens when the banks make a bad bet may not be. Obviously if the bank makes bad investments on the stock exchange or a business that the bank has loaned money to goes bankrupt, the bank loses money. Well, the bank should lose money but rarely does as they off-set any losses by taking it out of your interest on your savings. This is why a bank will usually offer you a fluctuating interest rate on your savings accounts; it gives them a way of reducing your interest to off-set their bad decisions.
Now though, there is a new breed of bank emerging in the UK. This new breed of bank can offer individuals a high interest savings account and they are able to do this by only accepting registration for accounts from individuals and not businesses which can be susceptible to failure, especially in these times of an on-going recession. The new banks conduct all their business online and so offer individuals easy access as they only deal with individuals, their savings department staff are all experts in individual savings accounts and can offer new account holders their expert advice as to which savings account is best suited to their individual needs. The beauty of these banks is that they offer fixed rate savings, meaning a saver knows exactly how much interest their money will make before they put the money into an account.