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Sound as a pound
For centuries, money has become the main indicator of a person’s success. The more you have, the more successful you are. Well, that seems to be the popular opinion.
The loss of money or wealth can be a difficult problem to overcome. Many people, at some point in their lives, have had the ordeal of having their money either lost or stolen, and unfortunately, once it’s gone, it’s gone.
It’s a sad fact of life that some people will resort to a life of crime in order to gain personal wealth, and it is for this reason that you should ensure that your money and belongings are as safe as they possibly can be. Although your belongings can be insured and replaced, if your money is lost or stolen, it is irreplaceable and gone forever.
When you’re walking about, keep your money safe in a wallet or purse, and keep this safely tucked away in your pocket or bag. You need to make sure that wherever you keep your money, that it will not be easily taken from you without you noticing.
A bank or building society account is probably the safest place to keep your money when you’re not using it, although you could leave it with someone you know and trust. Most banks and building societies will even offer you money, in the form of interest, for keeping your money with them. So not only are you keeping your money safe, you are also getting more money in the process.
The interest that you are paid from a bank account will be quoted as a percentage (%). The main idea is to get the highest percentage of interest that you possibly can. The higher the interest rate, the more money you will get back.
Although the money you have in a bank or building society account is safe, the interest that you earn from it won’t make you rich over night. For example, a bank account that has an interest rate of 4% will only pay you £4.00 a year, providing that you keep a balance of £100.00 in the account for the full year.
Any interest that you receive on your savings will be referred to as the Annual Equivalent Rate, or AER. Any interest rate that is quoted as an AER will only be accurate if you do not add or withdraw money from your account part way through the year in question. The reason for this is that the AER illustrates what the interest would be if it was paid and compounded (added to the interest from previous payouts). Therefore, any deposits or withdrawals made part way through the year will affect the amount of interest you will receive once the year is up.
Disclaimer, Target Audience, Jurisdiction Last updated & checked: 30/03/2006