Sadly I suppose it’s only a matter of time before Stannah has to intervene in transporting Brucie from the top to the bottom of that treacherous looking staircase in Strictly Come Dancing. But it’s really fantastic that Bruce Forsyth has never truly stopped working – what a great role model. I’m not suggesting you work until you are an octogenarian, but why not take the example of Brucie and apply it to your savings? So, because you’re my favourites let’s investigate the merits and pitfalls of a savings account with an introductory (Brucie) bonus.
Now unless you’ve been incarcerated in Len Goodman’s care home for the last couple of years, you’ll know that interest rates paid on savings accounts have witnessed a dramatic decline recently. One way to maximise the amount of interest you get on your savings is to open an account that pays you a bonus on top of your interest rate. In fact, some of the best savings accounts out there at the moment pay a bonus, but beware: you need to play a good game to continue to get the best rate…
So, bonuses; how do they work?
Bonuses are great, but the reason they are great is because they aren’t permanent. Most bonuses on savings accounts only last for 12 months, at which point your bonus is whipped away faster than Craig Revel Horwood can say “Cha-cha-cha”!
Bonuses on savings accounts take two forms:
- Conditional Bonus. A bonus that is dependent on you behaving in a certain way; for example, not making more than two withdrawals in a year. If you don’t adhere to the conditions of the bonus it will be reduced or even lost completely.
- Unconditional Bonus. A bonus that will be paid regardless of how you operate your account.