Finding the perfect gifts and saving wisely

There are times when a very special gift has to be found. This may be a special gift for a loved one, or it may be a gift to present to an individual as a special award for services rendered within a corporate setting, for example. In any case, a gift will have to be carefully considered for it to suitable for the recipient. Their interests and personal preferences will have to be considered carefully in order to prevent disappointment.

A lady who cannot stand having to carry a handbag around - and they do exist - would not appreciate being given even the most fashionable, expensive handbag on the market. In the same way, an employee with no interest whatsoever in DIY projects would not find a tool of any kind amusing; no matter how highly an enthusiast would rate it. Giving a horse lover a gift involving something revolving around horses, on the other hand, would go down a real treat.

Selecting the right kind of savings account equally demands careful thought and will require a lot of comparison between available options. This is particularly important when considering long term savings. Naturally, most people will look for opportunities to invest in high interest savings. Which choice will ultimately be the right one will depend on the purpose of these savings and the individual's circumstances.

For investments made on a lower budget, for example, the best possible rates and features are currently offered by ISAs. These accounts carry an upper limit on what can be placed into them in order to remain tax free, which is one of the main advantages of these options.

The best AERs offered here range between three per cent on one-year terms and 3.75, four and 4.5 per cent of two, three and five-year terms respectively. Minimum deposit requirements for these particular examples are £500 for the one, two and three year choices, and £100 on the five year term.

Another excellent choice is to go for savings bonds. Rates here vary not only with the term time, but also with minimum deposit requirements. A five year bond with a minimum investment of £50,000, for instance, will offer a rate of 4.8 per cent, while the same term with a deposit of £500 will offer 4.4 per cent.

Over three years, the best rates are 4.3 per cent with a deposit of £50,000, or 4.1 per cent with an investment of £500. It should be noted that withdrawals are not permitted with any of these choices. In addition, there is no tax exemption on bonds. It is clear that for an investor on a lower budget, the tax-free choices may be of more benefit in the long run. For those wishing to invest high amounts of money, though, bonds will definitely offer the better opportunity to earn high interest on their capital.

Investing in savings for children, perhaps towards higher education, or maybe simply to present them with a good sum when they reach the age of maturity, also opens up a range of different opportunities. While it is, of course, quite possible to save up for this with one of the above options, there is also a range of interesting offers specifically designed for this purpose.

A one-year term children's account with a minimum deposit of £10, for instance, currently offers an excellent rate of 4.6 per cent. An option maturing when the child reaches the age of 18, carrying a minimum deposit of only £1, offers an AER of 2.9 per cent. Junior ISAs, which are not available if the child already has a trust fund, will mature when the child turns 18 and the best rates currently offered here are set at three per cent.

To earn a child under the age of 16 interest in savings, it is possible to have instant cash accounts that offer excellent rates of up to three per cent with a low minimum deposit of just £1. The child can add or withdraw funds as and when required, allowing them to learn to save wisely without taking the opportunity to use some of the accumulated funds away.

Naturally, all options should be investigated and carefully compared, taking all the different factors into consideration. By examining the benefits, as well as the terms and conditions of each available choice, as well as comparing these findings to personal circumstances, budget, etc, it will ultimately be possible to find the most appropriate solution to personal needs.

In the long run, taking the time to make the selection carefully from the word go will allow anyone to make the most out of their investment.