Choosing a Savings account
All banks and building societies offer Savings Accounts – these accounts are for putting away money that you would like to save for a purchase or expense.
This type of account will usually provide a passbook or a card to allow you to access your money. If you have passbook - every time you use your account for a transaction a record will be made in your passbook, including interest payments. Savings accounts are deposit based – meaning you will usually get back all the money you put in plus interest, this type of account generally pays higher interest rates than current accounts.
The are a number of different types of saving account, which have differing levels of accessibility. Some accounts are instant or easy access. Some are fixed notice access, which will require you to provide your bank or building society with 60 or 90 days notice before you can withdraw money without a charge.
A Deposit Account – pays higher interest than current accounts and is usually instant or easy access.
A Cash Individual Saving Account (ISAs) – has a limit to how much you can pay in, but pays a higher interest than a normal deposit account and is not taxed. These accounts are usually instant, easy or fixed notice access. For more details on ISAs, follow this link.
A Guide to choosing a Savngs A/Cs is available from bankrate.com/uk.
For advice on choosing and opening a Savings Account, click here.
To compare savings accounts click here.
Financial Services Compensation Scheme
All cash in UK-regulated banks, building societies and credit unions is covered by the Government-backed Financial Services Compensation Scheme (FSCS).
Under FSCS rules, if your provider goes bust, you currently get up to £75,000 per person, per financial institution within seven days (£170,000 for joint accounts).
More information is available here.
Eight tips on how to start saving and get into the savings habit are available from MoneyHelper.
A regular savings calculator showing just how big your savings can grow over time is available at the following links:
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