A Savings Account allows you to put away money that you would like to save for a purchase or expense. This type of account usually has a specified level of accessibility, ranging from instant access to fixed notice access which require a certain amount of notification before you can withdraw your money.
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.
Types of Savings 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.
Understanding and choosing a savings account
Guides to types of savings accounts and selecting the right account for you is available from:
A comprehensive guide to finding the top savings accounts is available at this link.
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.
Savings Tips
A regular savings calculator showing just how big your savings can grow over time is available at the following links:
Holiday Savings
Guides to saving for holidays and saving money on holidays are available at the following links:
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