| Savings Account
If you should be lucky enough to
have spare money or if you’re saving up for something
then it makes sense to make the most out of that money.
The compare savings account tool compares over
1200 savings accounts and takes into account the type/s of
account/s you are looking for and the amount of money you
are looking to invest, whether a lump sum or monthly amount.
It then lists the accounts available sorted by interest rate
and offers the chance to apply for an account online.
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Savings
Checker |
| The savings checker tool
allows you to compare your current savings account
with the highest interest saving accounts in the
market place and calculate exactly how much extra
interest would be generated. |
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Saving Accounts
Current accounts will only usually
offer low interest rates, about 1%-2%. Savings accounts offer
a far better interest rate.
They are however far less flexible
than current accounts and you may need to give notice before
making any withdrawals. This lack of access to money can however
help you save but if you will need easy access to the money
then you’ll need to do slightly more shopping around
to find the best account for you.
Some savings accounts will pay interest with
more regularity than others, so try and find an account that
makes payments at least once every three months. A great way
to save is by setting up a standing order paying a set amount
into your savings account on a regular basis.
A savings account can come in a many different
shapes and sizes and can have different ways of accessing
them such as web based, phone banking and by post. Types of
savings account:
Easy Access Accounts
Easy access accounts provide access to your savings
instantly or within a few days without a penalty. Due to this
flexibility a lower variable interest rate will be offered.
These accounts are particularly suitable as an emergency fund,
providing easy access, a way to start saving and some accounts
offer a cash card facility. A bonus scheme may be offered
if the numbers of withdrawals made are within a specified
limit, for example a maximum of 2 withdrawals per annum. The
minimum investment is normally £1.
Notice Accounts
Notice accounts generally pay higher rates of
interest and require notice to be given before withdrawals
can be made, typically 30, 60, or 90 days. Savings can sometimes
be accessed immediately subject to a withdrawal penalty. The
interest rate is variable and the minimum investment required
is often several hundred pounds.
Bond or Term Accounts
Bonds or term accounts will pay more competitive
rates, they require your investment to be tied up for a specific
period of time and withdrawals before the maturity date are
often not permitted. If withdrawals are permitted without
notice there will sometimes be penalty charges. The interest
rate is often fixed and the minimum investment is generally
£1000 or more.
Regular Savers Accounts
These accounts are to encourage regular savings;
they require a commitment to invest each month. Many regular
saver accounts will not permit lump sum investments. Access
to savings varies, some accounts may provide instant access
or require notice and others may be fixed term. Generally
regular saver accounts place a restriction on the number of
withdrawals allowed each year. Interest rates are variable
and a minimum and maximum investment per month is sometimes
stipulated, these vary from between £10 - £20
min and £100 - £2000 max.
Individual Savings Account (ISA)
Its worth noting that you pay tax on any money
you save. This is taken out of the interest before its paid
to you. However since April 1999 you have been able to invest
money into individual savings accounts (ISA’s). They
allow you to save a certain amount of money each year without
paying tax on it.
Click Here to compare find out more about individual
savings accounts (ISA)
Childrens Savings Account
Children's Savings Accounts offer you the opportunity
to invest your child's money in a way that is easy to understand
and manage for your child. It allows you to encourage your
child to invest their pocket money, gift money and any other
cash received in one of these popular accounts, and to benefit
from earning interest on their savings balance. The minimum
investment is normally £1, and be sure to enquire about
the starter hamper, bonus gift, discount pack or other starter
offers available from the savings branch upon successfully
opening a new Children's Savings account.
Click Here to compare and find out more about
childrens savings
accounts
Offshore Savings Accounts
Offshore savings accounts can allow you to place
your money where the tax man can't get at it.
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