Savings Accounts

If you want to try to save money and instant access to your money is not necessary then a savings account could be the best thing for you. A savings account will give you a higher interest rate on the money you deposit. However, with a savings account, your money will not be as easily accessible as with a current account.

Some savings accounts will even require you to give notice for example, a month, before withdrawing money from the account. In exchange for this, you may be offered a higher interest rate.

There are different types of savings accounts on offer:

No notice accounts tend to offer slightly better rates than instant access accounts. The account is usually run via telephone and/or post, and your money can take a couple of days to reach you by cheque or transfer.
Internet-only accounts costs to the provider are low because their is little paper work etc and so they can often provide lower rates. Should you prefer being able to talk on the phone then you should check to see if this option is available to you. Understand how you are able to get your money out should you wish to.
Notice accounts usually pay you higher interest on the basis that you give notice for any withdrawals. It is usually the case that you agree to wait between one and three months. Many Notice Accounts do offer instant access, subject to an interest penalty.
Fixed rate accounts or savings bonds tie up your cash until a specified date can secure the certainty of a fixed return. Accounts can usually be opened with between £1 and £5,000. As with notice accounts, early access to capital usually incurs an interest penalty.