Medium-Term to Long-Term Saving

Medium-term to long-term saving accounts usually offer higher interest rates, or guaranteed fixed-rate interest periods (see Interest Rates). They offer you the chance to save your money over an extended period of time, in exchange for favourable investment returns. As a result, you are usually limited as to how easily you can access your money. They almost never offer the use of a chequebook or an ATM, nor of other banking services such as arranged overdrafts, standing orders, direct debits and direct salary deposits.

There are several types of medium-term to long-term savings account options, each with varying degrees of 'risk'; risk refers to the possibility that your savings could reduce in value, say if investments perform badly: the higher the risk the greater the chance that their value could drop. Savings options with more risk associated with them include investments that are based on stocks and shares (see Investment and Saving: Stock-Market Linked Accounts). These investment options, whilst posing a higher risk to your savings due to the relative volatility of the stock market, also have the potential to increase your savings by much more than conventional savings accounts if your investments perform well.

For details of the types of medium to long-term savings accounts on offer, see

• Pension Investment
• Notice Accounts
• Regular Savings Accounts
• Fixed Rate Accounts