Savings Accounts

Savings accounts can take many forms; you may already have a savings account at your bank or building society. In general, savings accounts are a very reliable and flexible way to save. You make deposits into your savings account, you are paid interest by the account provider on the deposits you make, and thus your total savings increase from year to year. The amount of interest you receive will depend on how much money you deposit and the interest rate that the account provider has agreed to pay. It is currently possible to open a savings account with a high street bank and receive interest rates of between two and seven percent per annum, depending on the type of account you choose. The conditions of your account usually impact on the interest rate. You are likely to get higher rates if you agree to save a large sum of money, or agree to leave your savings untouched for a specific number of years. If you want to be able to withdraw your savings on demand and cannot commit to making regular deposits, your interest rate will suffer as a result. You may be advised to choose a current account with a generous interest rate instead of a savings account if your finances are unstable.

It is prudent to visit a few different high street banks and ask for advice on their best savings accounts, including interest rates, conditions, and advantages and disadvantages they offer. Compare the deal you would receive from each bank for a certain deposit value. Each bank will have trained staff who can help you to find the best account for your needs; you may need to make an appointment to talk to a savings advisor. Savings account offer a low-risk, easy to understand, flexible investment opportunity: as a result they will not usually offer you high returns. However, they are a sensible addition to your financial portfolio, offering a secure way to build up an additional nest egg.