Current Accounts

Almost all major banks offer Savings Accounts as do building societies and National Savings and Investments. Most will offer a variety of Savings Accounts with the main differences between account types being the minimum amount of money required to keep the account open, how quickly you are able to access the money, and the type and rate of interest paid to you.

Savings Accounts usually give you a higher rate of interest as compared to a Current Account provided, however you will usually be restricted in how much money you take out and how soon you can access it after depositing.

It is worth checking on your Savings Account regularly as interest rates do change. It is also worth asking if you will incur penalties or lose interest if you close the account.

Most Savings Accounts WILL come with:

  • Cash card
  • Interest paid on money in the account, usually at a low rate
  • Phone and/or internet banking

Most savings accounts will NOT come with:

  • Debit card
  • Credit Card
  • Cheque book
  • Direct Debit and standing order facility
  • Overdraft

You can use most Savings Accounts to:

  • Pay in cash
  • Pay in cheques
  • Withdraw money from your bank or building society branches (some restrictions will normally apply)

Banks and building societies offer a variety of Savings Accounts, the most common being:

  • Easy Access - Requires a minimum investment, usually £1, with access within a few days of notice being given and a variable rate of interest.
  • Instant Access - Requires a minimum investment, usually £1, with on demand access to your money and a variable rate of interest
  • Mini Cash ISA - Requires a minimum investment, often £1, with access being dependent on the type of account and a variable rate of interest. Tax free return.
  • Monthly Interest Accounts - Requires a minimum investment, often £200 or more, with access being either instant or by notice depending on the account, and a variable rate of interest.
  • Notice Accounts - Requires a small minimum investment, often £200 or more, with access within 7-120 days (depending on the account) of notice being given and a variable rate of interest.
  • Stockmarket Linked Bonds - Requires a minimum investment, often £1000 or more, usually with no access for a set period and interest dependent on the growth of the stockmarket index.
  • Term Accounts / Bonds - Requires a minimum investment, often £1000 or more, usually with no access for a set period and a fixed rate of interest.

See the links above for more detailed information on the variety of bank accounts available and see our bank directory to find out what types of accounts your local bank offers.
 

Always be sure you fully understand what is and is not included, the costs, restrictions and exactly who is offering it before signing up for a bank account or any financial product. For more information see the Financial Services Authority Consumer Information website http://www.fsa.gov.uk/consumerinformation.

None of the information contained in this website constitutes, nor should be construed as Financial Advice.


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