Bank Accounts For Saving Money
Choosing a safe place to keep your money is easier than you might think. There are hundreds of accounts, but only a few types – some accounts for easy access to emergency funds, some for saving regularly and some for growing your money.
Types of savings accounts
Instant and easy access accounts | The place for your emergency savings. They might pay more interest than a normal current account, and the money is on hand when you need it. |
Regular savings accounts | For saving a monthly chunk of your income. There are rules about how much you can put in and take out, but you get a slightly higher interest rate. |
Fixed-term deposit accounts | Sometimes called ‘bonds’, these are for putting money aside for a set length of time. A fixed rate of interest is set in advance, so you know exactly how much you’ll end up with. |
Index-linked accounts | Like fixed-term deposits, but the interest rate changes in line with inflation – you can’t be quite sure what you’ll get at the end of the term. |
Cash ISAs (tax-free) | Tax-free savings. You get an annual allowance – so make the most of it! A Cash ISA is usually a simple savings or deposit account. You can get a Cash ISA from the age of 16, or a Junior ISA for under 18s. |
Current accounts | While most current accounts won’t pay interest on money you keep in the account, they’ll allow you to receive regular payments like wages, benefits or the state pension and set up payments out for things like bills. |
Comparison websites are a good starting point for anyone trying to find a bank account tailored to their needs. Comparison websites won’t all give you the same results, so it’s a good idea to use more than one site before deciding.
It’s also important to do some research into the type of product and features you need before making a purchase or changing provider!
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