TYPES OF SAVINGS ACCOUNTS |
WHAT IS A REGULAR SAVINGS ACCOUNT |
A regular savings account is an account that you put money into
regularly, normally each month. The reason for this is the bank or building society will give you a higher interest
rate because you have committed to saving the money regularly for a set period of time, usually over a year but sometimes
longer.Access to savings varies, some accounts may provide instant access or require notice and others may be fixed term.
Generally regular saver accounts place a restriction on the number of withdrawals allowed each year. It is important to read
the small print as often the headline interest rate is based on a bonus which is only paid if you make all the payments.
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WHAT IS AN EASY ACCESS/INSTANT ACCESS SAVINGS ACCOUNT |
Easy access/instant savings accounts allow
you access to your savings instantly. Due to this flexibility a lower interest rate will be often be offered although
there are some higher rate ones available from banks and building societies. These accounts are great as an emergency fund
or if you think you might need the funds in a hurry. Many of these savings accounts also offer the convenience that they
can be opened and operated online.
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WHAT IS A NOTICE SAVINGS ACCOUNT |
A notice account is an account where you are required
to give a time period to the bank or building society before you can take the money out. For example: thirty days, sixty
days, ninety days and sometimes longer. With a notice account, you will usually get a higher rate of interest for
committing and saving your money for a longer time.Savings can sometimes be accessed immediately subject to a withdrawal penalty
of loss of interest.
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WHAT IS A FIXED RATE BOND |
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Fixed Rate Bonds require your investment to be tied up for a
specific period of time and withdrawals before the maturity date are generally not allowed. If withdrawals are allowed
there will normally be penalty charges. The interest rate is fixed and the minimum investment can vary from £100
to as much as £5000 depending on the bond. A lot of banks and building societies offer them and the term can be as short
as 6 months or as long as 3 years. The typical fixed rate bond is 12 months. Fixed rate bonds often offer the best and highest savings
rates available from a savings account.
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National Savings and Investments |
National savings accounts are run and backed by the HM
Treasury (the UK government) therefore, they are 100 percent secure. National savings offer a wide range of products
like premium bonds, ISA's, Index linked savings certificates, income bonds, easy access accounts and guaranteed bonds.
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INSTANT ACCESS SAVINGS ACCOUNTS (last update May
2012)
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SAVINGS ACCOUNT DETAILS
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FURTHER INFORMATION
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3.00% Esaver issue 5 (Rate includes a bonus for the first 12 months) |
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Instant Access with no penalties.
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Coventry Building Society
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3.15%
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£1+
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Online savings accounts offering 4 penalty free withdrawals a year. |
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30 and 60 day NOTICE SAVINGS ACCOUNTS
(last updated May 2012) |
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Principality Building Society
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60 Days Notice Minimum Investment £1000 |
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Melton Mowbray Building Society
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30 Days Notice Minimum Investment £1000 |
