There are a variety of savings accounts available to suit individual needs.
Types of savings accounts include:
- E-Savings Accounts - small opening balance required, no notice of withdrawal needed and no need to ensure that regular payments are made.
- ISAs - Tax-free savings accounts which come in many forms. The most common is the mini-ISA which has a limit of GBP 3 000 which can be invested in any one year.
- Interest is usually tiered i.e. paid at a lower rate for smaller investments and at a higher rate for larger sums.
- Standard Savings Account - No minimum investment, instant access and often, a cash card. (Variations on this account include offering a more favourable interest rate for fewer transactions.)
- Standard-Plus Savings Account - A minimum amount has to be invested and instant access is available, all paying a higher rate of interest.
- Savings Account only available to the holders of certain accounts within the bank - Higher minimum opening deposit, and instant access. This has a higher still rate of interest paid into it.
- Savings Account where 90 days notice has to be given before withdrawals are made - Typical opening balance of GBP 5 000 must be invested, with a very favourable rate of interest.
- Guaranteed Equity or Fixed Rate Bond - Typically tie up money for two or three years with a minimum investment of GBP 5 000. Gives a comparatively high rate of return. Bonds are linked to stock-market performance.
- Five Year Children’s Bonds - Tie up the savings for five years and, typically, require at least GBP 1 000 to be invested.
- Smaller Bond - Typically GBP 500 and money is only tied up for a year.
- Savings Account for Young People - Minimum investment is GBP 1 and instant access is available.
- Child Trust Fund - The government give GBP 250 into a child’s account for those born after 1st September 2002. Parents and friends can add to the account (often with a ceiling of GBP 1 200 per year) and the child can not withdraw any monies before they are 18.
- Term Deposit Accounts - Minimum amount has to be deposited for a set period, typically, six to 36 months.
- Guaranteed Tracker Accounts - Account follows the Bank of England base rate. A minimum deposit is required.
- Savings Account - where there is a minimum paid in each month.
Savings accounts and investments are closely related. What’s the difference?
- Savings accounts produce a steady and certain return
- Investments can go up as well as down.
Savings account links
- www.halifax.co.uk
- www.bankofscotland.co.uk
- www.alliance-leicester.co.uk
- www.nationwide.co.uk
- www.abbey.com
- www.bradford-bingley.co.uk
- www.bristol-west.co.uk
- www.northernrock.co.uk
- www.cheltenhamandgloucester.co.uk
- www.woolwich.co.uk
- www.if.com
- www.ingdirect.co.uk
- www.smile.co.uk
- www.halifax.co.uk
- www.citibank.co.uk
- www.lloydstsb.com
- www.nationwide.co.uk
- www.firstdirect.com
- www.virgin.com/uk/finance
- www.cahoot.com
- www.barclays.co.uk
- www.natwest.co.uk
- www.hsbc.co.uk
- www.clydesdalebank.co.uk
- www.oneaccount.com
- www.standardlifebank.com
- www.co-operativebank.co.uk
- www.yorkshirebank.co.uk
