Choosing savings
There are thousands of savings products around. To make the task of choosing one less daunting it helps if you can work out what you want from an account.
If you need to get hold of your money quickly you may want to stick to an instant or easy access account. Or maybe you're happy to tie up your money for a while in which case a fixed rate product may be right for you.
Do you want to start saving straightaway with a lump sum, or do you want to make regular savings?
Have you taken advantage of your annual tax-free allowances by paying into an ISA?
How you decide to manage and access your account can have quite an impact on the interest rate you receive. Many online savings products offer better interest rates and you can check your balance, conduct transactions and transfer money over the internet.
Other ways to manage a savings account include by branch, post or phone. You may well find that certain products are restricted to a number of these methods - so make sure you know which ones your product allows.
Once you have decided what you're looking for, it's important to shop around to find the best rate of interest available on the best terms. You don't have to stick with your usual bank account or building society.
When you open a new account, or make a withdrawal from a branch, you will have to provide proof of your identity. This is to prevent criminals using savings accounts for money laundering purposes and to stop other types of fraud.
Top tips
- Although some people are still a little dubious over the safety risks, internet banking is becoming more and more popular. Online banking is not only quick, easy and accessible for customers, the banks also like it because it means less work for them!
- Look out for limits to the amount of withdrawals you can make or any interest penalties that might be applied if you touch your money within a certain time.
- If you're over 50 you might get a special deal.
- Remember to find out if there is a minimum amount that you need to save each month to keep the account open.