Our savings grow every time interest is added to them.
Generally, the more flexibility you have, the lower the interest rate. For example an easy access account will have a lower interest rate than a fixed notice account, where you have to give notice to take your money out.
Although higher rates are often reserved for new investors, the longer you let a bank or building society hold onto your money, the more interest you are likely to get. Some savings accounts have tiered interest rates which get higher the more savings you have.
Some special products with excellent rates may only be available if you meet certain criteria - such as holding a current account with that bank.
Each savings account will have its own interest rate, the AER (or the annual equivalent rate), so you can make quick comparisons between one savings account and another. The AER shows you what your savings will earn in a year if left for twelve months, and assuming interest is paid once a year.
Providers of savings accounts may offer an introductory bonus. This is where a higher, introductory rate is offered for a limited period, typically six to 12 months, after which the account reverts to a lower rate.
Interest on savings accounts is generally paid either monthly, or annually. Those that pay annual interest often offer a better deal if you are saving for the long term - in other words if you will not need to make any withdrawals over the course of a year.
Any interest you receive will be taxed as income in most standard savings accounts.