With so many options to choose from - ranging from
standard savings accounts to ISA accounts - opening a savings
account can be a daunting process.
Here are some things to consider:
Some savings accounts have a high-street presence, where you can
deposit and withdraw money over the counter, while you might only
be able to access other accounts just by post, telephone or
internet. Make sure you choose the most convenient type of account
You're likely to find higher interest rates with higher notice
accounts, so make sure you won't need the money in the meantime, as
early withdrawal penalties can be costly, or in some cases, you
won't be able to access your money at all until after a year, for
Notice periods range from 30 to 90 days, or sometimes even
longer, so make sure you're comfortable with the notice period
before you open the account.
Interest rates vary greatly, so it's worth shopping around to
find the best deal for you.
Introductory deals often offer a great rate for a limited
period, so it's worth keeping an eye out and transferring your
money to a new account offering a better rate once an introductory
deal is over.
If you want to save a large amount of money, it's worth checking
what the investment limit is. You'll usually need to deposit a
minimum amount, but there will often be a maximum amount you can
It's worth checking the small print for other important factors,
such as additional bonuses, which can be paid after a certain
period, and how interest is added. For example, some accounts pay
interest annually, while others pay interest monthly.
It really is worth checking these fine details, otherwise you
could miss out on maximum interest payments, or even incur a
penalty if you withdraw money too early.
From short-term savings accounts, to longer-term investments,
finding the right savings and investments completely depends on
your personal situation.