Regular savings accounts - Good for creating the discipline to save on a regular (e.g. monthly) basis and for building a fund for lump-sum investment purposes. However, make sure you understand your minimum commitment (e.g. number of payments).
Notice accounts -Offer penalty free access if you provide the requisite notice for withdrawal or closure. Notice periods vary but you will normally get a higher rate of interest the longer the notice period. Most notice accounts allow instant access in an emergency but impose a penalty such as withdrawal of interest. There are many notice accounts that allow instant access provided a minimum balance is kept in the account.
Term accounts - Your money is locked away in a term account for a period of time ('the term'). The interest rate is usually fixed for the term. Instant access may be allowed but a penalty will invariably be charged.
Money market accounts - Tend to offer higher rates of interest but will usually require a relatively high minimum investment.
Monthly income accounts - These pay interest monthly and are good for investors who wish to supplement their monthly income.
Cash ISA accounts -Many accounts have been repackaged into so-called Individual Savings Accounts (ISAs). Interest on ISA accounts is tax-free. A maximum cash investment of £3,000 p.a. is allowed. For more information about Cash ISAs and other ISA products, visit the 'ISA' page.
Friendly Society products - Suitable for small regular but long-term savings (up to £25 per month or £270 annually). Growth on your savings is tax-free as long as the savings are held with the Friendly Society for a minimum of 10 years. There are Building Society accounts that link to Friendly Societies where amounts are invested with the Friendly Society which puts the money on deposit with a Building Society. This increases the return on the deposit account as a result of the Friendly Society's tax advantaged status while retaining the safety aspect of a Building Society investment.
National Savings Certificates are low risk, fixed term investments with tax-free returns offered by the National Savings Bank, which is backed by the Government.
Savings Bonds or Guaranteed Bonds are fixed term investments usually between 2 and 5 years. They usually carry fixed rates of interest.
Tip: When comparing interest rates use the APR ("Annual Percentage Rate") also known as the AER ("Annual Equivalent Rate"). This rate allows you to compare accounts that pay interest say on a monthly basis with those that pay say quarterly or annually.
General
Instant Access Accounts
Savings Accounts
On-line Banking
