Savings
If you want to put some money away to buy something big in a few
months or if you just want to make sure that you're covered
financially for anything unexpected, you should think about opening
a savings account.
Choosing the right way to save
There are loads of different ways of saving your money to choose
from. To find an account to suit you that will also get the most
out of your money, you'll need to think about a number of things,
like:
-
how old you need to be to open the account;
-
how much money you need to open the account;
-
the interest rate that you get on your money;
-
how much money you can afford to put into a savings account;
-
whether you want to make regular payments or just put
something in when you have some spare cash;
-
whether you'll miss out on any bonuses or interest if you
withdraw cash from the account;
-
how much you want to save and for how long before using it;
-
whether you can withdraw cash instantly or will need to
give notice before you can take any money from the account.
Savings accounts on the high street
Most banks and building societies offer a range of savings
accounts, including online accounts. To get the most out of your
money, you'll have to think about how much you want to save and for
how long before using the money.
It may be convenient to have a savings account with the same
bank or building society as your current account. This way you can
manage your everyday living expenses through your current account
and quickly divert any extra cash into your savings, but bear in
mind that you may be able to find a better savings account
elsewhere. Having money in two separate places may be less
convenient but internet and telephone banking make sending your
money to and from different accounts really easy.
When opening an account, you will need to provide some form of
identification. If you are less than 16 years old, you may also
have to ask your parent or carer to open the account on for
you.
When your account is open, always keep any cards, cheque books
and passbooks safe and never share you four-digit personal
identification number (PIN) with anyone.
The Money Advice Service gives information about the
types of savings products available.
National Savings and Investments
National Savings and Investments
(NS&I) are the range of savings accounts offered to savers by
the government. They are one of the safest ways to save your
money.
If you want to open an account with NS&I, think about
how long you want to invest for. Take a look at all the accounts
that you can apply for and decide which is the best for you.
Individual Savings Accounts (ISAs)
If you're more than 16 years old and want to earn interest on
your money without having any tax taken away, a cash ISA could be a
good option.
You can pay money into an ISA as often as you want, as long as
the total amount you pay in over the course of a year isn't above
£3,600.
They're ideal if you're planning to go travelling in the next
year or you're saving for a car and you know how much you're going
to need by a certain date.
ISAs are available from banks and building societies, as well as
NS&I.
Directgov gives more information on
ISAs.