All Savings Accounts
Yorkshire Bank Cash ISA Fixed Rate Bond (Issue 42)
Fixed Rate of 1.5% tax-free p.a./AER. Minimum deposit £2,000. Withdrawal before maturity date incurs a charge. Interest is calculated daily and credited to the account annually and at maturity on Issue 42.
Leeds Building Society 2 Year Fixed Rate ISA Issue 93
Interest paid: annually on 1 December (commencing 1 December 2018) and on maturity (1 December 2019). Minimum operating balance £100. Maximum balance: The maximum you can deposit in the 2017/18 tax year is £20,000 (less any amount invested in a Stocks and Shares ISA and/or an Innovative Finance ISA and/or Lifetime ISA in the same tax year). Withdrawals: withdrawals/transfers of your capital investment prior to maturity (1 December 2019) are permitted, although they will be subject to 150 days' loss of interest or an equivalent amount on the amount withdrawn/transferred. Rates: fixed for a two year period. Further deposits: not permitted in future tax years.
Ulster Bank eSavings
You'll earn 1.25% AER/Gross p.a. (variable) Instant access once you've set up internet and telephone banking and have a card and card reader. Manage your account online, by telephone banking or via Ulster Bank's mobile app. It only takes a few minutes to apply. You'll need to be 18 or over and a UK resident. Daily withdrawal limits apply (see section 5 below).
AA Easy Saver Issue 4
All deposits must come from your linked bank account. Minimum balance of £100 required to remain open. Any withdrawals taking this below £100, the account must be closed. All withdrawals will be sent to your linked bank account. Free withdrawals with no penalties or notice periods online (Up to £50,000 per day over the phone).
What type of savings account do I need?
There are many things to take into consideration when it comes to choosing a savings account. As the market is flooded with different types of accounts, you need to think about how much access you need to your money, whether or not you’re prepared to lock it away, and if you want to avoid paying tax on the interest.
Instant access savings accounts are a good starting point for new savers. They allow you to withdraw your money quickly and easily so it can be dipped into in case of emergency.
Another type of account that lets you retain access to your money is a Cash ISA. The added benefit to this is that you can earn tax-free interest up to the limit set by the government each year.
If you are comfortable to give advance notice before withdrawing your money, a notice savings account may be a good option. They usually have a higher rate of interest but you will need to give 30, 60 or 90 days’ notice before being able to touch your savings.
For those who are happy to lock your cash away for a period of time, fixed-rate bonds often come with higher interest rates than other types of savings accounts. Generally, the longer you’re prepared to leave your money untouched, the higher your return will be.
FAQs about savings accounts
How much money will I need to deposit to open a savings account?
The amount required to open a savings account depends on the individual provider and the type of account you choose. Most instance access accounts can be opened with as little as £1.
Will I be charged for taking money out of a savings account?
Most instant access accounts and cash ISAs won’t charge you for accessing your money. However, notice accounts or fixed rate bonds will likely apply a financial penalty. Make sure you check the terms and conditions carefully.
Which type of savings account will give me the highest instant rate?
Generally, the longer you’re prepared to leave your money untouched, the higher your return will be.
Can I have more than one savings account?
Yes, you can have as many savings accounts as you like. However, you’re only allowed to save into one ISA each tax year.
Can I have a savings account if I don’t want to tie my money up?
Yes, there is a huge variety of savings accounts to choose from, many of which will give you instant access to your money or will require a short notice period.
When will interest be paid?
Depending on the type of account you choose to open, interest on your savings will be paid either monthly or annually.
Do I need to hold a current account with the same provider before I can open a savings account?
Most providers won’t require you to hold a current account or any other type of account before opening a savings account with them. However, some providers will give preferential rates to existing customers.
Can I open a savings account if I have bad credit?
Yes, even if you have a low credit score you can open a savings account. Your finances won’t be checked.
What will happen to my money if the bank goes bust?
In the UK, banks, building societies and credit unions are protection under the Financial Services Compensations Scheme (FSCS). This offers compensation if an institution goes bust.