Bank Accounts

There are a number of different kinds of account you can open to save your money, this will depend on what you want to be able to do with your money;

Cash ISA

ISAs are tax-efficient accounts allowing you to earn interest without tax being deducted. Currently, you can save up to £7,000 a year in an ISA, but it is always a good idea to check this with your bank or building society. You can pick from easy access variable ISAs, or ones with fixed terms and rates, but as a starting point for your savings they're a good bet whatever your situation.

Regular savings accounts

If you can put a set amount away each month this is a good account for you. However, check the withdrawal allowances as sometimes there are restrictions.

Notice accounts

If you pay money into a notice account you have to give a certain number of days notice before you can take money out. If you have to withdraw money immediately you can usually do so, but you will lose some interest. Notice accounts usually pay slightly better rates of interest to make up for having to give notice.

Fixed-rate bonds

These are long-term savings accounts. As you don't have access to your cash for the length of the bond (anything from six months to five years) the provider gives you a higher rate of interest.

Ideal savings scenario

The ideal situation is to have a range of saving accounts with an emergency fund in an easy access account, some tax-free savings in an ISA, and some long-term savings.This normally take some time to establish.

Check the terms and conditions

Accounts terms and conditions can differ massively between providers, always take time to read the small print and ask for advice to help you understand - before you sign up to the account.