Savings Accounts

There are a multitude of options now available for those that want to save - so many it might put you off. So which type of account is best for you and what benefits do the different savings accounts come with?

Instant Access Accounts
Ideal for withdrawing money if you need it quickly - a number of instant access savings accounts come with cash machine cards so you can access your money at all times of the day. There is usually a limit to how much money you can withdraw in any single transaction but this service can provide useful emergency money when you need it.

If you have choose to set up an instant access account with a bank that has branches then you should be able to withdraw all of the money, just be aware that the best rates are often available from internet savings accounts. Internet-based banks typically allow you to access your savings by moving money to your nominated current account.

Searching for an account that pays the most interest is where most people start their search, but you should also look at how 'instant' the access to your savings will be; you may have to wait a few days for cheques to be sent out or for the money to be transferred.

Use the YourHomeBills.com savings account calculator to find the right instant access savings account for you.

Fixed Rate Savings Accounts
With a fixed rate savings account you deposit a lump sum into the account and leave it, untouched, for a period of 1, 2 or 3 years. The interest rate is then fixed for the term of the deposit and you can choose when you wish to receive the interest. Typically a minimum balance is around £1,000 but once deposited you are not able to withdraw or make additional deposits during the term.

The main benefit of the fixed rate savings account is the high rate of interest offered.

Use the YourHomeBills.com savings account calculator to find the right instant access savings account for you.

Cash ISAs
The main benefit of a Cash ISA is that all the interest earned on it is tax free. With no tax to pay on the interest it means your savings will grow quicker than with a traditional savings account. You may also find that Cash ISAs tend to pay a higher rate of interest than standard savings accounts so it’s worth comparing; some require a notice period for withdrawals, a regular investment to be made or offer a fixed rate on your Cash ISA savings.

It is possible to withdraw cash from your ISA account, but funds withdrawn cannot be re-credited to your ISA account if you have already subscribed to the maximum limit. You can only deposit up to the £3,600 limit in any one tax year, as per ISA Regulations, regardless of the amount you choose to withdraw.

The tax year runs from the 6th April to the 5th April of the following year. For example 6th April 2006 – 5th April 2009.
View the YourHomeBills.com ISA best buys to help find the right cash ISA for you.

Regular savings accounts
If you want to put away a regular amount of money each month then this is probably for you. Typically the bank that holds your current account will offer a high-rate savings account to encourage you to maintain banking with them. You will often receive a high rate of interest but the account will usually have certain conditions attached. Some accounts provide an annual bonus on top of the high rate of interest, but you must make sure that you don't fail to deposit the required amount each month otherwise you will lose this bonus.

The majority of regular savings account will limit the number of withdrawals you can make in an given year so don't look at these accounts if you think you might need access to your money at short notice.

View the YourHomeBills.com savings account calculator to help find the right savings account for you.

National Savings accounts
The UK Government operates the National Savings Department which provides a variety of savings accounts and government bonds. National Savings don't suit everyone but they are an incredibly safe way of saving your cash. They are capital secure which means that when you invest you are guaranteed to get your money back regardless of whatever happens. You can view these accounts at www.nsandi.com .