Choosing between savings options is easier than it looks. There are hundreds of accounts, but only a few types of account – some for easy access to emergency funds, some for saving regularly and some for growing your money. Take a look at the table to see which suits you best..
|Types of cash savings account|
|Instant and easy access accounts||The place for your emergency savings. They might pay more interest than a normal current account, and the money is on hand when you need it.|
|Regular savings accounts||For saving a monthly chunk of your income. There are rules about how much you can put in and take out, but you get a slightly higher interest rate.|
|Fixed-term deposit accounts||For setting money aside for a set length of time. A fixed rate of interest is set in advance, so you know exactly how much you’ll end up with.|
|Index-linked accounts||Like fixed-term deposits, but the interest rate changes in line with inflation – you can’t be quite sure what you’ll get at the end of the term.|
|Cash ISAs (tax-free)||Tax-free savings. You get an annual allowance – so make the most of it! A Cash ISA is usually a simple savings or deposit account. You can get a Cash ISA from the age of 16, or a Junior ISA for under 18s.|
Comparison websites are a good starting point for anyone trying to find a savings account tailored to their needs.
We recommend the following websites for comparing savings accounts:
Not quite sure which to go for? Click on the account types in the table above to read more
This article is provided by the Money Advice Service.