CLOSE

Select Page

Best UK Saving Accounts

by | Nov 28, 2018 | Managing Money | 0 comments

Table of Contents

Modern banking can be a confusing ordeal. With all of the different options available and all the industry jargon, it can be hard to figure out where to start. But there is no reason why finding a good savings account has to be difficult. In this article, we will discuss many of the major options available in order to help you find the best savings account for you.

Types of Savings Accounts

When it comes to using a savings account, it is important to understand what each type is account is offering you and what limits are in place. This will enable you to take the best step forward for your future. It can be easy to confuse them with each other due to confusing terminology. Here are a few different options to consider.

ISA

Individual Savings Account is an account where the interest you earn is free from taxation. Has a limit for how much can be placed in each year known as “ISA allowance”. The limit for the current tax year is £20,000. Read more…

Instant Access Account

An account that accumulates interest and lets you withdraw money whenever you want, can be opened with an initial deposit as low as £1. Read more…

Limited Access Account

An account that limits the number of times that you can make withdrawals in exchange for better interest rates. Read more…

Regular Savings Account

An account that offers a good interest rate but has strict restrictions such as limiting the number of times you can make withdrawals and requiring a monthly deposit. Read more…

Joint Savings Account

This is an account held by two or more parties. All of the involved parties have free access to withdraw and make deposits. Read more…

Back to table of contents

Best Saving Accounts In The UK

ISA

ISA’s are a way to earn interest on your savings without having to worry about it being taxed. ISA’s are limited in how much money can be deposited into them each year. The limit for the 2018/2019 tax year is £20,000. Withdrawing money from an ISA does not affect the limit for the rest of the year. For example, if you deposited £10,000 into your ISA and withdrew £5000 from it the account will still be treated as if £10,000 had been deposited, in order to reset the total that can be added to the ISA you have to wait for the next tax year. If you wish to transfer your ISA, then you will have to ask your new provider to handle the transfer in order to keep them tax-free. Make sure you speak with your new provider beforehand to see if they accept ISA transfers.

Back to types of savings accounts

Instant Access Account

These accounts are highly flexible and are good for people who need constant access to their savings. They can be opened with an initial deposit as low as £1. They are safe no-risk investments, you can withdraw and deposit your money freely. There are also no charges associated with the creation of the account or withdrawals. They have higher interest rates than current accounts but lower interest rates than regular savings accounts.

Back to types of savings accounts

Limited Access Account

These accounts are far more limited than other types of accounts as they have strict limitations placed on them. The number of times withdraws can be made from these accounts is limited and you are required to make a deposit each month. In exchange for these imposed limits, you receive a significantly higher interest rate for your trouble. Some providers also offer a “Defined Access” account. With these accounts instead of limiting your withdrawals, you are allowed unlimited withdrawals and receive a penalty to your interest rate if you exceed a certain number of withdrawals.

Back to types of savings accounts

Regular Savings Account

This option allows for a higher interest rate than a current account. It has a lot in common with Limited access accounts. These are good if you’re trying to get in habit of saving regularly. You are required to pay in every month. You have to pay a fee in order to make early withdrawals if you’re plan allows for early withdrawals at all. At the end of the agreed term, you will receive all of the money you paid in plus the accumulated interest. Rules and regulations regarding when and if you can make withdrawals differs from company to company.

Back to types of savings accounts

Joint Savings Account

This is an account that is opened by and belongs to more than one person. Usually, these are opening by married couples, life partners or housemates. This allows all involved parties to easily have access to the account. Helps with shared expenses like bills and rent payments. If one of the parties has a low credit score, then it will negatively affect everyone else that the account is under. If the account is overdrawn, then all parties are responsible for repaying what is owed. Joint accounts can be risky, and it is advisable to only open one with someone that you are extremely close to.

Back to types of savings accounts

Student Savings Account

Student savings accounts are special accounts specifically for people in higher education. They can be upgraded into a graduate account after your studies are concluded. The account allows for an interest-free overdraft, in some cases up to £3000. As long as your overdraft falls within the agreed-upon limit you won’t be subjected to interest on the overdraft repayments. It is important to discuss these things with your bank as you will be subjected to additional fees if your overdraft goes over the amount, this could hurt your credit rating in the future. Some banks and building societies offer additional rewards to incentivise you to open an account with them, be careful not to be swayed by this too much.

Back to types of savings accounts

Back to table of contents

Subscribe For the Latest news & Updates

We email you all of the latest topics about making money from home and show you how easy it can be for anyone working from home. Subscribing today will give you a head start against the people who sign up tomorrow!