Savings Account UK - There are many
different Savings Accounts and a number of ways of accessing these, for
example, by post, by telephone or online. The following types of accounts are:
Notice Accounts
- Notice accounts generally pay higher rates of interest and require notice to
be given before withdrawals can be made, typically 30, 60, or 90 days. Savings
can sometimes be accessed immediately subject to a withdrawal penalty. The
interest rate is variable and the minimum investment required is often several
hundred pounds.
Bond or Term
Accounts - Bonds or term accounts will pay more competitive rates, they
require your investment to be tied up for a specific period of time and
withdrawals before the maturity date are often not permitted. If withdrawals
are permitted without notice there will sometimes be penalty charges. The
interest rate is often fixed and the minimum investment is generally �1000 or
more.
Regular Savers
Accounts -These accounts are to encourage regular savings; they require
a commitment to invest each month. Many regular saver accounts will not permit
lump sum investments. Access to savings varies, some accounts may provide
instant access or require notice and others may be fixed term. Generally
regular saver accounts place a restriction on the number of withdrawals
allowed each year. Interest rates are variable and a minimum and maximum
investment per month is sometimes stipulated, these vary from between �10 -
�20 min and �100 - �2000 max.
Children's Accounts - offer you the opportunity to invest your child's money in
a savings account that is easy to understand and manage from your child's
point of view. You can now encourage your child to invest his/her pocket
money, gift money and any other cash received in one of these popular
accounts, and to benefit from earning interest on their savings balance. The
minimum investment is normally �1, and be sure to enquire about the starter
hamper, bonus gift, discount pack or other starter offers available from the
savings branch upon successfully opening a new Children's Savings account.
Individual Savings Accounts are the means by which investors can save and
invest without paying tax on the proceeds. They are not investments in
themselves, but are often described as 'wrappers' in which to hold your
savings.
