How to Choose the Best Savings Account

Read on before you open a savings account so you’ll know what’s best for you.

13:31 26 March 2013

Opening a savings account in UK isn’t as easy as it used to be. Gone are the days when you simply go to the bank, fill in some paper works, and walk out with the guarantee your savings will earn an attractive interest.

Today, you are given several options depending on your preferences and circumstances. There’s a perfect savings account for you if you are not going to access your money for a specific period of time or if you want instant access.

There is also a specific savings account if you want to have online access or if you want to save regularly.

Instant access accounts are usually the ones that offer lowest interest deals. If you want to earn more and if you can afford to get your money tied up for at least 6 months, ISA may be best for you.

ISA accounts do not necessarily offer the highest interest rate however, the interest that you earn from these accounts is tax-free.

Postal accounts, on the other hand, usually offer attractive interest rates. However, they are slow to deposit and withdraw your money because cheques are usually sent in the post.

If you want to have access online, online accounts are best for you. These are pretty convenient and quick. Through this, you can transfer money and pay bills in just few clicks on your mouse. They also allow you to withdraw your money anywhere in the world at any time so long as you have internet access.