Savings Accounts

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Welcome to SavingsAccounts.co.uk

Savings can be best described as storing a sum of money away into a deposit account with a bank or a building society where it is left to gather interest over time.

These deposit accounts, more commonly known as savings accounts, are suitable for short to medium-term savings, offer better interest than current accounts and are available at most banks and building societies and through government National Savings and Investment (NS&I) schemes.

HiSave Fixed Rate Account

A UK bank offering market leading rate of 4.75% AER fixed for five years. One to four year investments also available with rates between 3.10% and 4.15% AER. Minimum opening balance of £1k required.

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	Santander Current Account Switch your current account today and get £100 cashback FREE plus an amazing 5% AER fixed for 12 months.	Apply >>
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	Legal & General Isa Legal & General offer a wide variety of ISA's from Index tracker ISA's to Multi Manager ISA's.	Apply >>
	Virgin Climate Change ISA An environmental fund with potential for outstanding profit growth without destroying the planet	Apply >>
	TD Waterhouse Voted best online broker 2007. Offering self select ISA's with a choice of over 1,800 unit trusts, with 0% administration fee. Terms and conditions apply.	Apply >>

The Importance of Saving

Savings accounts offer a great way for people to save their hard-earned cash for a car or a dream holiday abroad, or for more important matters, such as, a deposit on a new home, or to simply build up an emergency fund for a rainy day.

Planning in advance can considerably reduce the need to rely on borrowing and therefore lessen the burden of any future debt or unexpected twist that may occur.

However, it is essential for potential savers to make sure that they are in a position to save before opening an account. For example, any outstanding debts that an individual may have must be paid off first as the rates on the debt are likely to far outweigh the interest that can be gained through a savings account.

It is also important for savers to budget and work out how much they can afford to put away each month, that is, money that can be put away once all bills and other monthly outgoings are accounted for.

Are Savings the Same as Investments?

A common misconception among people is that saving and investing represent the same thing. However, saving differs from investing in two ways. Savings accounts are really for times when an individual needs to access money quickly. Whereas, investments are generally for longer term, therefore, need to be tied up for five years or more.

Investments also involve some form of risk, that is, although an individual may get a higher return there is also the risk of getting back less than what was originally invested put in.

Savings are not as subject to risk as investments are. The only risks involved are the effects of inflation (see inflation section for more) and the small risk of a default by the bank. You can, therefore, consider your savings to be “guaranteed” up to a certain point.