Savings Accounts

What is a Savings Account
Savings accounts are usually held with banks and other financial institutions. They normally pay a higher rate of interest than cheque or current accounts. They are intended for longer term savings rather than the money you use for day to day expenses.

Though they usually pay higher rates of interest they also may have certain restrictions on how easily or quickly you can withdraw your money. Typically, the higher the interest rate the longer notice they will require before you can get hold of your money for other purposes.

Some people find the best thing to do is have two, or more, savings accounts. One would be for money that may be needed at fairly short notice. Though it may pay less interest the money is quickly available. The other account would be for more long-term money where notice of anything up to several months may be required before withdrawal.

Savings accounts are available in your high street, via post offices and on the internet. You should do some research into interest rates, terms and conditions and find out what you are committing yourself to before investing. You should consider what you require from a savings account. It may not be important that you can go to a local branch and online accounts frequently offer the best deals.

Next...>