|
Copyright © 2005
Debt Advice Online
All Rights Reserved |
|
Debt & Financial Advice
UK Savings Advice |
|
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: |
| Easy
Access Accounts |
| Easy access
accounts provide access to your savings instantly
or within a few days without a penalty. Due
to this flexibility a lower variable interest
rate will be offered. These accounts are particularly
suitable as an emergency fund, providing easy
access, a way to start saving and some accounts
offer a cash card facility. A bonus scheme
may be offered if the numbers of withdrawals
made are within a specified limit, for example
a maximum of 2 withdrawals per annum. The
minimum investment is normally £1. |
| 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. |
| back to top |
|
|
