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Savings accounts

The main types of saving accounts are:
Type of account Features Access Benefits
Deposit Usually pays higher interest than current accounts. Instant or easy access. You usually get back at least what you put in. Non-taxpayers can arrange for interest to be paid gross (before tax).
Cash ISA The maximum you can put in is £3,600 per tax year. Usually pays higher interest than normal deposit accounts and this is not taxed. You can put money into it in each tax year up to the limit or you may be able to switch to another ISA account if the new provider accepts transfers.

For questions and answers about ISAs visit the HM Revenue & Customs website – see Related links.		 Instant or easy, but some can have notice periods. You usually get back at least what you put in. Interest is tax-free.
Fixed notice You have to give notice if you want to take your money out, eg 60, 90 days. Penalty if you withdraw your money without giving enough notice. You usually get back at least what you put in.
Fixed rate bond (term accounts) You usually have to leave your money in it for one year or more (the term). Often minimum deposit eg £1,000. Might be difficult or could involve a penalty if you withdraw during the term. You usually get back at least what you put in.
High-interest regular savings Your current account is with the same provider as your savings account. You regularly transfer the same amount each month into this account for a fixed period. Usually, interest is only paid yearly, and you can only withdraw yearly. You usually get back at least what you paid in. You get a high interest rate.

Running a savings account

Don't just put your money away and then forget about your savings account: interest rates change all the time.

It's a good idea to regularly check – say, once a year, or when interest rates change – that you are still getting a good deal. If not, switch to a new account – but watch out for any penalties or loss of interest on closing the old account.

This doesn't apply to term accounts, where you can't usually take your money out before the end of the set term.

Under the Banking Code Standards, your bank or building society must tell you if the interest rate on your account changes. They also have to give you the right to switch accounts for free if the interest rate changes significantly. To find out more about this, visit the Banking Code Standards Board's website.

You can compare different savings accounts available from various banks and building societies using our Compare savings accounts tool.

Top tips

  1. Shop around – use our Compare savings accounts tool to see what's on offer.
  2. Check what notice period the account has.
  3. Watch out for penalty charges when you make withdrawals.