Video - A guide to savings accounts

by Leeds Building Society

A guide to savings accounts

There are lots of different reasons to save.

A house deposit, a car, a holiday or just something for a rainy day.

Choosing the right savings account depends on how much you can save, how long you want to save for and whether you’ll need access to your savings.

If you want to have your money on hand when you need it, an access account could suit you. However, saving rates are usually lower than with fixed rate accounts.

With easy or instant access accounts you’ll usually be able to withdraw your savings whenever you want.

A notice account requires you to tell your bank or building society in advance that you want to withdraw your money, usually 15, 30, 60 or 95 days before.

Regular savings accounts are great for saving a certain amount each month. This means you can put a smaller amount of money away each month rather than one lump sum. These accounts can have limits on how much you can save, for example between £20 and £250 each month, as well as how often and when you can take money out.

If you have a lump sum to invest that you can afford not to touch for a longer term, usually a year or more, a fixed rate account could offer higher interest rates to help make your big plans become a reality.

If you are a tax payer, make the most of your money by saving tax-free§ with an Individual Savings Accounts (also known as an ISA).

Don’t forget to check the terms and conditions of any savings account you choose to make sure it suits your needs.

§Tax free mean that interest payable is exempt from income tax.

Cash ISAs are available to individuals aged 16 and over who are resident in the UK for tax purposes.

Fixed rate products are linked to market rates at the time of issue. Future fixed rate products may be offered at higher or lower rates depending upon the changes in market conditions.

This guide is intended as a summary only and does not constitute financial or legal advice given by Leeds Building Society. No reliance should be placed on this guide and you must make your own decisions, we recommend that you seek legal and/or financial advice if you have any questions or queries.