Savings accounts

Savings Accounts

There are a few savings accounts to choose from on the market, and if you are looking at which is the best account in which to place your money, and where your initial deposit will not be affected then a Savings Account could be the right choice. Be aware of the interest rate after tax though and use this as your comparison. Be clear on when you can access your money ie: is it an Instant Access Account or do you have to provide notice of 30, 60 or 90 days?If you do have a notice account, you can still access your savings in an emergency, but you will loose interest. Check the Terms and Conditions of any account to find out how much.

Savings Accounts Interest Rates

The reason for being aware of the Interest Rate after Tax is to ensure that you protect yourself against inflation. To do this watch that your After Tax Interest Rate is higher than the Rate of Inflation as otherwise you could be left with an account where the money you have saved buys you less.

Regulated Banks

Also, check who your chosen Bank or Building Society is regulated by, as if it is authorised in another European Economic Area, (even if it has a UK branch) then it might be a wise idea to check their policy for complaints and compensation as it may not be the same as a company that is registered in the UK.

Banks and Building Societies registered in the UK are authorised by the FSA (Financial Services Authority) which gives you the peace of mind that if your Bank or Building Society were to collapse then your savings will be protected by the FSA Compensation Scheme which means that the first £50,000 invested in that Bank or Building Society would be refunded. Be aware that many Banks and Building Societies are under the same ownership. Do your homework and ensure that you place your savings wisely.

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Updated on 2nd February, 2009

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