Compare savings accounts to get the best saving rates
Customers tend to set aside money from their current account in a savings account. Savings accounts gain a higher percentage of interest, but the balance of the account can not be used directly as money (by, for example, writing a cheque). Essentially, money from a savings account can not be as easily obtained as money from a current account. Typically, one has to visit a branch or a cash machine to obtain money for transaction, as opposed to making payment by cheque or card. Although withdrawals from some savings accounts can occasionally can be costly, be isn’t usually a limit on the number of transactions that can be carried out.
Some savings accounts, usually higher interest ones, require funds to be kept on deposit for a minimum length of time before they can be accessed by the customer. However, the majority of savings accounts allow unlimited access to the money. As with a current account, savings in an account can be monitored through the regular provision of a statement by the bank which itemises all transactions.
Providers offering the high interest savings accounts can generally be found online. They are able to do this as they have no branches therefore customer service costs are low, meaning they can usually offer higher interest than the high street banks. It is worth mentioning though that this is not always the case, as the high street banks are increasing their levels of interest in order to remain competitive. This is why it is worth shopping around for a savings account which is suitable for you.
Don’t forget though, that as with most European countries, interest gained on UK savings accounts is taxed at source!Next Article: Current Accounts