Savings options to suit different needs

With the economic climate the way that it is savings for our futures has never been as important as it is today according to some experts. An alarming number of consumers fail to save enough for their futures in the UK. And although the number of people saving has risen the level of savings being put aside has dropped over the years according to recent reports. Saving is important to many reasons, and people try and put money aside for a variety of different purposes, from funding for emergencies to saving for a wedding, saving towards an education, or even saving towards retirement.

It is important to think carefully about what you want to save for as well as that sort of savings account will best suit your needs. There are different savings accounts to suit different needs and by choosing the right one you can ensure that you make your savings work hard for you and enjoy an account that is going to fit in with your needs. As with any other product or service it is important that you compare different savings accounts in order to find the right one, as many aspects, such as interest rates and notice periods, can vary from provider to provider. Minimum and maximum deposit amounts can also vary from one place to another.

Regular saver accounts:

Regular saver accounts are accounts that are designed for those that wish to put aside a little money on a monthly basis in order to see it build up over time. These accounts can be very good for those that do not want to have to think about putting money aside, as it can be automatically debited from your current account on a set date each month by your bank. For many people putting aside just a little each month, such as £25, is barely noticeable yet can quickly build up. A number of banks offer accounts like these, and there are minimum and maximum monthly deposits. However, there are financial penalties for withdrawals in some cases.

Notice account:

When it comes to many few of us have real willpower and sometimes we need something to stop us from getting at our money and spending it frivolously. A notice account is a type of account where you have to give a certain amount of notice to get at your cash. These notice accounts can vary in terms of the notice required, but a popular one is a thirty day notice account. Because you have to give notice to get at your cash you are less likely to be frittering your cash away needlessly.

Instant access account:

If you want to put differing amounts of cash away as and when you are able to, and you want to be able to get at your cash whenever you need to without having any financial penalties imposed, then you may find that your best option is an instant access account. These are very simple, straightforward accounts where you can deposit and withdraw money whenever you need to. You can usually deposit as little as £1 and the maximum level of deposits can vary from bank to bank. Interest rates can vary, so make sure that you compare the rates on offer in order to get the best one for you.

Children’s savings account:

Some banks offer children’s savings account for those that want to save towards their child’s future or education as well as for younger savers that want to start learning about putting money aside. However, you do need to be careful, as many pay really low rates of interest on children’s savings accounts, so do make sure that you shop around and compare what’s on offer.

Premium bonds:

As an exciting alternative to a standard savings account you may want to purchase premium bonds. You need to remember that there is no interest paid on these bonds. However, there is a monthly draw each month, and depending on your luck you could find yourself the lucky recipient of anything from a £50 cash prize to a £1,000,000 prize! You need to bear in mind that if you purchase bonds it can take time to cash them in if you need the cash, so this is not the right choice for those that may need instant access to their cash.

ISAs:

An ISA is an effective way of long term saving and enables you to enjoy the benefits of tax free interest providing you meet the minimum and maximum investment and deposit levels each month. With an ISA you can deposit a maximum of £3000 each year in cash, and this will enable you to earn tax free interest on your savings.