Savings accounts are perhaps one of the most familiar financial vehicles in the entire banking sector. As the name denotes, a savings account will allow a customer to place a certain amount of money aside to be used at a later date or when is necessary. Of course, two of the main benefits of such an instrument is that the funds are kept extremely secure and the account itself is protected by the bank. Another feature that needs to be taken into consideration is that such accounts will offer a certain amount of interest earned over time. Although savings accounts are indeed familiar to many, let us nonetheless take a look at some of the variables to keep in mind.

Account	Interest Rate (AER)	Min/Max Balance	Features
National Savings & Investments Income Bonds	1.26% variable rate	£500/£1,000,000	Account managed online, by telephone and by post	More info
Nationwide BS Loyalty Saver 15 Year Loyalty Issue 5	1.50% variable rate	£1/£50,000	Instant Access Must be at least 18 years old.	More info
Tesco Bank Internet Saver	1.40% variable rate	£1/£1,000,000	Instant Access Account can only be opened and managed online	More info
Post Office Online Saver Issue 13	1.40% variable rate	£1/£2,000,000	Instant Access Account can only be opened and managed online	More info
Natwest Internet Saver	0.50% variable rate	£1/Unlimited	Instant Access	More info

Types of Accounts

In general, a savings account can be broken down into two main categories: those which allow for immediate withdrawals and those that will require advanced notice before funds can be removed. The first type is simply known as an instant savings account. A debit card is provided to the customer and he or she can withdraw money whenever the need arises. Although this account is considered to be the most liquid, it should be noted that associated interest rates are low.

The second type of account is known as a notice account. In other words, the institution will require prior notification for any money to be withdrawn. Normally, the client will need to physically visit his or her branch to access these funds. While notice accounts are not nearly as liquid as instant accounts, the interest rates that offered are seen to be much more robust. In turn, such rates allow the client to accrue additional wealth simply by leaving the money in place.

Variables to Consider

Choosing which type of account is the best will normally include a few different considerations. First, it is important to determine how often the funds will need to be accessed. If the money is intended to become a “nest egg”, a notice account is likely the best option. Secondly, interest rates should be calculated. This is particularly important if large sums of money are to be deposited. Finally, the withdrawal policies of the institution need to be clarified.

Getting the Best Deal

There are a few steps to determine which account may be the most advantageous. These will include:

• Determining whether interest rates are fixed or variable.
• Understanding the minimum account balance.
• Considering any early withdrawal penalties.
• Employing the Internet to compare and contrast different providers.

These are four of the best ways to make certain that one is making the correct choices when opening up a savings account.