Guide to UK Savings Accounts

MatthewA By MatthewA, 19th Oct 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/3ywe-gbn/
Posted in Wikinut>Money>Investing

Savings accounts in the United Kingdom can have a variety of options and features. As such, they can be of some variety. However, all savings accounts will provide a guaranteed return, and interest will accumulate on saving investments.

Guide to UK Savings Accounts

To begin with, there are a number of providers for United Kingdom savings accounts. Banks such as Natwest, Barclays, Halifax, Nationwide, Santander, and RBS to name a few all have a few saving accounts that can be invested in. To open a savings account may require that a current account already be opened with that particular branch, although not necessarily always. In addition to this, some United Kingdom banks may only open accounts with United Kingdom nationals.

Aside from this, all such accounts will have a quoted rate of interest. The quoted rate of interest is the percentage return on the deposit. Such interest rates can be either fixed or variable. Variable interest rates are those that vary, and can go up or down. Fixed interest rates are those that remain the same, usually for a more limited period. These interest rates can be higher than variable rates.

Saving accounts can be easy access, or be more limited. Easy access accounts may have lower interest rates. However, more limited access saving accounts may provide a better interest rate and return on savings. More limited access saving accounts may require no withdrawals for a particular period. Any withdrawals during the period could result in a lower rate of interest than quoted depending on the account terms and conditions.

Overall, there are really two types of United Kingdom savings accounts. The first are standard saving accounts. These saving accounts can be subject to tax if the investment and deposits are great enough. Usually, these saving accounts have a net interest rate, which is an interest rate after tax.

The second type of saving account in the United Kingdom is that of the Isa (Individual Savings Accounts). Isa saving accounts, otherwise Cash Isa, is a relatively new type of saving account. This type of saving account is a tax-free saving account. As a tax-free saving account, the interest will therefore not be taxed and their overall returns can be greater.

Overall, United Kingdom saving accounts can be a good investment option. Admittedly, during period of lower interest rates this is not so much the case. However, they still provide guaranteed returns for deposits and investments and with larger deposits can return many thousands.

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Isa, Saving Accounts

Meet the author

author avatar MatthewA
Matthew is the author of the book Battles of the Pacific War 1941 - 1945. You can find further details at http://battlesofthepacificwar.blogspot.co.uk/.

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