Savings
Accounts
Most banks offer their customers free savings
accounts that sit alongside the existing current
account and allow you to transfer money in and
out of them at your own leisure. All the time
the money sits in the savings account it accrues
interest. Very often the longer you agree to leave
the money in the savings account, the better the
rate of interest you will be offered. In essence,
you are then agreeing to tie your money up within
the savings account without any access to the
funds for a pre-agreed period of time in exchange
for a better return on your money at the end of
that period.
You
can of course choose a basic savers account that
pays a much lower rate of interest, however gives
you immediate access to your funds whenever you
need them and does not penalise you for removing
the money without notice. This is ideal for the
casual saver who wishes to make a bit extra on
their existing funds, but is not really looking
to make significant returns on their savings and
is more concerned they can access it whenever
they should need to. There are also savings accounts
in the middle-ground that give an acceptable return
in exchange for giving 30-60 days notice prior
to removing any funds, with interest penalties
in place if you do remove the cash prior to the
agreed date.
