Savings accounts

Saving for a housing deposit is made so much easier when you opt for a high yield savings account that suits you. You could even choose one that has restrictions on withdrawals to help you save, such as a notice savings account. If you’re buying a house with your partner, you might want to look at joint high interest savings accounts so you can both save towards your shared goal. First-time buyers may also wish to consider a Lifetime ISA, as it’s a long-term savings account aimed towards helping people save for a first home.

Whether you’re planning the trip of a lifetime or want to take the little ones somewhere special, having a savings account will help you stack up your spare cash. With lots of different types available, you’ll be able to find one that works for you. For example, fixed rate bonds can be a good option if you’re saving for an expensive once-in-a-lifetime holiday, while notice savings accounts may be suitable if you’re not sure when you’ll be going away. You can also opt for a high yield savings account with a shorter commitment. A three-month fixed-term bond could be a great way to grow your savings quickly, making it ideal for funding a family holiday.

Making the decision to have children is a huge step, and definitely one that you want to be financially ready for. Whether it’s for your children or grandchildren, having a savings plan is a great way to set them up for success in the future. Plus, most children's savings accounts and Junior ISAs are high yield savings accounts, thus growing savings quicker than regular accounts.

It’s called the 'big day' for a reason, and with the average UK wedding costing nearly £20,700 in 2023, you’ll definitely want to take some of the financial stress out of wedding planning by having a savings pot ready. Depending on when you’re getting hitched, a long-term savings account such as a fixed rate bond may be a good option. Even if the big day is only a few months away, you might still benefit from putting your money into a notice savings account.

With some advisers recommending that you save ten times the amount of your annual salary ready for retirement, the earlier you pay into your savings pot, the better. As well as paying into a pension, you could consider growing a lump sum for retirement with fixed rate bonds. If you don’t intend to retire in the immediate future, putting your money into a high yield savings account such as a fixed-rate savings account can be a good way to accrue interest over the long term.

ISAs, or individual savings accounts, are great for those looking to save in a tax efficient way, as they let you save £20,000 without paying any tax on the interest you earn. It’s worth remembering, however, that many people won’t pay tax on their savings thanks to the personal savings allowance. That being said, ISAs can be a good option for those with a large amount of savings, or additional rate taxpayers.

Deciding what your savings goals are can help you decide which savings account would suit you best. For example, if you’re saving for something specific, such as a new car or a trip abroad, a flexible savings pot (for example an easy access account) may be ideal as you’ll be able to withdraw your cash as and when you need to without a penalty, as well as being able to top up your balance whenever you want. For long term savings, such as a retirement fund, a high-yield savings account such as fixed rate bonds, may be a better option.

Savings accounts have different rules as to when – and how often – you can withdraw your money. Easy access accounts usually allow you to withdraw your money whenever you like without incurring a penalty, so they’re an ideal savings pot to put in your emergency savings. However, they do come with lower interest rates than fixed-rate savings accounts, and the interest rate can go up and down at any point. Fixed rate savings accounts, on the other hand, require you to lock your money away for a fixed period, with no access to your money within this time – but in return you’re likely to receive a higher interest rate. A high yield savings account might be an excellent option if you have the time to commit for a fixed period. If you want the freedom to withdraw your cash but don’t need immediate access, a notice account may be a good option.

How much you’re looking to save will affect what type of savings account suits you best. Regular savings accounts in the UK require you to deposit a set amount of money every month. If you don’t make the minimum payment into your account, your account may be closed, or you may be given a lower interest rate. ISAs have a cap on the amount you can save each year (for the year 2025/26, the ISA cap is £20,000). FSCS-protected savings accounts will cover your money up to £85,000 per person, per banking group (or £170,000 for joint savings accounts), so if you have more than this amount to deposit, it’s advisable to spread this money over more than one savings account to ensure that you are covered by the limit.

Savings accounts come with different features which may suit what you’re looking for. If you’re looking to get into the habit of saving, a regular savings account requires you to deposit a set amount on a monthly basis. They also come with stricter rules than other savings accounts, like limited withdrawals across a period of time. If you want to be sure of how much interest you’ll earn, a fixed rate savings account could be a good option over a variable savings account, as it's often a high interest savings account. Other features may also be important to you, such as having a Sharia-compliant savings account, or banking with a ‘Green’ bank or building society.