A savings account is a type of account held at a financial institution (typically a bank) that usually pays interest on deposits. The account holder deposits money into the account, and then interest is paid on the balance of the account.
The main purpose of a savings account is to allow customers to save money, whilst earning interest on the account balance and the deposited funds over time.
Banks tend to offer a range of savings accounts with various interest rates. When you deposit money into a savings account, the bank will usually pay a small amount of interest on that money, which means that your balance will grow over time.
You can usually withdraw money from a savings account at any time unless it’s an account which requires you to send a notice to withdraw funds. In general, savings accounts are a safe and easy way to help save money and earn interest on that money too. Learn some money saving tips.
There are a variety of savings accounts available in the UK. Some of the more common accounts are:
It’s always important to do your own research into the various savings accounts available and find one that best fits your needs.
It’s typically very simple to open up a savings account. However, you should make sure you do your research to ensure you open a savings account that’s right for you. Some tips for finding the right savings account include:
It’s a good idea to shop around and compare the different savings accounts available, to find the one that best fits your needs.
Join over 500,000+ people building wealth with Chip.