Whether you’re looking to save a bit of extra cash each month or have a lump sum that you’d prefer to put away, then savings accounts are a great place to start.
Boasting some of the most impressive interest rates on the market, savings accounts are a great way to passively grow your cash whilst ensuring that there’s plenty of money tucked away for a rainy day or important purchase.
Let’s take a closer look at how savings accounts work, how they can benefit you and steps you can take to set up a brand new savings account today.
Savings bank accounts are jam packed with great features to help your hard earned money grow whilst keeping your finances safe, secure and accessible. By depositing cash into your savings account each month, you’ll be able to access higher interest rates and achieve your saving goals more quickly than with other account types.
They do share some similarities with current accounts in that you’ll be able to deposit and withdraw cash, as well as transferring funds from one account to another. The vast majority of these savings accounts will also offer the option to create online and telephone banking, giving you the freedom to monitor your funds on the go, no matter where you are in the world.
In spite of these commonalities, there are plenty of unique features that separate current accounts from traditional savings accounts. You won’t usually be able to spend your savings straight from your account with a debit card, although cashpoint and over-the-counter withdrawals are available.
Since these account types aren’t designed with spending in mind, credit facilities and overdrafts are not included with your savings. Whilst this isn’t ideal if you’re looking for a multi-purpose account, it does mean that they’re typically much easier to apply and be accepted for.
Yes! If you’re looking to save money with a spouse, partner, friend or family member then joint savings accounts are available.
You’ll both be able to deposit funds into the account and will be able to create withdrawal permissions that best suit your circumstances.
Yes, although the amount of cover you’ll have will depend on how much you’ve got saved.
All banks, building societies and financial institutions that are regulated by the Financial Conduct Authority are covered by the Financial Services Compensation Scheme (FSCS). This guarantees to protect any funds in current accounts and savings accounts up to £85,000 per named person.
This will depend on the type of savings bank account you’re applying for. To access features such as higher interest rates on certain accounts, you may be asked to keep your balanced at a minimum amount or make a minimum monthly deposit.
Yes! Savings accounts do not come with credit facilities attached meaning that your credit score won’t affect your application.
With more than 50,000 new accounts opened with Monzo each and every week, there are plenty of savings accounts available.
| Pros | Cons |
| All banking facilities available online or through their mobile app | Only one type of savings account available |
| Guaranteed acceptance on savings accounts since no credit requirements attached | Enhanced interest rates available for savings accounts with monthly fees |
| Use your savings account with a variety of online payment services including Google Pay, Apple Pay and Samsung Pay |
Revolut have quickly built up a fantastic reputation for providing easy access current accounts to applicants from all financial backgrounds. With fair pricing at the heart of their business, they offer simple free bad credit accounts as well as paid-for accounts with bells and whistles attached.
| Pros | Cons |
| Access and manage your savings online from a smartphone, tablet or computer | Limited number of savings account options |
| No hidden charges for foreign transfers from savings bank accounts | |
| Additional insurance products available to run alongside your savings |
CashPlus continue to bring new products to market having established themselves as a leading trend setter amongst the UK challenger banks. As the first to offer pre-paid debit cards, they are also spreading their wings into business banking to help customers cover all aspects of their finances.
| Pros | Cons |
| Unrivalled track record in bringing new products to market | Card issuing fees apply |
| No credit checks for savings accounts | Charges apply on free savings accounts once you’ve reached their spending and withdrawal limits |
| Simple application with 100% approval once verified for savings accounts |
Since savings accounts don’t come with credit facilities attached, they’re often much easier to be accepted for than standard current accounts. However, you’ll need to make sure that you fulfil some basic qualifying criteria to be accepted for any UK bank account. You’ll need to meet the minimum entry age requirements for the account that you choose as well as being a UK resident.
You may also be required to deposit a minimum amount into your savings account each month to ensure that you continue to qualify for boosted rates of interest. It’s well worth checking the qualifying criteria of each account before applying so you can make sure that you’ll comfortably be able to meet any deposit limits in place.
Applying for a savings account has never been easier and the vast majority of applications can be completed online in minutes.It all starts by telling us a little bit more about you and the type of account you’re looking for.
There’s no one size fits all when it comes to banking facilities so it’s important that you compare savings accounts before applying to make sure that the terms meet your unique financial circumstances.
Select a savings bank account that you feel offers the best returns on your expected monthly/annual savings, and apply online by supplying a few extra personal details about those named on the account. You’ll receive an instant online decision and, if using an online banking service such as Monzo or Monese, could even have access to your new account on the very same day that you apply.
Find the perfect account for your financial circumstances by getting a personalised savings account comparison with CreditRaters.com today.
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