A simple guide to personal savings accounts

Savings are a fundamental part of many British people’s lives. There are constantly new things to purchase that one month’s salary cannot cover. So, whether it’s a new home, car, games console or television, without savings, they are out of reach for many people.

With living costs being at an all-timer high for much of the world, the need for savings is also higher. Experts believe that according to the most recent data, around 40% of Brits wouldn’t last a month if they relied on their savings.

This highlights just how important it is to save as life is unpredictable and costs may incur when we least expect it. This could be getting hit with a hefty vet bill, a speeding ticket or even the loss of a job. Whatever happens, you mustsave enough to cover your own back.

Here are some of the simplest ways to improve your financial situation using personal saving accounts.

Easy Access accounts

Everyone knows the best way to boost your savings is to put them in an account and allow interest to increase its value over time. When you need ease of access to that account for withdrawals and deposits, however, you’ll need an account that can do just that.

Easy Access accounts will allow you to make withdrawals. Some only allow for a handful of withdrawals per year, but many will allow for unlimited amounts. Assess your spending and see which account will work best for you.

Regular savers

Ideal for those that are looking to make great progress on their savings, a regular savings account allows you to open an account for as little as a £100 starting fee which makes them accessible to many people. On top of that, you can only make one withdrawal each year helping you to maintain your savings without being tempted to withdraw.

Regular savers often offer a strong interest rate meaning you will end up making a healthy profit as you save across the year.

Cash ISAs

Depending on how long term your savings goals are, cash ISAs may be the perfect option. You can get ISAs that have a fixed rate of up to and over 5 years in some cases. The longer your fixed-rate ISA, the greater the interest rate you’ll have. This means that you can make a significant amount with no risk as you may get from investing elsewhere.

Withdrawals can be made if necessary but you will lose a set amount of days’ interest each time you withdraw. Some lower interest ISAs offer unlimited withdrawals, but the interest rate is far lower.

Children’s Savings

Give your child the best start to life financially with these accounts. These accounts can be opened using small amounts and can be paid into monthly for your child to access when you’re ready to give them it. They offer a healthy interest rate and can be set up easily in a branch.