What’s Available
There are several main types of saving accounts available from each of the top banks and building societies. These include ISAs, regular savers accounts and standard savings accounts. ISAs tend to pay the best interest rates and the interest you earn is free from tax up to a set limit. When your ISA is maxed you can start using a regular saver account which pays more interest than a standard account but it does require a minimum deposit each month. Standard saving accounts pay lower rates of interest but they do allow instant access to your money without any penalties. In addition to saving accounts you can also save your money in the form of Premium Bonds and other savings vehicles.

Main Players
Most saving accounts are held with the top four high street banks – Barclays, NatWest, Lloyds TSB and HSBC however a lot of the building societies are now also offering very competitive rates of interest. Among the best are the Abbey and Alliance & Leicester. If you prefer you can buy Premium Bonds instead and these are available from National Savings & Investments.

Pros of Saving Accounts

• Every saving account pays interest on the money you deposit. The rates tend to vary from provider to provider but it’s all free money at the end of the day.
• Most of the major banks and building societies are regulated by the Financial Services Authority which means your money is very safe while in an account.
• Most normal saving accounts are instant access which means you can get to your money whenever you need it. Some restrictions do apply on some accounts though.
• An internet-only account stops you from drawing money out for frivolous things.

Cons of Saving Accounts

• Some accounts do have restrictions which means you loose your interest if you make too many withdrawals or you fail to give adequate notice.
• If you find a better interest rate elsewhere it can often cost to move your account.

Things to Consider when Choosing a Provider
Every bank and building society has a range of saving accounts on offer so you need to choose the one that has the facilities you need and a good interest rate as well. Don’t feel that you have to be loyal to your present bank/building society – if someone is advertising a better rate of interest then make them your first choice. You’ll also want to talk to someone who knows the products so that you get the best one for your circumstances. If there is nobody available to talk to you about opening an account then they can’t be very serious about your business.

Other considerations include the degree of customer support that’s available and how easy it is to talk to someone, how common the high street branches are and if they offer an online management facility. You might also want to check if the provider charges a fee for transferring your account to another bank should you want to do so at a later date.

BUYability Summary
With the huge range of savings accounts on offer today it can seem quite daunting having to pick one. If you’re simply interested in getting the best rate on your money then you can quickly use the BUYability comparison engine to find the best deal. If other factors are important to you though then it might mean a trip down the high street for a bunch of leaflets from the providers you’re looking at.