Different savings accounts UK guide

There are several different savings accounts that UK residents can opt for. Most of the savings accounts available target a specific audience e.g. children, pensioners, self-employed people.

Instant access accounts make your savings easily accessible but still allow you to accumulate a decent amount of interest on the money placed in the account. Access to funds can normally be via transfers or through cash withdrawal. You can manage this account in a number of ways: telephone, post, online or by going to the local branch.

Several varieties of medium or long-term accounts exist for savings, but they are considered riskier investments than using a regular savings account like the instant access one mentioned above. With these accounts, there is a chance that savings can reduce in value, instead of increase. Because of this, these accounts normally have the highest interest rates. As the name suggests, they allow people to save over a long period of time.

Online savings are perhaps one of the most popular savings account types. The interest rates are favourable with these accounts because there is less maintenance involved and the bank can therefore afford to offer better rates. Balance overviews, transfers, direct debits and more are all easily accessible components.

Those designed for children normally do not have a minimum age applied as they are managed by parents/guardians until the age of 18. They can be in the form of any of the above savings accounts and provide an excellent way to make sure that a child has access to money they may need when they reach adulthood.

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