Savings

Choosing the right savings account can be confusing, given the many options available. These include easy access/no notice accounts, bonds or term accounts, notice accounts, tax-free accounts, and regular savings accounts.

Important factors to consider when deciding include: –

• Is the interest guaranteed or specific on a condition being met

• How many withdrawals do you estimate you will need

• Is a tax-free savings account more important than the interest rate due to your current tax situation

• What is the headline interest rate of the account

• Is the rate only for a set period and then reverts to a lower rate, commonly known as introductory or bonus rates – always check the fine print
• Are there conditions regarding minimum and maximum amounts you can invest

• If you had to withdraw all your savings due to an emergency, would you have to pay a penalty or lose some or all of the interest earned
• Does the FSCS cover the account, and do you understand the details of the cover, i.e. per person, per institution
• Are there any special schemes available for which you qualify, i.e. UK government schemes
• Are premium bonds right for you, and investing in these would be in your best interest

Generally, if you don’t know the answers to the above factors, you should ensure you get a good return on your savings without having to lock them away or be subject to strict conditions and watch out for banks outside of the FSCS protection.

All of the above can be discussed during an appointment with your adviser. For more information about any of the above, please email us using the Contact Us page.