If you need access to your cash and to avoid tying it up in a fixed-rate savings account, then an easy access account is the best option for you. These accounts will often allow unlimited withdrawals without penalty, but they also frequently include a short-term bonus. Once this expires, the rate paid on your savings will suddenly drop, and you’ll be left hunting around for an alternative account.

If you are happy to tie up your savings for a certain period, a fixed-rate savings account may suit. Rates on these tend to be higher than easy access accounts, although you won’t have access to your cash during the fixed-rate period with incurring a penalty.

Before opting for a general savings account, make use of your ISA allowance for tax-free interest.

When you’re picking any savings account consider the pros and cons before placing your money in it, and ensure it suits your needs.

The first £85,000 of any savings held with Halifax is protected by the Financial Services Compensation Scheme (FSCS). Remember that this protection applies per bank, not per banking institution so if you also have savings with Royal Bank of Scotland, still only the first £85,000 will be covered. Lloyds TSB, however, which comes under the Lloyds Banking Group, carries a separate license, so savings with that bank will be protected separately up to £85,000 per person.