Do you want to kick start the savings habit? Great news if the answer is yes – but which type of savings account should you choose? Our savings decision tree will help you find out.
Answer the first question to start following the path as more questions are unveiled. When you arrive at your final outcome, click on it to compare the best savings deals in that category. Happy exploring!
Find the right savings account for you
Do you have a lump sum to save?
Is this more than £20,000?*
Can you afford to pay in £500 or more each month?
Do you need access to your cash?
Consider an easy access account, including easy access cash ISAs**
These accounts typically pay a variable rate of interest but allow you to access your money at any time (check for withdrawal restrictions)
Easy Access AccountsCompare ISAs
**You can save up to £20,000 in an ISA in the 2018/2019 tax year. Note that from April 6, 2016 basic rate taxpayers can earn £1,000 of interest in any savings account without paying tax on it. Higher rate taxpayers can earn £500.
Consider a fixed rate bond, including fixed rate cash ISAs**
These accounts typically require you to lock your money away for a year or more in return for a higher interest rate
Compare now**You can save up to £20,000 in an ISA in the 2018/2019 tax year. Note that from April 6, 2016 basic rate taxpayers can earn £1,000 of interest in any savings account without paying tax on it. Higher rate taxpayers can earn £500.
Consider a high interest current account
Many pay competitive rates of interest on balances up to a certain amount (you’ll usually have to pay in a set amount each month and have two or more direct debits set up)
Compare nowConsider a regular savings account
These allow you to pay in a set amount each month and typically pay a fixed rate of interest for 12 months
Compare nowYou could also try a high interest current account
You'll usually have to pay in a set amount each month and have two or more direct debits set up
Compare nowYou could also try Peer-to-peer lending***
This carries more risk than a conventional saving method, but the rewards can be higher too. It should be only be considered as part of a balanced investment portfolio.
Compare now*** Peer-to-peer lending is regulated by the Financial Conduct Authority, but your money is NOT protected by the Financial Services Compensation Scheme. There is a risk you may lose some or all of your initial investment.
*The Financial Service Compensation Scheme protects up to £85,000 of savings per person per institution so if you have more than this in savings, it’s best to spread your savings across more than one bank.
1 Offset mortgages that allow unlimited overpayments are an alternative to savings
2 Cash ISA allowance is £20,000 for the 2018/19 tax year
3 As of 30 January 2017, the Financial Services Compensation Scheme protects the first £85,000 of your cash (per banking institution)