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? (This could be your salary)
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 Accounts
**You can save up to £20,000 in an ISA in the 2017/2018 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 rateCompare now
**You can save up to £15,240 in an ISA in the 2015/2016 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 now
Consider 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 monthsCompare now
You 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 upCompare now
You could also try Peer-to-peer lending***
Peer-to-peer lending websites work by enabling savers to lend directly to borrowers. By cutting out the need for banks or building societies, savers tend to get better returns than they would with a standard savings account, while borrowers benefit from lower loan rates.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.
*As of 30 January 2017, the Financial Service Compensation Scheme protects up to £85,000 of savings per person per institution so if you have more than this, it’s better to spread your savings across more than one institution.
1 Offset mortgages that allow unlimited overpayments are an alternative to savings
2 Cash ISA allowance is £20,000 for the 2017/18 tax year
3 As of 30 January 2017, the Financial Services Compensation Scheme protects the first £85,000 of your cash (per banking institution)