Three affordable savings accounts for you
There are a number of affordable saving accounts available in the UK and this article provides some valuable information about them.
A regular savings account is an option for anyone who is hoping to accumulate various savings over the years and recommended by most independent financial advisors. These accounts typically involve higher interests rates and regular branches limit the amount of money you can invest in a monthly account, which would normally range from £10 to £100. Parents with children under the age of 16 can also apply for a family regular savings account at the Norwich & Peterbourough Building Society. This pays 5 percent AER when £250 is paid into an account for duration of 12 months, provided there is only one withdrawal during that period.
A notice account offers better rates of interest than many other savings accounts but you are required to give notice to your bank before withdrawing your money. Stroud & Swindon Building Society pay 2.90 percent AER for a 90 days notice account with a balance of at least £1,000. Close Savings also offer an AER rate of 31.5 percent for a Premium Gold account (180 days notice), however you must invest a deposit of £10,000 first.
An instant access account is a good idea for those who prefer having immediate access to their money; however the interest rates are higher than notice accounts. The Saga Internet Saver and ING’s Direct Savings Account both offer an interest rate of 2.75 percent. However, this is expected to decrease soon so it will be necessary to switch after a year. The Saga Internet Saver account is open to all UK residents over the age of 50.
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