One of the major problems for people considering putting their money into a savings account is the fact that there are so many choices. While this is obviously good from the point of view that the consumer has plenty of options, it can be somewhat bewildering and lead to the person either making the wrong choice or abandoning altogether the attempt to invest their money wisely.
What most people look at when considering putting money into a savings account is the headline interest rate – ie how much money your cash will generate in interest while it is sitting in the account. But there are a number of other factors which should always be taken into consideration.
Perhaps the most important thing to remember when considering which type of account to opt for is how long you can allow your money to be tied up for. Instant access accounts may not always offer the best interest rate around, but they will allow you to access your money immediately should you suddenly find yourself caught short. Some online accounts will allow you to establish a link between your current and savings account so that access really will be almost instant – there will be no delay in waiting for a cheque to clear. This can obviously be an invaluable benefit if your income and outgoings can be unpredictable.
On the other hand, if you are confident that you will not need your savings money in an emergency – and moreover do not want the temptation of being able to access it whenever you feel like – then a notice account may be more applicable. Notice accounts will often provide a significantly better rate of interest, but you will have to wait a relatively long time (90 days is a typical period) before getting your hands on your cash.
There also exist regular savings accounts, which offer good interest rates and an annual bonus for savers. However, one of the drawbacks of many of these types of accounts is that the bonus can be lost if you fail to make the required (for example, monthly) deposits. This generally negates the benefit of having such an account and it is therefore vital that if you do decide to go for a regular savings scheme, you are able to commit a certain amount of cash on a regimented basis.
| Account | AER | Account Access | ||
|---|---|---|---|---|
 | Icesave Fixed Rate Savings Accounts | 6.50% - 7.01% | Internet |   |
 | Kaupthing Edge Savings Account | 6.50% | Internet | |
 | Alliance and Leicester eSaver | 6.15% - 6.50% | Internet | |
| Icesave Savings Account | 6.05% | Internet | |
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