Savings accounts

Wednesday, 22 November 2006 03:23

Savings accounts are accounts held by banks or building societies into which people can deposit money and receive interest payments.

Rates of interest paid can vary widely between providers.

The highest rates of interest paid on savings accounts typically come with heavy restrictions on how money is paid in and when it can be accessed.

Some accounts allow instant access to savings and unlimited withdrawals, others impose penalty fees unless savers give appropriate notice to providers of the intention to withdraw money, or impose limits on the number of penalty-free withdrawals allowed each year.

Other accounts offer high rates of interest based on the regular nature of contributions - typically between £10 and £250 a month - with access to the money after a year (regular saver accounts).

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