Savings accounts: the different types of accounts and their terms

Banks are finally offering savers better rewards alongside increasing mortgage interest rates. To attract new deposits, banks are offering deals with higher interest rates than have been seen for years.

However, many banks and building societies are also quickly pulling the deals once they’ve attracted enough customers so that the products don’t become oversubscribed. Therefore, savers looking to capitalise on better rewards may need to move quickly to avoid missing out.

But before signing up for a new product, it is important that people understand the terms of their savings account before moving any money. The type of savings account that will be right for you will depend on a number of factors, including how much money you have to save and how easily you want to access your money.

Find out below what different savings accounts are available and what their terms are, so you know exactly what you’re getting.

Easy access

Easy access accounts let you withdraw money whenever you like without having to pay.

Fixed rate

Fixed-rate accounts offer customers a fixed interest rate over a period of time, such as one year.

Regular saver

Regular saver accounts typically require customers to save a certain amount every month, and they often have stricter rules about withdrawing money compared with an easy access account.

ISA

An ISA, an individual savings account, lets customers save up to £20,000 per tax year without paying tax on the interest.