The savings account that you choose will determine how much money you make on your investment and how much access you have to your money without a penalty. You should think about your options carefully and compare all money accounts before choosing one. Things to consider include the interest rate, the minimum investment involved and what type of access you will have to your money.
Interest rates will vary depending on what financial institution you choose to hold on to your money. It is important to compare rates side-by-side to determine which institution will give you the most return on your investment. Be sure to watch out for introductory rates. Some banks will give you a higher interest rate in the beginning, but lower this interest rate after so much time has passed. For example, the interest rate may begin at 3.06%, but go down to 2% later. This means that the introductory rate was 1.06%. While it is not bad to place your money with a bank that has an introductory, it does mean that you will have to move your money later on if you want to continue getting a good interest rate.
Some banks require a minimum investment of up to £100 or more to open a savings account, while some require as little as £1. Obviously, if you don't have £100 to invest right away, then you will need to choose a bank that does not have this limitation. If you do have £100 or more to invest right away, then your options will be open. One thing to consider is if a bank has a minimum investment, then they may also require you to keep so much money in the account. If there is such a requirement and you don't meet it, then you will be charged a fee on your account.
Each bank has different rules when it comes to where and how many times you can access your money without a fee. Some accounts limit the number of free withdraws you have per year, while other bank give you unlimited free withdraws on your money. If you plan to access your money regularly, then you will need an account that offers unlimited withdraws. Each bank also has different ways in which you can access you money. For example, some banks only offer online access, while other banks offer access via telephone, as the nearest branch, through the post and cash point access.