If you are looking for a Building Society Savings Account you will see they offer 1,000s In April 2011 building societies had more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK and mutual deposit takers account for about 36% of cash ISA balances. Below you can find a brief explanation of the types of savings accounts that are available to savers.

Types of Savings Accounts and What is?

Instant Access/Easy Access -

These accounts are generally called easy access saving accounts or instant access savings and as the name says gives you exactly that-easy access to your savings. Some of these accounts also often offer a cash point card allowing you to get access to your savings from an ATM machine. Because no notice is required to gain access they generally offer lower rate of interest than notice or fixed rate bonds. One thing to be wary of is introductory rates where banks and building societies offer an enhanced interest rate for the first 12 months then reduce the rate substantially. It is great to get the enhanced interest rate offer but put a note in your diary to look and move the funds after 12 months.

Fixed Rate Bonds -

An investment in a Fixed Rate Bond is ideal for savers who are looking for a savings account that is for a fixed period of time and offers a fixed interest rate. Typically these are offered for terms of 1, 2, 3, 4 and 5 years with the longer periods offering the highest interest rates. Be aware though that you are getting a higher rate because you are locking in your savings for a fixed period of time so are not suitable for those who might need immediate access to their money. Some companies will allow you to withdraw funds early with a loss of interest while others allow no early access so check the terms before applying. Investments are generally from £500 or £1,000 although some building societies will let you open an account with as little as £1.  

Notice Savings Accounts –

Notice savings Accounts are different to the traditional instant access savings accounts because you do not get immediate access to your savings but will have to tell the building society when you want to withdraw some or all of your savings before you want it. This accounts normally come with notice periods of 30, 60, 90 or180 days allowing you to choose the notice savings period that is best for you. If you need to access the savings money straight away, normally you will incur an interest penalty, and this may be deducted from your savings account capital balance if you haven’t earned sufficient interest to cover it.

ISA's -

An ISA (Individual Savings Account) were introduced by the government in 1999 to encourage people to save and invest more. For the tax year 2011/2012 the ISA allows you to save up to £10,680 a year without having to pay tax on the interest you earn. Savers can invest in two separate ISAs in any one tax year allowing you to put up to one £5,340 in a Cash ISA and £5,340 in a Stocks and Shares ISA. You are not allowed two of the same type of ISA.

This means that in the current year you can put a maximum of £5,340 in a cash isa and the rest in a stocks ISA alternatively you are allowed to put the full amount of £10,680 in a stocks ISA. If you want you could put for instance £7,000 in a stocks and shares and the remainder in a cash isa. Building Societies offer a wide range of Cash ISA’s and you can choose from instant access, notice and fixed term ISA’s.

Regular Savings Accounts -

Regular Savings Accounts are good for those who are looking to save regularly and will normally pay a higher rate of interest than an instant access savings account. Typically you can choose to save £10 and £250 a month. These accounts also often pay an extra interest bonus for making 12 monthly payments but be aware if you miss payments or take out money early, you might be penalised with a loss of interest; so read the small print to see how often withdrawals are allowed and what penalties if any are imposed for missed payments. 

Typically savings accounts can be operated via a number of routes including a building society branch, or by post or on the internet. Due to the lower costs of operating an internet only account these can often offer savers the best savings rates.