Hello All,

Before you decide to open a savings account, do a little research on the type of savings accounts that are available to you. Some offer higher interest and bonuses if you are able to give notice before you need to make a withdrawal from your account. If you need fast access to your money you may want a fast access savings account. You can always withdraw from your savings account anytime but you will be penalized for withdrawals that do not follow the rules of the savings account that you choose.

Normal savings accounts

Normal or regular savings accounts offer some of the highest interest rates in the UK but they have strict conditions about payments to the account and withdrawals. If these conditions are not followed you will lose a significant amount of interest. Since withdrawals from these accounts are usually limited to a few each year this doesn’t make this a good savings account for your emergency money. One good point about regular savings accounts is that they can get you in the habit of regular savings. A normal savings account can be started with a little as £5 per month but the amount will need to be paid to the account each month.

CD accounts

Savings certificates of deposit are a good choice if you can put the money away for awhile. Savings certificates offer tax free returns on investments however the certificates must be held for the full term or you will be penalized by a lower interest rate. Savings certificates with a fixed rate, have a guaranteed rate of return after terms of two or five years after which you can take the return on the deposit tax free.

Money market

Money Market deposits are another type of savings account available for residents of the UK who want to invest in a flexible manner. Fixed term deposits with a fixed rate can be arranged for periods of time ranging from one day up to five years. These are a favorite of people who have a large amount of money to invest.

National Savings Accounts

National Savings Accounts are guaranteed but pay a lower interest rate than many other types of UK savings accounts. These are very popular savings accounts in the UK since there is a guaranteed return on the investment. This account is for those who are willing to trade high interest for the security of a guaranteed account.

The type savings account that you choose is dependent on the amount of money you are able to deposit and the length of time that you can leave it alone. If you are unable to meet the conditions of your savings account, the penalties you pay will be a loss of interest on the account. You should choose your savings account carefully so that you can make the most of your money.

Thanks & Keep Sharing!

Never heard about National Savings Accounts. I guess our closest equivalent would be US Bonds.

I don't even bother to own a savings account, to tell you the truth. I keep a checking account, and I invest my surplus income. Why use a savings account when you can invest for a decent return?
I suppose savings accounts are a good first step for people trying to get in the habit of putting money aside, instead of spending beyond their means, but I would like to see that money put back into our financial system in the form of investments, ideally.
Cheers,
Brian from EZ Landlord Forms

I have savings accounts, but I see what you are saying Brian. I think of them more as an additional place to just stash some savings - but they are not huge and I don't get a great return on them. The up side is that they are immediately available if I needed the cash.

My financial advisor told me that you should have about 6-8 months of income at your disposal, not tied up in CDs or bonds, so that in case of emergency, you can get at it.

Thoughts?

I have money scattered from heck to breakfast. I hope someone finds it all when I die. I have a feeling my mom has done the same thing. I don't think this is a wise savings strategy.

"scattered from heck to breakfast" <- I like this phrase! Gotta find ways to use it 3 times today so it becomes a permanent part of my vocabulary.

I have a higher-yield (but not by much) savings account for my emergency fund. It's got about three months' worth of $ in it, not a full 6 but it's what's left of my dad's life insurance. The account is with the life insurance company and I can take from it easily, but cannot add money back into it, which helps me keep my hands off of it! My other savings is linked to my checking and my direct deposit - a portion of my paycheck goes into the savings accounty every month, where I try to ignore it. It rarely gets about $3,000 so it's not like I'm hoarding money there that I could be investing.

Oh, and I have $5 in the credit union savings account, the minimum I need to keep my membership active so I can get low-interest loans

(01-12-2010 11:34 AM)mtomm Wrote:  I have money scattered from heck to breakfast. I hope someone finds it all when I die. I have a feeling my mom has done the same thing. I don't think this is a wise savings strategy.

Me too. I recently started keeping track of what I have on a monthly basis and where it is, just in case.

Love that phrase too

Cool, Lynn, that makes me feel better. I'm hoping there is a paper trail of all my stuff stashed away here in my personal files at work. I'm sure Brent would turn that over to someone and let them figure it out. He'd have little interest in doing so until they found out there was enough money to buy some new tires for his Jeep.

:laugh:

Every once in a while I make a folder w/copies of all my credit cards (front and back, so the 1800 numbers are showing) and deposit account numbers and all that sort of stuff and I put a copy in my files and a copy in my desk at work. Hubby might not find it in the files at home, but I trust whoever cleans out my desk here will find it and hand it to Hubby.

Sometimes spam is helpful, like now, when it reminds me I should update my file at work, and include one at home for Kevin. It also reminds me that I need to get Kevin to make copies too.

yeah, I have to update mine too, and our ID files. I keep copies of our licenses and passports in my desk drawer and at my MIL's house. 9/11 got me thinking about what I would do if I lost my ID, couldn't get home, lost home to fire, etc.

I update the account list (including insurance policy numbers, investments--everything) every year when I certify my family care plan (who takes care of Rory when I'm deployed). It's been a very useful reminder.