Before opening a savings account, it’s crucial to consider what type of account you want to open. There are several types of accounts to choose from and they all work slightly differently, so it’s important to think about what is best for you. Below is a quick outline of the different types of savings accounts:
Easy access savings accounts. Allows you to top up your funds and access them whenever you need to. You’ll also receive interest on your balance.
Fixed rate bonds. You’ll need to lock away your funds for a set term of between 6 months and 5 years. In return, you’ll earn a higher rate of interest. You can’t usually top up your savings during the term, so bonds are best suited for those with a lump sum to invest.
Notice accounts. You can access your money provided you give a certain number of days’ notice. The amount of notice required will depend on the account. You will usually earn a better rate of interest compared to an easy access account.
Regular savings accounts. You will be required to pay in a set amount each month, typically for 12 months. You usually won’t be able to access your money during this time, but this varies depending on the account.
Cash ISAs. You won’t pay any tax on the interest you earn in this account. You can typically choose from easy access and fixed rate cash ISAs.
Save smarter with a high-interest saving app
Open an account in less than 5 minutes, then track it from your phone. Plus explore a range of features like round-ups, auto-saving, pots, goals and more.
You can usually open a savings account in branch, online, via post, over the phone or by using the provider’s app. Exactly where you can open your chosen account will depend on the savings provider and the type of account. When comparing accounts, it’s important to check this. After all, there’s no point picking an account only to discover it must be opened in branch and there are no branches in your area. There are also app-only savings accounts that can only be opened and managed via the app.
In most cases, you’ll be required to fill in a short application form. This might be online or you might be required to send it by post. Alternatively, someone might be able to help you fill it in over the phone or in branch. You will usually be required to provide your full name, date of birth, address history and contact number.
Which documents are required?
As well as providing personal details, you will usually be required to provide proof of ID and proof of address, unless you’re already a customer with that particular bank/building society.
For proof of ID, you will usually be asked to provide a valid UK passport or driving licence. For proof of address, you will usually need to provide a utility bill, council tax bill, bank statement or mortgage statement. If you’re applying online, some accounts will accept your documents electronically. Otherwise, you might have to pop into your local branch with them.
How to open a joint savings account
Joint savings accounts can be opened in much the same way as individual savings accounts, but you will usually need to provide proof of ID and address for both of you.
Note that not all savings accounts can be opened on a joint basis. But if you are planning to open one, it’s important to be sure you completely trust your partner. That’s because both of you will be able to access the funds in the account. If you’re concerned about this, some accounts will let you set them up so that you both need to authorise any transactions, which means both of you will need to agree before any withdrawals can be made. Learn more and compare joint savings accounts here.
Boost your savings with FREE interest rate alerts
FREE interest rate alerts
Sign up to receive the latest deals, expert tips, and a chance to win £400! (T&Cs)
Many savings accounts can be opened with as little as £1
Cons
The best interest rates usually apply to accounts that require you to tie up your money
Some accounts have variable interest rates, meaning your rate can go up or down
You may need to meet certain eligibility criteria to open one
Bottom line
Opening a savings account is usually pretty straightforward. You can use a savings account to put money aside for emergency expenses, to save for the future or for a particular purchase such as a new car or holiday. Just be sure to research your options carefully so that you choose the right type of savings account for you. You can compare a range of savings accounts here.
Frequently asked questions
Yes, as long as the bank or building society you're considering is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme (FSCS).
This means that up to £120,000 per person, per banking institution, will be covered in the event the bank went bust.
Many savings accounts (particularly easy access accounts) can be opened with as little as £1. However, some accounts will require a larger deposit, potentially a few hundred or a few thousand pounds, so make sure you check first.
Thanks to the personal savings allowance, basic rate taxpayers can earn up to £1,000 in savings interest without paying tax, while higher rate taxpayers can earn up to £500. Additional rate taxpayers do not receive a personal savings allowance.
You can open as many savings accounts as you like, meaning you can have different accounts for different purposes.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time.
See full bio
Revolut now offers savings accounts to its customers, known as Savings Vaults. You can get interest of paid daily, but the rate depends on which level of account you have. Find out whether Savings Vaults are a good option for your spare cash.
Our research found that 41% of Brits work from home at least some of the time. We look at who is working from home and how commuting costs may impact working patterns.
Kickstart your savings plan with a high interest savings account.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
