Is my money safe in a savings account?

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.

How much money do I need to open a savings account?

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.

Do I pay tax on my savings interest?

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. Note that interest on cash in an ISA is completely tax-free. Learn more about paying tax on interest from a savings account here .