Savings accounts aim to build up a lump sum of money over a period of time. Normally, you pay your money into them and in return they’ll pay you interest on that money. You might decide to put away a small amount of money on a regular basis, or alternatively invest a larger lump sum. Whatever you’re saving for, there are a number of options available and normally no set-up fees or charges apply.

Before choosing a savings account, it’s a good idea to consider the different ways you could save. Here’s a quick outline of what’s on offer

ISAs allow tax-free saving. Two seperate ISAs can be invested in during any one tax year: a cash ISA and an investment or equity ISA.

Instant access savings accounts allow you to withdraw money when you need it, usually without incurring any penalties. These accounts offer you the security of knowing you can access your money whenever you like. However, they do usually have the lowest returns.

Internet savings accounts are solely operated over the internet. Cheaper running costs are usually passed on to the customer in higher interest. Therefore, they usually offer better interest than branch based accounts. Transactions are usually limited to and from a current account and there is normally no notice required to access your money.

Notice savings accounts can penalise you for withdrawing money without giving the required notice. Normally, these accounts offer a better rate of interest than instant access – but you should be confident that you won’t need your money in a hurry.

Regular savings accounts require you to pay a set amount of money into the account every month. Accounts can be open ended or for a specified period of time, usually one year. With some accounts, it may be possible to vary this sum. Typically, you’ll not be able to withdraw from this account without incurring a penalty, and you will have to make the payments for the specified period in order to earn the advertised interest rate.

Children’s saving accounts are specialised accounts which are usually restricted to savers aged 18 years or under.

Specialist over 50’s accounts often have additional features such as bonus interest for making a small number of withdrawals. Interest can be fixed or variable and accounts can be either notice or no-notice.