Savings and Banking

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If you've got money to save you have various options.

The best way forward really depends on what your reason for saving is. This will affect your attitude.

Here are the most common approaches people take towards their savings

Keep it As Safe As Possible

Want your money to Grow / Accept varying degrees of Risk

Children's Savings

Keep it As Safe As Possible

If you want to be completely safe and not risk your money in any type of investment, then you probably want to put it into a bank or a building society. If so you want the one with the best interest rate ie the one where your money will grow the most.

You'll have a choice of two main types of accounts, notice accounts, no notice accounts, either of which could be "on-shore" or "off-shore":

Notice accounts usually pay better rates of interest. You'll have to serve out a pre-agreed notice period in order to withdraw your cash, typically 30 or 60 or 90 days. (Some notice accounts will let you withdraw your money immediately if you pay a penalty).

No-notice accounts are where you can take your money and run immediately, without having to serve out any notice period.

You'll also be able to choose between "on-shore" and "off-shore" accounts.

On-shore means your money is kept within the UK and is subject to UK law (which basically means UK tax).

Off-shore means your money would be held outside the UK - which might give you tax advantages. While it's outside UK law and therefore potentially dodgy, most of the main UK banks operate off-shore accounts so it's unlikely your money will end up disappearing in a revolution, without you having any redress.

However you'd have to make sure what your exact rights are with your chosen bank. (Whatever you do, don't rely on them to behave honourably).

The levels of interest available will depend on the type of account you've chosen. In addition the best interest rates available will constantly change as the competing banks and building societies try and attract more business.

We can show you how to find the latest best rates available without having to research each and every bank or pay an IFA to tell you. Click here

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Want your money to Grow / Accept varying degrees of Risk

If you want your money to grow (as opposed to be totally safe) then you may want to consider investing it.

There tend to be varying levels of risk in different types of investment and you'd probably need to talk to an IFA or investment specialist about what may be suitable.

Often the "fact finding" process they go through with you helps you to realise what you actually want. For example it examines your attitude to risk in some detail.

When speaking to an IFA or investment adviser always be aware that they may simply be advising you to go for a particular investment because of the commission they'll get.

Thanks to the new laws, IFAs have to declare any commission or fees they'll get. So you'll be able to consider this as and when it comes up (ie before you sign anything look for this statement and ask them about it).

You may want to check the section on tracker funds to read about a good method of investing, which isn't often recommended by financial advisers because there's hardly any commission in it. You could at least use the information to challenge any recommendation you're given - which happens to include lots of commission.

We've got a detailed section on investing and the different types of investment. You can read more about it now.

If you want to discuss things directly with an IFA, we have been approached by a reputable company which specialises in investments. Obviously they're interested in selling their services to you but they seem to be reasonable people. They say they'll talk to our readers on a no-obligation, initially free basis. Read more about them or contact them now.

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