From a holiday pot to an emergency fund, building up your savings can help you achieve goals you’ve set for the future.
But with so many different types of savings accounts to choose from, finding the right one may feel a bit challenging. To help you find the best savings account for your needs, here are some of the different types available.
Fixed rate savings accounts
If you have got long term savings goals in mind, a fixed rate savings account may be right for you. You may be able to get a higher rate of interest compared to an instant access savings account, but you’ll need to lock away your money for a set amount of time. This can be anything from 1 to 3 years, so it’s important to be sure you won’t need access to your savings during the term. If you do access your money, you may need to pay a fee, or receive a loss of interest.
If you’re an HSBC UK current account customer, you may wish to consider one of these:
Instant access savings accounts
An instant access saver can be useful if you’ll need to dip into your savings from time to time. You may find the interest rate is lower, compared to a fixed rate savings account, but you won’t need to pay a fee for accessing your money. Some instant access savings accounts may offer a bonus if you don’t make a withdrawal.
You may wish to consider one of these:
If you’re an existing HSBC UK customer, you may also wish to consider:
Tax-efficient savings accounts
Individual Savings Accounts (ISAs) can give you somewhere to keep your money and benefit from tax advantages.
For the 2021/2022 tax year, the ISA limit is £20,000 and you won’t need to pay tax on the interest your ISA earns. There are a range of different ISAs available.
If you’re an HSBC UK current account customer, you may wish to consider a:
Please note HSBC do not currently offer an innovative finance ISA, or a lifetime ISA.
Under 18s savings accounts
Teaching your children to get into the habit of saving can be a useful skill for later in life and opening a children’s saving account can give them somewhere to keep their money.
You may wish to consider:
This stands for Annual Equivalent Rate. It shows what the interest rate would be before any tax deductions if interest was paid and compounded each year.
With some accounts you have to let the bank know in advance if you want to take your money out. You could pay a penalty, or lose interest payments if you withdraw money immediately. It's wise to check the notice period required before you open a savings account.
Free from any UK Income Tax and Capital Gains Tax.
The rate of interest if interest were paid and not compounded each year.