Product Types For Savings

There are three many ways to save. You have a bank and building society savings account, national savings and investments, and credit union savings accounts. There are of course regular savings accounts and special Christmas accounts that you can find through the bank and building society accounts. You will find the bank and building societies in the UK are regulated to make sure the money is there and in holding. Even the credit unions in England, Scotland, and Wales are going to be regulated to make sure everything is on the up and up. The regulations are set up by the Companies Registry in the Department of Enterprise and the Trade and Investment Company.

Savings accounts are very important to many as they are a way to get a slightly higher interest rate than current accounts. You will be able to find savings accounts at banks, building societies, and through the National Savings and Investments. Usually you are going to find the savings accounts are low risk investments for a short to medium term savings plans. The savings accounts are based on deposits. This means you are going to place the money into the account on a regular basis. You will also get the money back plus interest when you close the account. The more income you supply to the savings account the more interest you will earn. The thing to be careful about with savings accounts is whether the bank or building society will collapse. If it collapses you may have a few issues. If you have chosen a bank or building society that is part of the Financial Services Compensation Scheme or FSA you will be fine if the bank itself collapses. The FSA regulates the companies and can pay compensation for a collapse.

For other ways to save you have the Christmas hampers or gift vouchers. You will find Christmas saving schemes and clubs that are run by supermarkets, large retailers, local shops, social clubs, pubs, and workplaces. These clubs offer you a way to save what you can in exchange for stamps or shopping. You can even obtain vouchers to spend or buy other goods and services. You are not earning interest on the money you are savings, so there is a downside to these schemes, however you still get a little benefit of the vouchers and stamps. The vouchers and stamps are going to be for specific items. The Christmas hamper schemes are not as regulated as banks either therefore you need to be careful.

A regular savings is when you ask your bank to set up a savings account that is linked to your current account. You will choose a certain amount of money to go into the savings account each month. It is called a standing order. As long as you have the money in the current account it will transfer to the savings, and start you a little nest egg. You will be earning interest on that money.

Back To Financial News January 2008

Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts
Sainsbury’s Bank Internet Savings Account
Product Types For Savings
Saving with Child Trust Funds
Savings and Investments Advice
Trouble Ahead with Free Banking
Warning: Savings Rate Change