Savings Decision Tool

Compare savings accounts by looking at the interest rate, how long your money will be invested, whether you can access your savings, how interest is paid and whether tax-free savings through a Cash ISA are important to you. Our Savings Decision Tool could be useful when narrowing down your options.

An Easy Access account lets you deposit and withdraw money whenever you need it. A Fixed Rate Bond normally requires you to leave your money untouched for a set period in return for a fixed interest rate. A Cash ISA works similarly to other savings accounts but allows eligible savers to earn interest tax free, subject to annual ISA subscription limits and current tax rules.

Many savers choose to keep money in different types of accounts. For example, you might keep an emergency fund in an Easy Access account while placing longer-term savings into a Fixed Rate Bond or Cash ISA. The right approach depends on your financial goals and whether you’ll need access to your money.

No one can predict future interest rates with certainty. If you feel knowing exactly how much interest you’ll receive is a priority for your savings, a fixed-rate account can offer a fixed interested rate for a set period. If flexibility is more important, an Easy Access account lets you deposit and withdraw money whenever you want, although the interest rate can rise and fall over time.

That depends on what you’re saving for. If you’ll need access to your money, an Easy Access account offers more flexibility. If you’re happy to lock your money away for a fixed period, a Fixed Rate Bond or Cash ISA can provide a guaranteed return. Our Savings Decision Tool can help you compare your options. Everyone’s saving journey is different, make sure you explore all your options to find the right solution for you.

The amount of interest you earn depends on your starting balance, interest rate, how long you save for and whether your interest is compounded.

There’s no single answer and everyone’s individual circumstances will differ. The amount which works for you will depend on your income, expenses and goals.

You could create a budget and work out how much you can afford to save each month. This would also give you some realistic ideas of how long it will take you to reach your savings goals.

This depends on the savings account you choose. Some accounts pay interest monthly, while others pay it annually or at maturity. Some also let you choose whether interest is added to your savings (compound interest) or paid into your nominated current account. You’ll need to check the accounts T&Cs for details.

Compound interest is interest earned on your initial savings plus interest earned on the interest each year. For example, in year one, money invested will earn interest. In year two, interest will be earned on money invested plus year one’s return and so on.