Shop around for the best rate
If you've got some money to put away there are plenty of banks, building societies and providers eager to take your deposit.

Before you take the plunge you need to make sure that you understand what risk, if any, your savings will be exposed to. You should decide in advance what you are saving for and how long you want to put the money away.

You might want to build up a nest egg by saving small amounts regularly. Some saving products pay a bonus if you don't make any withdrawals from the account. If you do need to make a withdrawal, you could find the interest rate on the account is reduced.

Some providers specify a minimum amount you have to keep in the account for it to remain live. Read the full terms and conditions and if you don't understand anything, ask for more information.

The best way to compare the ever-changing deals on offer is to use comparison tables in newspapers and on websites.

Lump sum
If you have a lump sum you wish to save shop around to find the best home for your money. The savings market is a competitive area and offers do vary.

Some accounts are fixed term. This allows you to deposit a sum of money for a fixed period of time at an agreed level of interest. But if you need access to the money before the term expires there will usually be a reduction in the level of interest as a penalty.

The interest rates on most regular savings accounts will vary depending on the levels set by the Bank of England every three months. A simple deposit account will have no level of investment risk because it is not tied to any stocks and shares.





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