Savings Account
A savings account is a general term for an account that helps you save money by providing interest on the money you hold in the account.
What it means
A savings account is a general term for an account that helps you save money by providing interest on the money you hold in the account. Unlike a current account, it's intended for money you don't need to spend every day.
You keep £5,000 in a savings account earning 4% AER. If the rate stays the same for a year, you'll have about £5,200 in the account at the end of the year.
Why it matters
Choosing the right savings account can help your money grow faster without taking investment risk. You do however need to take into account the impact of inflation.
Interest rates vary between providers, so regularly checking your savings rate could increase how much you earn.
Is my money safe in a savings account?
Eligible deposits with UK-authorised banks and building societies are usually protected up to the FSCS limit.