Opening a saving account?

Hello everyone. Last year I opened my first saving account and I am thrilled about it. I saved so much money and learned much on this new way to save and let my money grow. I would like to inform all of you who don't know much on this matter.

Basically , who put a small amount of money in a savings account and broke it left untouched for years may be amazed at how the account can grow over time. If you wonder why , this is how : because of the combination of saving on a regular basis, and the impact of interest payments (what the financial world calls "the miracle of compound interest").

Here's how you can slowly build a savings account and experience the significant effect of compound interest. If we put the money in a savings account that pays interest every month, after the first month, the payment of interest will be calculated according to the money that you put in, but the next time the bank pays you interest, you calculate the amount based on the original deposit plus the interest that you received the previous month.

Pursued with the increased numbers, the total amount will earn more interest, and after many years can become a much bigger sum of money. Earnings are called compound interest. You can earn even more in compound interest if the deposit is regularly fed by new funds.
Take for example a savings account that started with 6 £ and with interest at a rate of 3.5 percent each month. If you add only £ 6 each month, the account can grow up to 714 euro after five years. If you deposit a monthly amount slightly above $ 15 as we succeed in achieving a balance of no less than £ 756 after five years. And if you increase the deposits of £ 35 per month, those extra dollars more than the capitalization of interest would provide a balance of £ 2000, after five years.

What can you make of your saving account

Currently, deposit accounts, on average, make more of the BOT and the average of the repo. They are also guaranteed by the Interbank Deposit Protection Fund up to £ 80,291.38 for each bank account 

Alternatives to saving accounts

A good alternative to savings accounts are the "repo". They are in fact a viable alternative in terms of safety, although it is likely that their interest rate is less than the best deposit accounts currently available to investors

How flexible is a saving account ?

It depends on the bank: there is still time deposits that allow the release before the deadline, providing the base rate and without the application of penalties, there are time deposits that can not be achieved, even partially, the deposits before it ends of the bond, and time deposits that allow you to withdraw money before the deadline, according to a reduction in the rate of interest on the amounts remaining in the account. It is therefore advisable to visit the site of several banks that offer these accounts to time deposits and carefully read the relevant leaflet.

Let's compare UK saving accounts

Moneysupermarket.co.uk provide a good idea of the wide range of companies available and most of all it allows you to compare the saving account the most convenient opportunities to choose among.
You can decide to have:

1. an easy access account: very flexible since you can deposit and withdraw your cash pretty much when you like;
2. a Cash ISA, similar to an ordinary savings account, but the interest is tax free;
3. a Fixed rate bond.

Here there are some of the best easy access accounts for you.

EASY ACCESS ACCOUNTS	Account Name	Interest rate
	Nationwide BS MySave Online Plus	3.17% 1.62% bonus 1st 12 months Instant Market Leading Easy Access account for balances over £25,000 2.85% AER for balances £1,000 - £24,999 including 1.31% Gross bonus for 12 months Minimum operating balance £1. Maximum investment £5,000,000 1 penalty free withdrawal per year Rate includes a bonus, you may want to move your money at the end of this period
	Coventry BS Online Saver (3)	3.15%  1.15% bonus 1st 12 months Instant Market Leading Easy Access account for balances below £25,000 Choose monthly or annual interest Maximum investment £250,000 4 penalty free withdrawal per year Rate includes a bonus, you may want to move your money at the end of this period
	ING Direct Savings Account	3.10% 2.56% Gross bonus 1st 12 months Instant Unlimited withdrawals without penalties Interest is paid monthly Rate only available to new ING Direct customers Rate includes a bonus, you may want to move your money at the end of this period Eligible depositors are covered by the Dutch Central Bank’s Deposit Guarantee Scheme up to €100,000. The Financial Services Compensation Scheme does not apply to non UK banks
	Derbyshire BS NetSaver Issue 3	3.06% 2.06% bonus until 30/06/13 Instant Unlimited withdrawals without penalties Maximum investment £5,000,000 Rate includes a bonus, you may want to move your money at the end of this period

ISA CASH ACCOUNTS	Account Name	Interest rate
	Santander 2 Year	Fixed Rate Major ISA 4.00% 0.10% bonus if Rory wins a major Receive an additional 0.10% one off bonus if Rory Mcilroy wins one of eligible golf ‘Majors’ before the ISA matures Minimum deposit £1 Open online and manage in branch or by telephone  No additional deposits or withdrawals are permitted during the fixed term Online access is view only
	Cheshire BS Direct Cash ISA (Issue 3)	3.35% Fixed 2.35% bonus until 30/11/13 Market leading rate Minimum deposit £1,000 Open Online and manage by Post Transfers in are not accepted Rate includes a bonus, you may want to move your money at the end of this period
	Post Office Premier Cash ISA	3.01% 1.26% bonus 1st 18 months Winner of MoneySupermarket.com Supers award for Best Savings Provider Minimum deposit £100 Transfers in accepted Rate includes a bonus, you may want to move your money at the end of this period 2 free withdrawals per tax year, on the 3rd the account must be transfered or closed

FIXED RATE BONDS	Account Name	Interest rate
	Cahoot 1 Year Fixed Rate Bond (issue 3)	3.60% Deposit a minimum of £25,000 up to a maximum of £2,000,000 Immediate access to your money once the account matures No additional deposits, withdrawals or account closure allowed during the fixed term
	Allied Irish Bank (GB) Savings Direct 2 Year Fixed Rate Bond	3.70% Can be opened by new and existing customerS Maximum investment £2,000,000 UK based customer service team Early withdrawals are only permitted in exceptional circumstances at the Bank’s discretion and are subject to interest penalties Additional deposits are not permitted after opening your Bond

And if you are looking for the best children's saving accounts, maybe because you want to be sure that one day your kids will be able to pay their university studies, there are many "kid-friendly" solutions.

Source: investorschronicle.co.uk

Now, I hope that you have an idea on what types of savings account are available , you can get advices on what saving account to choose ( depending on your needs) , you can learn on minimum deposits, short term bonuses, withdrawal restrictions, interests and much more of saving account's world.