A good place to begin your journey is to understand the different types of savings accounts and the many words and phrases used. We’ve put together this handy guide to get you started (or perhaps to get you back on track).
Before you begin, have you thought about what you’d like from your savings, not only in terms of money, but how you’d like the account to operate? What are your reasons for saving and do you have short-term or long-term goals Will you need to access your savings in the near or distant future? Do you plan to contribute regularly? Would you prefer to manage your account online or in-person?
Now that you’ve taken a moment to consider ‘why’ you’re saving, lets take a closer look at ‘how’ you can save.
At the Cumberland we offer a range of savings accounts to support a variety of needs. When comparing our products, always check out the full description to understand whether the product is suitable. Things to consider include interest rates, the number of withdrawals allowed, does the account require a minimum balance?
Full details of our products are available on the relevant product pages but here is a brief overview to get you started:
A Regular Savings account can help you to contribute regularly toward your goals and build a savings routine. These accounts often require a minimum amount to be paid in each month and may have limits on the number of withdrawals that can be made. The benefit is that you will usually receive a higher rate of interest than with instant access accounts.
Our Instant Access account has a variable interest rate but comes with the benefit of having access to your money whenever you need it. You can make withdrawals and transfers at any time without having to pay a fee or give notice, useful for spontaneous treats or regular expenditure. We have a choice of accounts from branch-based to an online eSaver.
Our Fixed Rate accounts provide an agreed interest rate over a set term, a good option if you’re happy to lock away your money for the agreed timescale. These accounts can be ideal for longer term saving and generally offer higher interest than more accessible accounts.
Notice Savings Accounts fall somewhere in between instant access and fixed rate. They work by allowing you access to your savings, but only after an agreed notice period. These accounts generally have a better interest rate than instant access accounts and are useful if you know that you may need access to your savings, should your circumstances change.
Cash ISAs(Individual Savings Account) are for those looking to save money without paying tax on the interest generated. If you’ve used up your personal savings allowance, then it might be worth considering an ISA as your next option. This Tax treatment depends on the individual circumstances of each customer and may be subject to change in the future.
For children we offer a range of accounts to suit the needs of their forward journey. This might be their very first account, or something more suitable to building a pot of money for their future.
You can compare all of our saving accounts here.
Don’t worry, we’ve created a handy Glossary of Terms to help guide you through.
We hope that the information above has helped you to become more confident when considering your future saving plans.
If you do have any further questions or if you’d prefer to talk through the various savings options in person, feel free to give us a call, pop into your local branch or book an appointment with a member of our team. We’re only ever a phone-call, message or branch visit away.