Savings accounts explained
Here's our guide to savings accounts. Find out how they work, the types we offer and how you can get into the habit of saving.
When you save with us, you become a Nationwide member.
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How savings accounts work
Savings accounts provide a place for you to put your money aside. You’d use these accounts to help you save up for when you need it. They aren't meant to be used for day-to-day spending.
There are many types of savings accounts, with different rates and terms. You'll earn money on your savings based on your account's interest rate.
Types of savings accounts
Our range of savings accounts offer different options for accessing your money. These can include:
Instant-access savings accounts
You can pay in and take out money whenever you need to.
Limited-access savings accounts
Often offering a better interest rate than an instant-access account. The difference is that you'll be limited to a certain number of withdrawals in each account year to keep that interest rate.
Fixed-rate savings accounts
A way to save a lump sum for a fixed amount of time. Your interest rate is fixed, so it won't go up or down. For some fixed rate accounts, you can’t take out your money before the term ends. For others, it's not possible to take out money without paying an early-access charge.
Choosing the right savings account
What you're saving for can affect the account you choose. Some savings accounts we offer are designed for a specific purpose.
The difference between an ISA and other savings accounts
A cash ISA is a type of savings account where the interest you earn is tax-free. So you could get more for your money.
The amount you can put in an ISA is set by your ISA allowance. This is the most you can save in an ISA in each tax year. For 2022/23, the allowance is £20,000.
Like other savings accounts, cash ISAs can also offer different options for accessing your money. These can include: limited access and fixed rate cash ISAs.
Regular savings accounts
Regular savings accounts are specific accounts that can help you get into the savings habit. They usually come with limits on how much money you can put into your account each month.
Saving for your child's future
Our Future Saver account is designed to help you save for your child. This limited access account is for parents, or those with parental responsibility.
Business savings accounts
You can't use our personal savings accounts if you want to save for your business. Instead, our business savings accounts can help you make the most out of your organisation’s cash reserves.
Paying tax on your savings
When you save, you may have to pay tax on the interest you earn on your savings.
As a saver you have what's called a Personal Savings Allowance (PSA). Your PSA is the most you can earn in interest on your savings before you're taxed.
How much your PSA is depends on the rate of income tax you pay. For example, basic rate taxpayers can earn up to £1,000 in tax-free interest each year.
Helping you save
Getting into the habit of saving can be difficult.
Our personal savings accounts can help you get started. Whether it's putting away a lump sum, or saving more regularly each month.
We also have a range of tools and guidance for our members to help make saving easier. Like setting up our Impulse Saver tool in our Banking app.
Protecting your money
The Financial Services Compensation Scheme (opens in a new window) (FSCS) is a free, independent service that protects up to £85,000 of your eligible money at Nationwide.