The best savings account for you

Although money is tight for most people right now and saving is not at the top of everyone's financial agenda, those who are in a position to invest some of their hard-earned money are in a great position to look around for the best possible option. If you shop around there are some good deals to be had, which can give a decent return on your money - but it is worth being aware of the many different saving deals on the market, and how they can work for you.

These allows savers to deposit money at routine periods throughout the year and is one of the most common forms available, though it will often provide a limited return of interest over a year. Most regular savings accounts restrict access to the saver's money and may not let you pay in extra funds should you find yourself in a position of having surplus cash to invest. Though interest rates are often set and can be quite attractive, it is worth remembering that interest is only paid on the amount in the account at any one time. If you are committed to only depositing £100 per month, you will only receive interest on the current balance at the time rather than a total at the end of the year.

A scheme such as this allows savers to deposit as much or as little as they wish at any time they like. As well as offering flexibility in terms of paying in, they also offer flexibility when it comes to withdrawals. With most instant access plans you are able to withdraw at any time you wish, often by using an ATM machine. Although convenient, you are more likely to be offered a lower rate of interest on your money, initially you could be offered a higher introductory rate, but once this period elapses your rate will be subject to standard levels. Instant accounts are not ideal for someone wishing to invest a large amount of money over a long period of time; more so for those who may want to get their hands on their money in an emergency. If you are thinking of opening one you are advised to shop around for the best interest rate available.

Unlike instant access schemes, a notice account will require you to give notice should you wish to withdraw funds. Often a bank or building society will require between 30 and 90 days notice before a withdrawal can be made. It has often been the case that this type of plan offers higher savings accounts rates than instant access schemes, but it is worth doing your homework to make sure you are benefiting from this higher rate. Banks and building societies will often offer variable rates of interest to entice new customers, so you should be aware that moving your money is often a better way to find a good deal.

For long-term savers, an ISA can offer a good return. Most people who have their money in a bank or building society will pay income tax on any interest accrued over the year. A cash ISA allows you to save up to £5,340 in one tax year and you will not pay tax on any interest earned. Though not always offering the highest rates on the market, if you are planning to save a large amount over the year, the fact that you are not paying tax on that money could well lead to you seeing a better return. There are quite a few rules and regulations covering ISAs, so it is worth investigating all the options before committing to one.

This is a form of saving that will offer you a set rate of interest on your money over a designated period of time. Because your money is tied up for a longer period than most accounts, you will often see bonds offering a higher rate of interest. You may be required to make a large initial deposit in order to receive the best rate of interest and you will normally be penalised should you need to get your hands on your money before the maturity date.

Your bank manager or personal adviser will be happy to go through the various savings plans available to you, though they may only offer you their best rates and not the best available. A reputable price comparison website can help you find the best options on the market.