“ Online savings bank account. „
Halifax - "the bank who give you extra" have all of their branch based savings and current accounts but they also offer online savings accounts. The fixed web saver they offer currently has an interest rate of 2.8% AER (correct at time of writing 7.1.10). You can open the savings account online with just £1 - so its' quick and easy to open up a new savings account, and with access online 24 hours a day, 7 days a week you can add funds to the account whenever you want to without worring about branch opening hours and queue. There's no maximum amount you can save in the account (although many people limit themselves to £50k per lender due to the governments compenastion scheme limits). Withdrawals are permitted at any time; however, you only recieve one withdrawal per year penalty free any additional withdrawals will incurr a penalty of 30 days interest - possibly a good incentive to save your cash and not take it out unless you really need it. Also, if you already hold a current account with Halifax they will icrease the interest rate you recieve by 0.20%. If you are looking to open this account, please check the current interest rates compared to other savings institutions as these may change from the time of writing.