Published: 31 May 2024
The world of savings accounts can be tricky to navigate. But picking the right one can make a huge difference to achieving your savings goals.
One big thing to think about is how to get started and actually open that savings account. The good news is there’s a few ways you can do this:
• over the phone
• in a branch
• online
• by post
With some accounts, you can only open and service them in a certain way. For example, we have Online Easy Access accounts within our range which you can only open and access online.
Check online how you can open the savings account you have in mind. Our website clearly shows how our different accounts need to be opened.
What is an ISA savings account?
ISA*** stands for Individual Savings Account and it’s an account where you can earn tax-free* interest. As the name suggests, an ISA can only be opened by a single user, which is different from other types of savings account.
For more on this, read our article – What’s an ISA Account?
Or if you’re unsure whether an ISA or another savings account is right for you, check out our ISA vs Savings Account article.
How does interest work on a savings account?
Pretty much all savings accounts come with a rate of interest. This is a percentage of your savings pot that’s paid monthly or annually on top of what you already have saved up. For example, if you deposit £1000 in an account with an interest rate of 4% per annum, you will gain £40 in interest during that year (subject to account specific terms and conditions and the saver’s Personal Savings Allowance).
Remember – interest rates on savings accounts can differ between fixed and variable. A fixed interest rate won’t change during the fixed term of the account provided you comply with the account’s terms and conditions. But a variable interest rate can go up or down during the account term.
How does a savings account work?
A savings account is a safe place to put your money and gain interest to help it grow. The interest amount and type (fixed or variable rate), account term and any restrictions that apply can all vary. So can the ways to open the account.
With some accounts you can save money monthly, annually - or whenever you like. This could be useful if you’re not sure when you’ll have money to save or can’t commit to a regular deposit amount.
And if you need to find an account to save a lump sum that you just need to deposit once, there’ll be savings account which will allow you to sit back and watch it grow.
Explore our savings products to get an idea of what account might be right for you. And if you need more information, Home and Money is a good place to start.
You can also use our saving account calculator to work out how much to put away to reach your savings goals.
Can I open a savings account online?
Many savings accounts can be opened online, but to open certain accounts you may need to visit a branch or send a form in the post. Check the bank or building society’s website to see if you can apply for a savings account online.
Can I open a savings account in branch?
Most savings accounts can be opened in a bank or building society branch. But there are some accounts, such as e-savers, you can only open and manage online.
You should be able to check online if certain accounts can be opened in branch – you can do this on our website. Also, use our helpful branch finder tool to check where to visit our branches across the UK.
Time to start saving?
Now you’ve got the lowdown on how to open a savings account, it’s time for the exciting bit – getting started!
This guide is intended as a summary only and does not constitute legal or financial advice given by Leeds Building Society. No reliance should be placed on this guide. We recommend that you seek independent legal advice and/or financial advice if you have any questions or queries.
*Tax-free means that interest payable is exempt from income tax ** Deposits in any tax year are subject to the limits set by HM Revenue and Customs (HMRC) and may therefore be subject to change. *** ISAs are available to individuals aged 18 or over who are resident in the UK for tax purposes.
