Whether you have a savings account or an ISA, you need to manage them correctly or you could lose out on interest. Here is how each account works and how they can help your money grow.
Each savings account or ISA operates differently, this table gives you an overview of when you can pay in, withdraw or close your account:
|Type of account||Pay in||Withdraw or close|
|Instant access||Any time||Any time|
|Notice||Any time||After notice is given, or incur penalty|
|Fixed term||Not allowed||Incur penalty on whole amount*|
|Stocks and sahres||Any time||Any time|
* Excluding maturity
Instant access: You can withdraw money without any charge or penalty.
Notice: You have to give notice (for example, 60 days) before withdrawing your money. You can withdraw straight away but you will face an interest charge based on the length of the notice period.
Fixed term: The only way to withdraw is by closing the fixed term account. The exception is when you reach its maturity date (end of the term), and the account becomes instant access.
Stocks and shares: You can add or withdraw your money at any time, but you may need to pay a fee each time you do.
If you withdraw from an ISA you can only pay in up to your maximum ISA allowance until the end of the currency tax year.
You can pay money into your savings account by using:
Cash (the quickest way to get money into your account)
A bank transfer (depending on the account, it can take a couple of days)
A cheque (can take up to a week to clear in your account)
Some accounts let you earn interest immediately on any money deposited as a cheque, but usually you will need to wait until the cheque has cleared before you earn any interest on it.
You can add money to an instant access or notice account whenever you want, but a fixed term account only lets you pay in money at the time of opening.
Once your fixed term account has matured it will become instant access, meaning you can add more money again.
For example, if you invested in a three year fixed term bond on the 1st January 2019, your maturity date will be three years later on the 1st January 2022.
Pay in cash or a cheque at the cashiers' desk: You will need your account details if you do not have your account passbook, certificate or card.
If you do not have your account details either, the cashier can usually process your request by asking you some security questions.
Pay in through branch self-service: Some branches let you pay in money in using envelopes, which are deposited to be paid in later by members of staff.
To do this, you will need to write your account details down on the envelope, or fill out a paying in slip, so the provider knows which accounts your cash or cheques need to be paid into.
You can either transfer the funds from another account with the same provider, or transfer funds from another account elsewhere.
If you pay a cheque into another account first you have to wait for it to clear before you can transfer the money across.
You can send money to your savings account through a bank transfer by quoting your account details. This can be from the same provider or another.
You may be charged for adding more money to your stocks and shares account, so make sure you ask your provider before doing so.
You can pay money in by:
Sending a cheque to your stocks and shares provider, quoting your investment account number
Transferring the funds directly into an online managed investment platform (if you use one to view your stocks and shares account online).
If you are not sure what your investment account details are, check your stocks and shares paperwork.
If you still cannot find your account details, contact your provider for help.
Go to your provider's cashier and ask to make a withdrawal.
You will need your account passbook or certificate if one was issued when you opened the account.
Cash withdrawal: You should be able to withdraw small amounts up to £500 without any problem.
If you want to withdraw more than £500, some providers ask that you give a few days' notice and provide a form of identification*.
Cheque withdrawal: You should have no problem withdrawing a cheque up to the value of £10,000 from most providers.
If you want to withdraw more than this you may need identification*.
* For example; a passport or driving licence.
If you are not sure what you need to take with you when you withdraw, call ahead and find out so you do not make a wasted trip.
If you operate your savings account online, you can transfer money to another account with the same provider or to a nominated account elsewhere.
You can then withdraw the funds in a branch (or an ATM if you transferred your money into a card account).
You need to contact your stocks and shares provider and ask to make a withdrawal.
You can do this at any time, however you will need to give yourself enough time for the money to be transferred into your nominated account (up to 24 hours) before you can physically withdraw the money
You will have chosen a nominated account when you first made an investment into your stocks and shares account.
There should not be any charges to withdraw money from your stocks and shares account, but make sure you ask just in case.
You have to follow the same rules that apply to making a withdrawal from your savings account.
Remember, if you put your money into a fixed term deal then you will be penalised for closing the account early.
The same applies to notice accounts. Do not close your account before you have held it for at least the notice period or you could end up with less than you put in.