John Head Finance, Independent Financial Adviser - Clerk and Parson, Teignmouth

Savings

Savings are interest-bearing accounts. Not, in our eyes, investments, which require much more advice and consideration.

Savings give you peace of mind and even the most avid investor needs to hold some cash. But they rarely give you a return above inflation.

Savings accounts can be tax free when held as Cash ISA's (Individual Savings Accounts) or the interest can be claimed without tax deducted if you are a non taxpayer - otherwise tax is deducted at 20% from the interest.

If you are a higher rate taxpayer, then additional tax is payable at your highest marginal rate.

Manchester Building Society

Apart from the financial stability of the deposit provider, the prime decision you make will be focused on the interest rate offered. Interest rates are constantly changing so you need to keep chasing the best rate.

John Head Finance, Independent Financial Adviser - Lights in the dark

John Head Finance has run an Agency for Manchester Building Society for many years with deposit and withdrawal facilities available in our office 9am - 5 pm, Monday to Friday.

You can check the available account options and the current interest rate on an existing account from Manchester Building Society.

Please remember to call into our office in Teignmouth where you can receive personal advice on the best account option for you, open your account and arrange all deposits and withdrawals.

You can also obtain an overview of current interest rates available from other deposit providers.

Risk

The only real risk is the financial stability of the Bank or Building Society with whom the deposit is held.

They are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society or bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to £85,000.

For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank or building society, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) refer to the FSCS website.

Savings Calculator