It can be something of a time consuming task when you first set about looking for not only a safe haven for your spare funds, but also looking for the best returns you can get from the many different types of investment opportunities that are available to you from a Building Society.
With that in mind and to save you getting somewhat overwhelmed with the many different types of investment funds and opportunities that will be offered to you when you seek advice from staff in a Building Society, we have put together this website to enable you to take a step back and research each type of investment opportunity that will be on offer and available to you.
Types of Building Society Savings Accounts
There are a range of different savings accounts that you will be able to open at all Building Societies and each of them will fall into one of the following categories of accounts. So please so read on as one of these types of accounts may be suitable for you personally.
Easy Access Accounts – The most basic type of Building Society saving account is the Easy Access account, you will however find that when it comes to the interest your savings will be making on this type of account it will be the lowest interest rate offered.
However, if you do want unrestricted access to your savings at any time and without the need to give notice on a withdrawal then this type of account may be most suited to you.
Fixed Term Accounts – Some of the very highest returns on a savings account that you will be offered from all Building Societies are for the Fixed Term Savings accounts.
When you open up this type of account the funds you pay into the account will then be locked away for at least one year. Making a withdrawal from such an account may not be possible until the fixed term has expired, or if withdrawals are permitted you will lose out on the enhanced interest rate on your savings.
If you are able to lock away your savings for several years, then the amount of interest these types of savings account will earn will be much greater than if you tie up your savings for just one single year.
Regular Savings Accounts – Many investors are only able to set aside a small amount of cash each month into a saving accounts, and if that is something that you can afford to do then a Regular Savings account may be best suited to you.
There can be some slightly higher interest rates being offered on this type of savings account when compared to the interest your savings will earn in an Easy Access type of account, but you will have to set aside and pay into this account a certain minimum amount each month of the year to benefit from that increased interest rate.
The amount you can afford to pay into this type of account per month will often determine the guaranteed rate your savings will be earning over any given period of time. So do think carefully if the minimum monthly amount you will need to pay into this account is affordable.
Tax Free Accounts – There are two main types of Tax Free accounts that you will be able to open at any Building Society however both of those accounts are ISA based savings accounts.
You will be able to open one of these accounts when you are at least 16 years of age and the two account types are a Cash ISA and a Stocks and Shares ISA.
Please read on for in the next section we will be introducing you to both types of ISA in a little bit more detail which will enable you to make a much more informed decision and judgement call as to whether they will be the best type of savings account to open based on your current financial situation.
Online Savings Accounts – You can often get a slightly higher interest rate than is available on a standard savings account if you opt for an online savings account from several different Building Societies. However, you will obviously have to manage your account solely online to benefit from the increased interest rate, but these accounts are ideal for computer savvy investors.
In addition to the many different types of savings account listed above that can be opened at any time at a Building society, you will also find a range of unique investments will also be on offer to you.
With that in mind in this section we shall now take a look at those additional investment opportunities which may just be more suited to you.
ISA’s – If you are aged over the age of 16 then you are going to be allowed to open a Cash ISA in which, based on the current rules, you will be able to invest up to £15,240 in the current tax year.
However, if you are aged over the age of 18 then you can open up either a Cash ISA or a Stocks and Share ISA with the same maximum investment amount in the current tax year or a combination of both types of ISA.
Be aware that the total amount you have invested in both of them combined must not exceed £15,240. That figure is likely to change when announced in the annual Budget given by the Chancellor of the Exchequer.
Stocks and Shares – You will be able to purchase stocks and shares from a Building Society and may be interested in building up your own portfolio of stocks and shares with any spare funds you have available.
However, there is always going to be risks involved in these types of investments and they are certainly not for everyone. Whilst some investments in stocks and shares can offer different levels of risk, the risk factor involved does need very careful consideration.
Obviously both profits can be made as well as losses can be made and experienced when investing in stocks and shares and you should only ever invest money you are prepared to lose.
Buy to Let – One addition investment opportunity that may be worth investigating is in the Buy to Let property market. This type of investment will usually see you using your funds as a deposit for a mortgage and that mortgage will then be used to buy a property which you then let out to tenants.
There are of course risks involved in this type of investment as you will always be at the risk of house prices falling, however for a long term investor looking for some high returns, as long as you can let out your chosen property it is one way of securing a long term and high return,
which could be enough to pay off your mortgage and allow you to set aside savings on the rent charged on that property.
Low or High Risk Investments?
When you do have some cash set aside to invest, then one aspect of investing those funds that you will need to pay careful consideration to is the element of risk you wish to have attached to any saving accounts or investment opportunity you are thinking of making.
One of the main advantages of choosing to invest your funds in a saving type account at a Building Society is that your funds will be protected up to a certain account by the Financial Services Compensation Scheme.
Many people tend to spread their risk over accounts held at several different Building Societies to reduce the element of risk and to ensure that in the highly unlikely event or more than one Building Society in which they have savings fail, they will not lose out financially.