When you are trying to save money it is best to find the right type of account to keep it safe and this could be a savings account or an ISA.



An ISA is an effective way to save large sums of money and be a secure account to keep the money from being used daily.

There are different forms of ISA’s including, Cash, Stocks and shares and lifetime which you can set up depending on what your purpose is.



  • A tax efficient way to save money
  • Your money will be passed on to a spouse or civil partner if you die.
  • Option of a lifetime ISA where the government will give you a 25% bonus to buy a house.
  • A great option for saving larger amounts where you can earn more.
  • Investment opportunities.


  • Annual deposit limit- usually £20,000.
  • Limited on when and how much you can withdraw from your account.
  • Some will have exit fees.
  • You can only open one type of ISA a year.
  • Must be over 18.


Regular savings account


Having a savings account is essential for savers and the most common way to save. This could be with a bank of your choice and will give you an easy way to put money away.

There are different forms of savings accounts including, easy access, fixed term and notice accounts.


  • You can easily withdraw money making this a more flexible option.
  • Easy to set up and transfer money with no limits on deposits.
  • Junior accounts are available for over 11 and a great way to teach financial responsibility with supervision.
  • You can open as many savings accounts as you need



  • You could be taxed on your interest earnings.
  • The interest rate fluctuates and so you could have to change your bank.


Opening an ISA is popular for longer-term savings such as for buying your fist home whereas a regular saving account is great for short-term savings when you need flexibility.

Often you will be able to earn better interest rates with a regular savings account as most people don’t reach the threshold for paying tax on earned interest.

You could also open both an ISA and regular savings account to help you save.