Finance - Banks & Building Societies

Banks & Building Societies

Savings Home | Banks & Building Societies | Endowment Policies

Banks and building societies do not normally pay an attractive return on small amounts. However, any saver has to start somewhere and a bank or building society offers the most convenient starting point.

Some banks do not find it cost-effective to consider offering the fixed deposit option to a saver until the amount reaches £5,000. The beginning investor should keep in mind that even at this level the interest paid is less than a larger investor would receive, which simply reflects the time and cost of the bank to place and roll over the small sum.

Building Societies offer similar accounts to investors, but once again the rate of interest paid only rises once the amount increases in value.

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