Whether you’re putting a bit of cash away for a rainy day or saving for something special, here's our family online guide with tailored advice for parents on choosing the best savings option for your circumstances.

It can be hard to know what to look for in the modern world of banking: which account will keep your money safe, while giving you the extras and treatment that you need. Here are some things to bear in mind when choosing your family-friendly savings account.

Decide what you want from your savings account

Consider the following.

• Access – in general a flexible account where you can withdraw or deposit money at any time will have lower interest rates and vice versa

• Payments – consider how much money you want to save, and whether you prefer to pay a lump sum up front or a series of regular deposits, or a mixture of the two

• Period of saving – generally the longer you save for, the more interest you will accumulate, but locking your money away for years will mean you might not have access to it in a time of need

• Interest rate – a fixed rate guarantees you a certain return, whereas a variable rate of interest is more uncertain because it varies with Bank of England interest rates

Pick your savings account

• Easy access or instant access account
  • Flexibility high – you can generally deposit and withdraw money when you need to
  • Interest – often lower interest than other saving options

• Regular saver accounts
  • Flexibility moderate – you make monthly deposits for a fixed term (usually 12 months), there are usually restrictions on how much you can pay in and take out
  • Interest – good interest rates, but maximum deposits are low (usually about £250-£300 per month) so the interest you can earn on your savings is limited

• Notice account
  
  • Flexibility low – you can only access your money if you give notice (usually 1-3 months in advance), and pay a penalty for accessing money without giving notice
  • Interest – good interest rates, but these may go down if you make withdrawals, may get a bonus for not taking money out

• Fixed rate bonds
  • Flexibility low – you lock away your money for a set amount of time (between 6 months and 5 years) and get a set amount of interest at the end of that period. Generally you pay in a lump sum at the beginning and can’t make payments into the bond later on.
  • Interest – good for long term savers as it protects you from rate cuts, but you might not get the best deal if you are locked into a fixed rate bond and interest rates rise

• Cash ISA (Individual Savings Account) ISAs are a government scheme to encourage people to save and are available in a variety of different forms from a number of different banks
  • Flexibility – variable depending on what type of account you choose (e.g. easy access, fixed rate or regular saver)
  • Interest – you can invest up to £3600 per year in a cash ISA and the interest earned is tax free

Interest rates: shop around

Once you have chosen the type of account you want to open, it’s best to shop around for the best interest rates you can find. Also remember to check your accounts regularly to make sure you’re still getting the best deal.

Read the small print

Check the details and watch out for the tricks banks play to lure you in or avoid paying you interest such as:

• Introductory rates – those great sounding deals that get you signing on the dotted line, but fade into memory a year later leaving you with a rubbish interest rate

• Withdrawal penalties – with some savings accounts, you may be charged a penalty or lose interest if you make unauthorised withdrawals

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