What is a deposit account? Watch

coolworld37
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#1
Report Thread starter 12 years ago
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My dad was saying get a deposit account but I dont have a clue what he was on about.. Anyone here help
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jinglepupskye
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Report 12 years ago
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It's a bank account which pays you interest on the money you have in the account. Generally it is for savings rather than day to day spending for which you would use a current account.

You usually can't pay direct debits and standing orders for bills from a deposit account and there are usually some kind of restrictions on when you can take money out of the account. Some might want you to give 30 days notice before making a withdrawal or you lose interest.

If you want to deposit a sum of money which you will not be using for a while then a deposit account is best.

If you want to use the account for day to day life you need a current account.

You can have both if you want!
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coolworld37
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Thanks
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Fusion
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Report 12 years ago
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I would recommend an ISA if you want to stash some savings away, standard savings accounts offer interest in the range of 2.5-4%. An ISA from alliance and leicester offers 5.2% TAX FREE. The limit is 3000 per tax year and also its not the most flexible for access to your money. But soundest option around.
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