Anonymous #1
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Hi, I don’t really know anything about how things work but if I open a savings account will they take interest? Are there any that don’t? I want to save up and pay for my parent’s expenses in the future. I just need to find a legitimate free savings bank account to deposit everything into. Thanks
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WantBeAnonymous
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All bank accounts have interest but how much you get depends on the bank and the interest rates set by the gov.
Currently my savings account is 0.01% which is pathetic. But it used to be much higher

Also I’m 99% sure that if you open a savings account with a high street back eg tsb, Halifax etc, it will always be free
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Anonymous #1
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(Original post by WantBeAnonymous)
All bank accounts have interest but how much you get depends on the bank and the interest rates set by the gov.
Currently my savings account is 0.01% which is pathetic. But it used to be much higher

Also I’m 99% sure that if you open a savings account with a high street back eg tsb, Halifax etc, it will always be free
Thanks for this!! But I don’t know what you mean by yours currently being 0.01% pathetic? And to clarify, if I open a high street bank they won’t charge me interest or opening bank account fee?
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WantBeAnonymous
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Opening the account is free.
Interest is where they give you money. (You would only be asked to pay them if it was a loan of some kind, which this is not)
So the 0.01% means that I get given that percentage of the total amount in that account per month (some may be per year)
Last edited by WantBeAnonymous; 1 month ago
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Anonymous #1
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(Original post by WantBeAnonymous)
Opening the account is free.
Interest is where they give you money. (You would only be asked to pay them if it was a loan of some kind, which this is not)
So the 0.01% means that I get given that percentage of the total amount in that account per month (some may be per year)
Ohhh I see, this helped a lot thank you!!
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martin7
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(Original post by WantBeAnonymous)
Opening the account is free.
Interest is where they give you money. (You would only be asked to pay them if it was a loan of some kind, which this is not)
So the 0.01% means that I get given that percentage of the total amount in that account per month (some may be per year)
Bank interest rates are always quoted as "AER" (Annual Equivalent Rate), so that's what you need to be looking at -- you shouldn't ever see a monthly interest rate quoted in isolation. So, for example, if you have an account paying 0.01% AER, it means that a deposit of £1000 would earn 10p interest per year.

If the Bank of England base rate drops below zero, it's possible that some banks might start charging customers for holding large amounts of cash on deposit -- but I'd only expect that to apply to people/businesses with very large balances (for example, over £100,000).
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