A convenient way to pay regular bills is by direct debit or standing order, which takes care of your payments without you having to think about it.

Standing Order or Direct Debit? These are simple methods of moving your money on a frequent basis to ensure that you always have money in your account when you need it. By setting up a Standing Order you give us permission to access your account for a specific amount and transfer that amount to a third party, e.g. a utility company, at a specific time.

With a Direct Debit you give us permission to access your account to be debited, but amounts can vary.

Paying regular amounts into a savings account is a great way to discipline yourself to save money. For example saving for a holiday is easy if you put a little aside each month, and avoids those hefty credit card bills spoiling your holiday on your return!

Depending on the account you choose, you may be able to make regular payments by direct debit or standing order although not all accounts provide these facilities.

It is a good idea to have an account which is easily accessed to cover the unexpected. A small saving each month will soon add up, and give you peace of mind that if you suddenly need that extra cash, it is available.

Some accounts only pay interest annually while others offer a monthly/annual option. As part of the process of deciding which would be the most convenient account for you, make sure you compare interest rates, including the Interest rates offered by us.

You may get the best return on your savings if you can afford to put your money away for several years, into an account where access is limited. If you are going to need access to your savings sooner then you may need an account which does not penalise you for withdrawing funds.

In choosing an account for a lump sum you will need to consider, for example, the minimum deposit requirements, whether you can add to your initial lump sum and if there is a "maturity" date.

When choosing an account for regular payments, look out for any restrictions or limits. If you choose the tax advantages of an ISA, make sure that you don't exceed the maximum amount for that tax year, to avoid being taxed on your interest.

Higher risk investments	These are generally "equity" based investments, i.e. those based on investing directly on the stock market, although there is a wide variety of high risk investments. Examples are shares in particular companies, Unit Trusts or equity based ISAs. The potential returns are higher over the long term but so are the risks in that the value of your savings could go down as well as up. If you are interested in high risk investments, make sure you get sound financial advice first. We can arrange an interview with a Legal & General financial consultant, which can be held at one of our branches or in your own home.
Low risk savings	A Building Society account offers a great risk-free way of saving. If you do not need regular access to your money or can leave your money untouched for a longer period, you may get higher rates of interest.
Monthly income	You can generally get an investment that pays a regular income whatever type of savings you select. With this option, the interest your savings earn is paid into an account of your choice, generally monthly.

 

Depending on your circumstances, you could consider an offshore account. Interest on Yorkshire Guernsey accounts is paid gross if you are a non-EU resident. If you are an EU resident it is paid either gross or net depending on your tax status following the introduction of the European Savings Tax Directive, as it applies in Guernsey.

This means that a retention tax will be deducted from interest payments unless you elect to have interest paid gross. If you elect for gross payment, Yorkshire Guernsey is obliged to report your details and your interest payments to the Guernsey tax authorities. Relevant information will also be passed to the tax authorities in the EU Member State in which you reside.

The Directive also affects individuals that hold a joint account with a resident of an EU Member State. In this case, Yorkshire Guernsey will deduct the retention tax from interest payments on a pro rata basis unless the other party to the account elects to have their share of the interest paid gross.

For more information about offshore accounts, visit the Yorkshire Guernsey website. Yorkshire Guernsey is a wholly owned subsidiary of the Yorkshire Building Society.

For more information about the Directive, please visit www.guernseyfinance.com (Opens in a new window).

There are a number of financial sites offering free information. This is money is a good place to start.

• e-ISA is a tax-free, online, Cash ISA. From checking your balance to tracking interest returns, you're in complete control 24 hours a day.
• Fixed Rate Anniversary ISA is a Cash ISA offering a fixed rate of interest over a fixed term, tax-free.
• ISA Plus is a Cash ISA offering an attractive rate of interest on your savings. You can make either a cash lump sum investment or regular cash payments into ISA Plus.
• Monthly Reward ISA is a cash ISA offering an attractive interest rate as long as you only make withdrawals in December of each year.

If you are still undecided on which account may be best for you, try our Decision tree.

An ISA provides a tax efficient means of saving but there are limits on the amount you can invest in each tax year.

There are two main types of ISA, a Cash ISA and a Stocks and Shares ISA.

You can take out one Cash ISA in any tax year, which runs from 6th April to 5th April the following year. Check our ISAs explained section for more details including investment limits.

If your annual income is less than your personal tax allowance, you may be able to register to have any interest on your savings paid gross, i.e. without tax deducted. The best place to check whether you are eligible to have interest paid gross is the HM Revenue & Customs web site.

If you are eligible, complete an R85 form and let your savings provider have it. They will do the rest. If you are one of our customers contact us for a form.

A great way to help children to learn more about saving and managing their own money is for them to have their own account. We have created a savings account especially for children. Our One Day account is open to all young people under the age of 21, can be opened with as little as £10. If the child is 7 or under, a parent or guardian is required to act as trustee, operating the account for the child.

Alternatively, you could consider a Child Trust Fund, the Government savings initiative for children born on or after 1st September 2002.

Available for 12 to 20 year olds, our new Freedom account is the ideal way to introduce a child to the art of money management. It is a branch-based regular savings account that comes with a LINK cash card, so it's easy to withdraw money independently when needed.

Like everyone else your child has a personal tax allowance, and if his or her income each year does not exceed this allowance he/she may be eligible for interest to be paid without tax deducted on his or her savings account. You will need to tell us if your child is a non taxpayer by completing an R85 form, which you can get from one of our branches when you open an account. Details of eligibility and allowances can be found on the HM Revenue & Customs website.

If your child does not pay tax, it is important to compare the gross rates of interest available (i.e. before tax is deducted) as opposed to net before choosing an account.

Child Trust Fund accounts are automatically tax-free so you won't need to complete an R85 form for this account.