What is savings interest?
-Savings interest is money that you earn on savings. The amount of interest you earn is determined by the rates set by your provider.
Do I have to pay tax on interest I earn from savings accounts?
+Depending on your circumstances and the type of savings account you have, you may have to pay tax on any interest you earn. This is because interest on savings is classed as earnings. There are some types of savings accounts that allow you to earn interest without paying tax on it (such as ISAs), but there are restrictions on how much you can save in these accounts each year. Before opening an account, it is a good idea to understand the terms and conditions, and any restrictions associated with the savings account.
What is different about a bonus rate savings account?
+Bonus rate savings accounts are designed to encourage (and reward) savers who don’t dip into their savings. If you don’t make withdrawals, you receive a bonus interest rate, meaning that you will earn more interest on your balance.
Can I take money out at any time?
+This depends on the savings account. Most instant access savings accounts are just that - instant access. But there are some accounts that require days, weeks or even months notice, and some will impose a penalty that can be the equivalent of several months interest, depending on your savings balance. Before you open a savings account, make sure you think about how often you may need to dip into your savings, and understand the account provider’s policies to prevent a costly mistake.
What if I need to talk to someone?
+Most mobile bank accounts have a phone number, email address, or live chat to make it easy for you to speak to someone.
Should I switch my bank account for an online bank account?
+This is dependent on your individual circumstances, and what you want to use the account for. It is essential to understand what your chosen online bank account offers and check it suits your needs.
A traditional bank may offer products and services that are not available with a mobile bank, such as credit cards, mortgages, savings accounts, and personal loans.
Also, all banks in the UK will allow you to access your account online or via a mobile app. So if you are looking for online convenience, this may already be available to you with your current bank account provider.
Are prepaid card accounts also mobile bank accounts?
+Not always, the two terms can be used interchangeably; many online bank accounts and prepaid card accounts are classed as e-money. E-money is money stored in an electronic form that can be used to make payments. You can get prepaid cards with sort code and account numbers; most will function similarly to a basic account. E-Money is not protected by the Financial Services Compensation Scheme (FSCS) as most typical high street bank accounts are - see "Are prepaid cards protected by Section 75 of the Consumer Credit Act?