Guide to savings accounts

4. Opening a savings account

This section explains what you will need to open your savings account.

Identification and proof of address

The British Bankers’ Association (BBA) says that before a bank can give you any kind of bank account, they “need to be confident that you are who you say you are and you live where you say you live”.

Banks do this to prevent people opening accounts in someone else’s name and to prevent money laundering.

When you go to open your savings account, make sure you have this information to hand. Each bank is different and in some circumstances they may ask for more than two pieces of I.D. (especially when you open accounts over the internet or the telephone).

Although banks differ, they universally accept photo I.D. as proof of identity (such as a valid Passport or driving licence, or if you are from outside the UK, a National identity card) and recent utility bills as proof of address.

However, because banks’ requirements vary, the best approach is to have as much information as possible to hand when you go to open your savings account. Make sure you have the original copies because banks do not normally accept copies.

Deposit

Banks and building societies have a set amount that they expect you to deposit (put into the account) before they will open a savings account for you. This amount can range from £1 to £10,000s and varies between the different providers and the types of savings account.

When you are comparing savings accounts, look at the deposit required and consider if you have the money required to open the account before applying.

If you do have the money, bear in mind when and how you will be able to access it again. If you think it is a large sum of money that you may need in the near future, consider an account with a lower deposit requirement or an account with instant access.

With some accounts you must deposit money frequently. These are called ‘regular saver’ accounts and have the stipulation that you must deposit a minimum amount each month in order to qualify for a higher interest rate.

 

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• Next page: Adding money to a savings account
• Previous page: Tax and UK savings accounts
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Guide contents

1. What is a savings account?
2. Savings accounts and interest rates
3. Tax and UK savings accounts
4. Opening a savings account
5. Adding money to a savings account
6. Accessing money in a savings account
7. Regular savings accounts
8. Instant access savings accounts
9. Online savers
10. Individual savings accounts (ISAs)
11. Helpful links for further savings information

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