Whether you should open a savings account or an ISA depends on your needs and savings goals. ISAs tend to be popular for longer-term savings, while other savings accounts may be used for short-term savings. You’ll typically be able to earn more competitive interest rates on a traditional savings account, and as most savers don’t reach the threshold for paying tax on earned interest, this could be a good option. If flexibility is important for you, some savings accounts also let you easily make withdrawals and top up your funds.
It doesn’t have to be an “either-or” decision. For instance, if you plan on saving over £20,000 per year, you could save up to this amount in an ISA and anything over it in a savings account. Alternatively, you could simply deposit your money into one savings account.
Comparing savings accounts at Raisin UK
Although we don’t currently offer ISAs at Raisin UK, you can compare and open other types of savings accounts from our partner banks and building societies through our marketplace.
