If you can afford to put a bit of money aside every so often, a savings account is a great way to make it go further – you’ll earn more generous rates of interest on it than if you had just left it to rest in your current account. However, the many different types of savings account can be confusing, with different providers offering multiple ways to save your money. Below we’ll explain some of the most common types of savings account so you can decide which is the best fit for you.

Notice accounts

These accounts require you to inform the bank (“give notice”) whenever you want to withdraw money – usually in increments of 30 days, although some providers operate shorter notice periods. If you need the money before the time allotted by the notice period, you should still be able to access it, but you will incur a penalty. Interest rates are usually variable, which means they may be adjusted by the bank over time.

Easy access accounts

Easy access accounts work in a similar way to current accounts – you can withdraw cash whenever you want it, without the need to give notice. They typically offer a less generous rate of interest than other types of accounts, but you won’t incur penalties for withdrawing too much or too often.

Regular saver accounts

These are a great option for people who are saving up for a particular purpose: for instance, a deposit on a house or a new car. You will be required to deposit a minimum amount of money every month, but the benefit is that they usually come with a fixed interest rate that’s better than what you would get with other types of account.

Fixed-rate bonds

Fixed-rate bonds are a type of savings account that, as the name suggests, offer a generous fixed rate of interest on your cash deposits. However, you will be unable to access the money at all until the term of the bond is up. They’re a great way to grow your money when interest rates are falling.

Individual savings accounts

Individual savings accounts, or Isas, are a way of saving money tax-free. Everybody can save up to £11,280 in Isas per year – half in cash Isas and the other half in stocks and shares Isas. Put simply, they’re an extremely efficient way to save money and work in a similar way to any other savings account – this means they might be easy access, notice, fixed rate et cetera. Find out more information at the Leeds Building Society Isa page.

So many of us stay with the same account for years, often being subjected to fees, charges and low interest, without realising there is anything we can do about it. There is   switching bank account is virtually hassle-free and can help save hundreds, possibly even thousands of pounds.

Why switch?

You may think that most bank accounts are quite similar, however this is far from the truth. In fact, a lot of the main banks pay a tiny proportion of the interest that other, lesser known banks pay. Some banks charge extortionate monthly fees for the use of their services, some have poor customer service and others have high fees and overdraft charges. If you feel that you are losing money, it could be a good time to switch your current account. You should be aware, though, that if you are applying for a mortgage or loan, a lender might look for financial stability and in this case being a loyal customer is a good thing. However if your credit score is good, this should not be a problem.

Which account should you choose?

There are different accounts available for different needs. For example, if you are often overdrawn, look for an account which offers good deals on overdrafts. If you have a bit more money in your account, look for one which has a good interest rate. There are also accounts which do not charge for withdrawing money overseas. Whatever your needs, it is likely that there will be an account out there for you. Shop around and compare quotes and don’t be afraid to switch accounts more than once if you are no longer getting the best deal.

It’s easier than you think

Many people are put off switching their current account to a new provider because they believe that that the process is too complicated. While banks used to make it difficult for customers to switch, they are now required by law to cooperate with each other. On your side, all you need to do is give the new bank your details and some ID   most require one form of photographic identification and a proof of address. You will also need to fill out an application and a transfer form, to request to move your money, standing orders and direct debits to the new account. All this can be completed online, in the comfort of your own home, or in the closest branch of your chosen bank. If you complete the application online, you will need to send off your ID, however after that the bank will take care of everything for you.

What happens next?

Once your new account has been opened, the bank is responsible for transferring your standing orders and direct debits so this should be done automatically without you needing to inform anyone. However, there are occasionally delays to this process so it can be a good idea to keep enough money in your old account to cover bills until you are sure everything has gone through. Regarding your employer, it is usually your responsibility to inform them that your wages should be paid into a new account, so check whether you need to do this with both banks when you make the switch.

Lloyd is a freelance business and personal finance blogger, he is currently working on behalf of SO Switch – visit them if you’re considering changing your online current account.

If you are like me, you are probably enjoying the benefits of growing a garden this time of year. The joys of growing a garden are vast, but the benefits are oftentimes overplayed. Saving money with gardening is not as easy as it sounds. Most likely, you will not save any money growing a garden. Does a garden have the potential to save you money in the long-term? Of course, but the typical garden setup is often very inefficient.

Imagine with me, that you want to grow a large quantity of tomatoes. Let’s imagine 20 tomato plants in a 10 by 10 plot. So what kind of costs should you consider for your tomato garden?

First off, you need the seeds or plants themselves to start growing your tomato garden, a cost that varies tremendously based on type of tomato (heirloom for instances) and age (seeds or small plants). You might have to rent or buy a tiller to till your soil. You may need some soil amendments (peet moss, top soil, etc. ). Odds are you will need to protect your investment from fuzzy adorable critters with some sort of wire fencing. Speaking of wire fencing you will most likely need wire fencing posts and wire tomato stilts.  You might need some hoses or hose attachments (I love drip hoses).  Last but definitely not least, you will need water for your plants.

What is the total investment for this tomato plot? About $100 up front and probably about $5 a month in water during the hot months. The math is as follows:

• Tiller (Rental, 4hrs) – $40
• Soil Amendments – $20
• Fencing and Posts – $35
• Seeds – $1
• Hose and Attachments – $10
• Watering – $5 a month

This is a very conservative estimate for growing your tomato garden, but it is easy to see that most likely you are not going to cut out $100 of your food budget with this tomato plot.

You can collect your own water and use a composter to drastically mitigate the costs, but rain collectors and composters are an added upfront cost as well. If you start talking about raised bed gardens, the cost is even worse.

Now of course there are more effective ways of getting your garden to pay out, but the long and short is that most people do not garden with cost in mind. Gardening is peaceful and enjoyable and that is the payoff for most individuals. Individuals who will spend countless unpaid hours tending to large gardens, breaking even or slightly ahead at best.

Best ways to make growing a garden more cost effective.

• Economy of Scales – Larger crops usually reduce overhead
• Composter -  You need to amend your soil with nutrients that are cost effective
• Grow from seeds
• Have land with good soil
• Have a free water source
• Variety of Plants can reduce your food budget. Having just tomatoes might take a chunk of your tomato budget, but why not grow some garlic and onions while you are at it?
• Selling your garden, but be warned that permits are most likely needed.

Are you the type of person who constantly strives toward becoming the next millionaire? You might think that with a frugal lifestyle and proper investing, you will obtain the status of self made millionaire excluding your retirement benefits. Sadly the truth might be, that if you are not making a lot of money, your odds of becoming an inflation adjusted millionaire aren’t very good.

An example would be an individual making $50,000 a year will probably have approximately 25% (or more) of their money going to health care and taxes, bringing their monthly take home to roughly $3,100. Depending on where you live and your lifestyle, there is a good chance that you will likely have at least a base level of expenses of roughly $1250 – $1750 (rent, food, phone, utilities, clothing, and etc.) Now of course there are exceptions to this such as living rent free with a relative, but in most scenarios, about half of your take home pay evaporates every month. If this person was a financial martyr and didn’t buy anything, take any vacations, drove an old car, etc., its reasonable to think they could scrap up $1,500 every single month.

Assuming 6.215% yearly growth, how much do you think this $1,500 a month would be in 10 years? If you said a million dollars, you are wrong. It’s a quarter of a million dollars unadjusted to inflation. Assuming 2.5% inflation, it’s only $195,299.  If you continue to save $1,500 a month for the next 20 years (30 years total), you would now have $1,706,600 unadjusted for inflation, but let’s not forget capital gains taxes. If taxes remain constant, you are looking at paying about $175,000 (or more) in taxes. After taxes and again assuming 2.5% inflation, this amount would only equal $730,183 after inflation.

Even though this individual saved $1,500 a month for 360 months, they would still not have an inflation adjusted million dollars in thirty years. Imagine where you are 30 years from now. It is possible that your income has increased, but most likely your responsibilities have as well (kids, housing, etc.). Can you imagine saving $1,500 a month on a $50,000 income? I make more than $50,000 a year and I only save approximately $400 a month.

So what is the point of this article? To offer perspective on becoming a millionaire by just being frugal. Most likely most people with careers will become millionaires when including retirement accounts, pensions, social security, etc., but the idea of becoming a self made millionaire by only living frugally might not be the best approach. The best way to become a millionaire is a combination of living frugal and increasing ones income whether that be through a promotion, side business, or a spouse working.