What are your daily needs?

• Regular bill payments, e.g. gas, electricity, telephone, insurance?
• Occasional payments, e.g. memberships, holidays?
• Having some "emergency" money available?
• Having an ATM card to withdraw money from LINK machines?

Before choosing a savings account you will need to decide what facilities you want from a savings account. For example, will you need ATM access, or facilities for regular payments to third parties? As a general rule, the less access you require to your money, and the longer you can save, the better the interest rate. Try our Decision tree to help you choose the right Yorkshire account

Things to consider

1. Bill Payments

   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.

2. Regular deposits

   Paying regular amounts by direct debit or standing order 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!

3. Unexpected emergencies

   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.

4. Receiving interest

   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.

Decision tree

Saving for the future

• Capital growth for future security - longer term savings with interest added to build up your savings?
  OR
  
• An income from your savings - interest paid regularly for you to use?

Having decided your aims, there are a number of things to consider when choosing a savings account. Our Decision tree may help.

More information

1. Can you save over several years or do you need access to your money?

   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.

2. Do you want to deposit a lump sum or to save on a regular basis?

   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.

3. Are you prepared to take a risk for a potentially higher return?

   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 Adviser, 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.

4. Offshore Accounts

   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)

5. Online Research

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

Decision tree

Saving for your child's future

Starting early gives you the opportunity to save money in a high interest account, where it will earn a better rate of interest over a longer period of time. Building Society savings accounts are one option. You could consider one of the following alternatives:

• Treasure Bond
  If you have a lump sum to deposit into an account, then our Treasure Bond could be right for you.
  
  
• Child Trust Fund
  The Government savings initiative for children born on or after 1st September 2002.

Things to consider

1. Starting your child's first savings account

   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.

    

2. Giving your child the Freedom to manage their own money

   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.

3. Tax benefits

   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.

Decision tree

Tax-free savings

There are obvious advantages to saving your money in an account where you are not paying tax on the interest earned. Tax on savings interest is normally deducted at 20% for basic rate tax payers. If you are a higher rate taxpayer you'll have to pay the extra tax through your tax return and subsequent tax coding. If you live in the UK, there are a number of ways in which you can save without paying tax on any interest earned. We offer two options:

• Take out a Cash Individual Savings Account (ISA) .
• Register to have any interest on a savings account paid gross, i.e. without tax deducted.

More information

1. ISA products available
   • 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.

2. About ISAs

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

3. Where do I start?

   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.

4. Interest paid gross

   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.

Decision tree

ISAs Explained

An ISA is a special type of account within which every eligible adult can save and invest tax-efficiently each tax year.

From 6th April 2010 the investment limits have increased to £10,200 (£5,100 in a Cash ISA).

You will benefit from tax-free interest if you choose a Cash ISA. Although Stocks and Shares ISAs are tax-efficient, they are not completely tax free.

The information below is based on current legislation.

1. Investment limits

   Investment limits (from 6 April 2010)	Cash	Stocks & Shares
   Amount you can invest	Up to £5,100 with one provider	Up to £10,200 with the same or another provider
   Minimum opening age	16	18

2. Investment examples

   	Example 1	Example 2	Example 3
   Start of tax year (from 6 April)	You can save £5,100 in a Cash ISA	You save £2,100 in a Cash ISA	Set up £750 monthly Direct Debit into a Stocks and Shares ISA = £9,000 invested over the tax year
   During the same tax year	You can invest £5,100 in a Stocks and Shares ISA	You can save another £3,000 in the same Cash ISA plus you can invest £5,100 in a Stocks and Shares ISA with another provider	You can save £1,200 into a Cash ISA with another provider
   Total Invested	£10,200	£10,200	£10,200

3. Eligibility for ISA accounts

   To qualify for one of our Cash ISAs, you must be aged 16 and both resident and ordinarily resident for tax purposes or be a qualifying Crown employee or married to, or in a civil partnership with, a qualified crown employee.

4. Your right to cancel ISA accounts

   If you open an ISA and then change your mind within 14 days, you may cancel your subscription and we will give you your money back with any interest it has earned. We will not apply any notice period or charge. You can then open another ISA in the same tax year if you wish.

   Should you wish to cancel your subscription within this period, please write to the branch or agency where you opened your account or call 0845 1200 300

Types of ISA

1. Yorkshire Building Society Cash ISAs

   Our Cash ISAs are designed for money that you may wish to access in the short or medium term to suit different needs.

   And don't forget that once you've invested up to your maximum allowance for the tax year, we have other savings options for your short and longer-term savings goals.

2. Stocks and Shares ISAs

   These types of ISAs are best suited to money you can leave untouched for at least five years or more. Stocks and Shares ISAs are available through our association with Legal & General. To discuss your needs with a Legal & General consultant, book an appointment online now or contact your local branch.

3. Stakeholder Standards

   These are guidelines set by the Government to make it easier for you to identify simple, low-cost savings products.

   For example, for a Cash ISA, Stakeholder Standards mean:

   • There are no account charges
   • The minimum investment is not more that £10
   • Withdrawals can be made in 7 working days or less and there is no limit on the number of withdrawals.
   • They provide a variable interest rate guaranteed to be no lower that 1% below the Bank of England base rate.

   None of the ISA's the Society provides or the ISA available through the Protected Capital Account offered in association with Credit Suisse International currently meets the Stakeholder Standards. However, a Stakeholder Standard ISA may not necessarily be more suitable than a non-stakeholder standard ISA. It simply shows that the product meets all of the Government's criteria. Please contact us if you are unsure which ISA is right for you.

Transferring ISA allowances

You can transfer some or all of your money saved in Cash ISAs in previous tax years into a Cash ISA and/or Stocks and Shares ISA without affecting your annual ISA allowance.

You can also transfer money saved in a Cash ISA for the current tax year into different ISAs with the same or a different provider, although you can only hold one of each type of ISA for each tax year.

If you choose to transfer your Cash ISA for the current tax year into a Stocks and Shares ISA, you must transfer the whole amount saved in that tax year. You can then save up to the remaining balance of your ISA allowance in the same Stocks and Shares ISA, or you could open a new Cash ISA.