“The UK savings landscape can feel like alphabet soup. ISAs, AER, fixed terms... it’s a lot. But we’re going to unpack it.”
A lot of members told us they’ve already started saving but still feel unsure whether they’re doing the right thing with their money.
So, in our latest live webinar, we broke it all down:
- The types of savings accounts,
- What the fine print really means
- How to match your goal to the right product.
Here’s a short recap, in plain English.
What kind of saver are you?
Some people save for next month. Some save for five years from now. Some like to check their account every day. Others just want to “set and forget.”
Here are a few common types:
- Little-and-Often Saver Chips in small amounts regularly, likes flexibility.
- Lock It and Leave It Saver Prefers to stash money and not touch it.
- Goal Getter Saving for something specific — like a house, trip, or big purchase.
- SMART Planner Loves a clear plan and deadline.
Types of Savings Accounts (and When to Use Them)
Account Type | Good For | Key Detail |
Cash ISA | Simple, tax-free saving | You get to keep all your interest. No tax. Up to £20,000/year. |
Junior Cash ISA | Locking away savings for kids | Keep all the interest with no tax on up to £8,000 a year. |
Notice Account | Better rates if you don’t need quick access | You’ll need to give 30 or 60 days’ notice before taking your money out. |
Fixed-Term Account | Locking money away at a better rate | Terms like 6, 12, or 24 months. You can’t withdraw early. |
Prize Account | A fun savings option with monthly prize draws | Instead of interest, you get entries to win cash prizes. |
👉 Some members use more than one of these. That’s normal (and smart).
Still confused by the small print? 🤔
Here’s what the jargon actually means
Term | What It Really Means |
AER | The interest rate you’d earn in a year. Compares apples to apples. |
AIR | “Annual Interest Rate” — similar to AER, just worded differently. |
Dividend | A slice of credit union profits, shared with members. |
Fixed | The rate won’t change during the term. |
Variable | The rate can go up or down. (Banks often don’t shout when it drops.) |
Match Your Goal to the Right Account (Using the SMART Trick) ✍️
We walked through this exercise live but you can grab a pen and do it now for your next savings goal.
Write down the letters S.M.A.R.T. and answer each question!
S = Specific What are you saving for? “A birthday weekend away.”
M = Measurable How much will it cost? “£450 for travel, hotel, and food.”
A = Achievable Can you afford the monthly savings? “Yes, if I skip a few takeaways.”
R = Relevant How important is this to you? “7/10 – nice, but not urgent.”
T = Time-bound When do you need the money? “10 months → £450 ÷ 10 = £45/month”
Now look at your goal and ask:
- Do I need access to the money anytime?
- Would I rather it be locked away, so I’m not tempted?
- Do I want a chance to win money (Prize Saver)?
- Or just steady, safe interest?
The big takeaway? 💬
It helps to know all the jargon and match your savings style and goal to the right kind of account.
And we’re here to help.
Next Steps 📍
- Want to read more about Plane Savers accounts? 👉 See our welcome pack
- Ready to open a new account? 👉 Log in and explore other account types in the app
The right savings account doesn’t just hold your money, it helps you grow it, without all the stress.