Brief History of Banking and Saving Accounts
The history of banking and saving accounts in the UK can be traced back to Roman conquest of Britain in AD 43. The effects of banking introduced by the Romans can still be seen in Britain today and around the world. Modern banking is said to have developed in importance when the goldsmith bankers came to light after King Charles I apprehended the gold deposits in the Tower of London during the English Civil War. At the time this was considered to be a safe place for the landed gentry and the aristocracy of the day to place their valuables, gold and money for safe keeping.
In the late 18th and early 19th Century there were no facilities for poor people to save their money as the banks were not interested in accepting small deposits from thousands of investors as they were only interested in large deposits from the rich.
Saving Banks as they were known offered saving accounts, they had evolved during the financial decline and poverty of the 1800’s. The customers who used the saving accounts offered by the saving banks were considered to be some of the poorest people in society. These saving accounts at the time were used as they provided a safe-place to keep money and customers who were rewarded with a good rate of interest for leaving their money in the banks.
These banks were founded by philanthropist whose original motivation for setting these saving banks up was a fervent belief in thrift and self-help. Although their philanthropic motivation had been for the love of humanity and mankind they very quickly discovered that offering saving accounts made sound economic sense. By persuading and encouraging people to save their money actually helped these savers to improve their quality of life.
Saving Accounts Are Now More Confusing and Complex
Today’s saving accounts have come a long way since their humble beginnings in the late 18th century. Our banks and building societies now have saving accounts with more than £1 trillion on deposit and the banks are no longer run by philanthropist but as full pledged businesses that make large profits.
Banks and building societies offer a plethora of different types of savings accounts from children’s saving accounts to monthly saving accounts and saving accounts designed for growth to saving accounts designed for monthly income. There are many different features offered by saving accounts and this has made it hard for savers to compare like with like when considering which type of saving accounts to apply for.
To further exasperate your selection of which saving accounts might be suitable for you. You discover that there are different conditions that apply to the way you can operate one type of saving accounts from another. Some saving accounts can only be used on the internet and others that you can only access at your banks high street branch. Then you have saving accounts that offer fixed interest rates and others that offer variable interest rates; some saving accounts allow instant access to your money and others require access to your money through a fixed notice period. And if all that was not confusing enough then you discover that most saving accounts have minimum and maximum balances allowed in the saving accounts and some have limited and unlimited withdrawals amounts allowed for taking your money out of your savings accounts.
The Pethora Of Different Types Of Saving Accounts
And just when you thought you understood it all the banks and building societies have names for their saving accounts like, Cash ISA Saver, Two year fixed rate cash ISA , Three and four year fixed rate cash ISA, eSaving accounts, Monthly savers, Advantage Saver, Term Deposits, Easy Saver, Tracker Bond, Junior Cash ISA, Young Saver, Child Trust Fund , etc.
Don’t be put off by a long list of different saving accounts with all their different criteria requirements. Ask for a brochure or go directly to their websites and use their comparison selectors to find the best savings accounts available at the moment.
If you have had a daunting time finding the right saving accounts for your money then why not share your experiences below.