Savings accounts are a familiar concept to most people: you put your money into an account, at a specified interest rate, and leave it there until you need it. The longer you leave your money in the account, the more interest you receive.

There are a wide range of savings options available. For example, you might earn  a higher interest rate if you're prepared to tie your money up for a certain length of time. Or, you might earn more interest if you choose an online-only account or commit to paying in a fixed amount every month.

This is the most basic type of savings account, and it gives you easy access to your money, whenever you want it. You can pay in as much or as little as you want, whenever it suits you. You can also take your money out at any time without losing any interest. Plus, you can manage this type of account in a branch of your bank, over the phone or with secure online banking.

However, the flexibility of these types of accounts is offset by the lower interest rates they typically offer. Make sure you check the rate you're getting every few months and think about switching if you find a better rate elsewhere.

If you know you’ll need instant access to your money, having your savings account and current account with the same bank makes the most sense. This way, you can usually transfer money right away, especially if you're using online banking.

If you want to know that the interest rate you'll be getting is fixed, you might want to consider a fixed term savings account. This type of account usually gives you a much higher rate of interest than an instant access savings account. Also, with a fixed term savings account, you'll receive interest on your money at a rate that won't change for the term of your deposit.

Do bear in mind that your money will be tied up for a fixed amount of time, generally between six months and three years. And you may not be able to take any money out or pay any extra in during this period.

Still, if you're saving up for something major (like a car, your children's education or even a deposit for a house) and you have a chunk of money you don't need right now, then this could be the perfect solution for you. Tuck your money away in one of these accounts for a couple of years earn interest in the meantime, and your money will be waiting for you when you're ready to use it.

With this type of account you'll need to make regular monthly payments to get a fixed rate of interest for a set amount of time (generally a year.) The rate is usually quite competitive and you'll receive all your interest in one lump sum at the end of the year. Some accounts may let you take money out but you may not be able to replace it if you do.

This type of account is a good way of getting into the savings habit as you can set up a standing order so the money leaves your account right after payday. That way, you won’t have to remember to do anything, and you’ll barely notice it’s gone.

If you're a UK taxpayer, you may want to think about opening an ISA. As a way of encouraging more people to save, the Government introduced ISAs and made any interest they earned or any return on a person's investment tax-free.

There are two types of ISA: Cash ISAs and Investment ISAs. Each tax year, an allowance is set for the total amount you can save with each type tax free. It’s in your interest to make the most of the allowance.  Otherwise, you'll lose it and you won't be able to carry it over to the following year.

You can save up to £5,640 this tax year in a cash ISA.

Be aware that once you’ve deposited the maximum amount allowed into your ISA, you can’t add any more even if you take money out. So you should consider having other savings available if you think you'll be saving the maximum during the tax year.

When comparing interest rates on ISAs and other savings accounts, remember that you won't pay tax on the interest earned on an ISA.