How Do I Open a Savings Account?

A piggy bank with piles of coins next to it in increasing size

Opening a savings account is a simple way to take control of your finances and plan for the future. Whether you're saving for a holiday, helping a grandchild or building an emergency fund, our guide includes everything you need to know.

Why should you open a savings account?

A savings account helps you put money to one side, separate from your everyday spending. This makes it easier to save over time and avoid dipping into your savings for daily expenses. You can use it to work toward specific goals – like a holiday or a new car – or to build an emergency fund for unexpected costs.

Savings accounts also earn interest, which is money the bank pays you for keeping your savings with them. The interest rate is usually agreed when you open the account. You can learn more about how interest works in our guide.

Without a savings account, all your money might stay in your current account, making it easier to spend without thinking. A savings account provides a more structured way to manage your money and build financial security.

Step-by-step guide to opening a savings account

Thinking about opening a savings account? Here’s a simple four-step guide to help you get started.

1. Choose the type of savings account

The first thing you need to do is choose the type of savings account you want. This decision is usually based on your savings objectives.

At Saga, we offer:

Easy-access savings account. These let you take out your money whenever you need it. The interest rate can change, and you can save up to £250,000 with Saga.
Stocks and shares ISA. These are investment accounts and allow you to invest in things like, stocks, shares, bonds and equities, as a way to try to grow your money. With the Saga Stocks & Shares ISA, we offer 3 ready-made portolfios to help make investing as simple as possible. As your money is invested, the value of your investments can rise and fall, so you could get back less than you invest. Tax rules can change and the value of any tax benefits depends on your personal circumstances.

2. Gather what you need to open a savings account

Once you’ve picked the type of savings account you want, you'll likely need a few things to get started:

Your personal details. This includes your full name, date of birth, contact information and sometimes your National Insurance number.
Photo ID. You’ll need to prove who you are. A passport, driver’s licence or other government-issued photo ID will work.
Proof of address. This could be a recent bank statement, utility bill, council tax bill, mortgage statement, tenancy agreement or a letter from the government. It usually needs to be dated within the last 3 to 6 months.
National Insurance number and UK bank account details. You may be required to provide these when opening an ISA.

3. Open the account and deposit funds

Once your identity is confirmed, you can open your savings account and start adding money.

Most accounts need a minimum deposit to get started. The amount depends on the type of account.

You can add money by bank transfer. Just move funds from another account using online banking, a mobile app or by phone. Some banks and building societies also let you deposit cash or cheques in a branch. However, this isn’t an option with Saga.

4. Manage your account

Now that your savings account is open, you can start building your savings. Here are some tips to help you manage it well:

Set goals. Decide what you're saving for. It helps to have both short-term goals (like a holiday) and long-term ones (like a home for your retirement years).
Track your progress. Keep an eye on how your savings are growing. It can help you stay motivated.
Create a budget. Look at your income and spending. Then decide how much you can save each month. A clear budget can help you stay on track. You can learn more in our budgeting guide.
Use automatic transfers. Most banks let you set up automatic payments from your current account to your savings account. For example, you could move £50 on the 1st of each month.
Check your interest rate. Keep an eye on your rate and compare it with other banks. If you find a better deal, you might want to switch to earn more interest.

Can I open a savings account online?

Most banks and building societies in the UK let you open a savings account online. You can usually apply through their website or mobile app.

However, some accounts may need to be opened in person or by post. This is often the case for accounts for children, grandchildren or dependents, or with providers that have special rules. Some fixed-rate savings accounts, like bonds, may also require an in-person application – it depends on the provider.

Can you open a savings account for someone else?

Usually, you can’t open a savings account for another adult – unless you have legal authority, like a Power of Attorney. This means you’ve been officially allowed to manage someone else’s finances, including opening or closing accounts for them.

You can also open a joint savings account with someone else, like a partner or family member. These accounts are great if you’re saving for the same goal. Both of you can add and withdraw money.

To open a joint account, you’ll both need to prove your identity. Some banks may also require that at least one of you is already a customer.

Can a grandparent open a savings account for a grandchild?

Yes, grandparents can open a savings account for their grandchild. But they must have parental permission or be the child’s legal guardian.

The account is opened in your grandchild’s name, and they’ll usually get access to the money when they turn 18. You can add money to the account whenever you like.

If you have more than one grandchild, you’ll need to open a separate account for each one.

Parents can also open savings accounts for their children.

How does opening a savings account affect your credit score?

Opening a savings account won’t affect your credit score.

When you apply, the bank may run a soft credit check to confirm your identity. It doesn’t impact your credit score and won’t show up on your credit report like a hard credit check would.

Learn how to check your credit score in our guide.