SAVINGS are the bedrock of most people's finances, so it makes sense always to obtain the best possible deal. That means not only searching out the highest interest rate but also making sure you pick an account that suits your needs.

Accounts can be opened and managed by post, telephone or internet and range from easy-access deals where no notice needs to be given to withdraw money, to those governed by a notice period, to fixed-term accounts that lock your money in for a specific "term".

Here is the Times Money guide to savings accounts.

Easy access

Easy-access accounts, also known as instant access, allow you to deposit and withdraw money whenever it is convenient without facing a penalty. Most can be opened with an initial deposit of just £1. Easy-access accounts from high street banks allow you to manage your account in person in branch, while internet-only providers let you open an account straightaway and transfer money quickly and easily online.

The interest rates on these accounts are lower than other types of savings accounts because you are able to withdraw money at any time and many advertised interest rates include short-term bonuses. This means you may need to switch providers regularly to stay on a competitive rate. The interest rates on easy-access accounts are also likely to fall after a cut in the Base rate by the Bank of England.

Notice accounts

If you are willing to give your savings provider some warning before you make a withdrawal, interest rates on notice accounts are usually higher than easy-access accounts. However, as with easy-access accounts, the rates can be changed by providers at short notice. The periods on notice accounts vary from a week to 120 days, or more. Some notice accounts are postal, which require a form to be filled in and sent to a savings provider.

Fixed-term savings accounts

The interest rates promised to savers who lock their cash away for a fixed period of time are often the best on the market. The benefit of fixed-term, fixed-rate savings accounts is that you can be assured that the interest rate on your cash will not fall when your back is turned.

The downside is that you will not have access to your money for the term of the account. Savings bonds, the most common fixed-rate product, are available for as little as three months, or as long as five years, or more. Just make sure you don't deposit cash you might need in an emergency. You might receive a high interest rate on a fixed-rate bond, but if you need to withdraw your cash after a couple of months you will lose most of the interest gained.

Regular savings

If you can afford to squirrel away some cash into a savings account every month you could sign up to a regular savings account. As long as you can guarantee to deposit a certain amount monthly, you will be rewarded with higher rates of interest. Savings providers usually set limits on the minimum and maximum amount you can deposit - typically a minimum of £20 and a maximum of £250.

Cash Isas

The interest earned on savings held in cash Isas is not taxed by the Government. However, there is a limit to the amount of money you can hold in an Isa. The limit of £3,600 is being raised to £5,100 for people over the age of 50 from October 6. This higher limit will be extended to everyone else from April 2010.

Cash Isa accounts can take many forms. Most are easy, or instant-access accounts but occasionally the rate is fixed. Stocks and shares Isas, which are also tax free, are an investment product, rather than a savings product and are linked to the stock market.

Children's accounts

Opening a savings account for children is an excellent way to teach them about the benefits of saving. Children's accounts, aimed at savers under the age of 18, come in many forms, such as regular-saver, fixed-rate or instant-access accounts. There are also different accounts tailored to the age of your child. Some offer good returns.

Over 50s savings

There is a handful of accounts available rewarding older savers with competitive rates of interest. However, make sure you check the whole market before opting for an over-50s account. There might be better deals available on accounts open to everyone.

Choosing the right account

Once you have decided which type of savings account you would like to open, it is important to shop around to find the best rate of interest available at the best terms. There are a number of comparison websites you can consult, including Moneysupermarket.com, Moneyfacts.co.uk, uSwitch.co.uk and Fool.co.uk.

Are my savings safe?

If a bank or building society goes bust the Government guarantees to compensate savers who have lost deposits up the value of £50,000 through the Financial Services Compensation Scheme (FSCS) . It makes sense, therefore, to have no more than £50,000 with a single institution.

In light of the problems faced by customers with deposits in Icesave and Kaupthing Edge, it may be worth contacting the FSCS before you open an account with a foreign-owned bank to ensure you will be covered. This also goes for accounts in banks based in the Channel Islands.

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Five websites

Moneyfacts.co.uk

Moneysupermarket.co.uk

Fool.co.uk

Direct.gov.uk

Money Made Clear