Regulation of Your Savings Account
All banks are regulated by a governing body to make sure that your investments are protected and that you are given the treatment and rights as stipulated in their regulations. This governing body will lay down the most basic rules for the bank to follow when dealing with your account. Due to the competition for your business most banks will go beyond the bare minimum of compliance with these rules in order to secure your business.
Tax is applicable to most high interest savings accounts as the interest that is paid is usually regarded as an income. There are accounts such as ISA accounts that will give you tax free savings but they will be limited to a certain amount of savings. For many having to pay tax on interest is not an appealing idea and many people now look for high interest savings accounts with offshore banks. These banks are usually based in a country with lower tax rates.
