These pay interest and do not usually provide a cheque book. Each bank has a variety of different types of account, all of which have in common the fact that the rate of interest paid is higher for longer term deposits or those where notice is required. It is usually possible to gain access to the money at shorter notice on payment of an interest penalty.

Interest rates are almost always variable with deposit accounts, except with some building societies who may offer fixed rates for deposits for an agreed period of time.

With both current accounts and deposit accounts, interest is normally liable to income tax and the bank will usually deduct lower rate tax at source. People who know in advance that they will not be liable to tax, for example children, can complete a form and receive the interest gross.