Why are we not allowed to touch the money that we put in the bank if we want to earn interest?

If you want to earn interest from your money deposited in the bank, your bank gives you a period for you to start using your money, lets say, you could only use your money after a year or 2 years in order for you to gain interest. In Brazil, if i put my money into a saving account, i earn interest every month and im allowed to withdraw my money at any time. Well, its obvious that if i withdraw my money my interest will be reduced (depending in the amount of money i have). Can someone clarify me why is the law different in the UK? Thanks very much|||I do not know what type of savings account it is that you are looking at, but banks in the UK do offer standard savings accounts in which you have access to your money at any time. They all pay interest. The following link is for just for such an account at Barclays:





http://www.personal.barclays.co.uk/BRC1/鈥?/a>





Other banks offer standard savings accounts as well. You may be looking at some sort of time or term deposit, in which you promise to the bank that you will not withdraw your money for a predetermined amount of time, say one year. In return, you will usually earn a much higher interest rate than with a standard savings account.|||its simple:





the accounts that do not allow you to withdrawal any money for "x" amount of years guarantee you a fixed return which is essentially a fixed interest rate (usually compounded annually).





the accounts that allow you to withdrawal your money at any given time, do not guarantee you a fixed return. For example i have one of those high savers accounts and when i opened it, the Interest rate was 5%. However, now it is at 3.75%.





therefore, in order to give you a fixed return (stable interest rate) they give you restrictions (not allowing you to take the money out for "x" periods"|||good point above. However it is rooted in the fact that you do not know how to make money with money.





The bank makes money with money (your money). So if you give it to them for longer commitment they put it to work and know that they can keep it working because they will pay you 5% if you are lucky so they can make 200 to 500% on it. this is how all the bank employees get paid.





Now if you put it in an account where you are likely to pull it out, they pay you less. like 1 or 2%





The money does not sit in a room with a dude watching it holding a shot gun. They lend it to business people so they can go make money with your money. Because you don't know how.





Read a book called RICH DAD POOR DAD by Robert Kiyosagi. It will give a realistic look to financial education.