Savings accounts: Claer Barrett outlines where to get good rates
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While there is currently no savings account offering an interest rate that beats inflation, rates still remain some of the highest seen in a long time. For those able to put money aside, now could be a better time than most to invest in a savings account to get the best returns.
James Blower, head of savings at Zopa, previously told Express.co.uk: “The Bank of England’s Base Rate rises, which are aimed to help get inflation back to its two percent target, are the main reason that savings rates are also going up across the market.
“This is a win for consumers looking to save as it has created better and more competitive rates after a long period of low-interest options offered by legacy banks. In less than a year, the base rate has increased by 2.15 percent and this is forecast to rise further still in the coming months, meaning savings rates could continue to move up alongside this.
“While rates won’t increase forever, it’s a good time for consumers looking to start saving or those who haven’t seen their interest rate rise on their savings account to shop around for alternatives.”
There are a wide variety of savings accounts people can opt into, from fixed rates to cash ISAs.
However, easy access savings accounts tend to be one of the simplest of all, as they enable account holders to make payments and withdrawals with minimal restrictions.
However, some offer higher interest rates than others. MoneyFacts has pulled together the top 10 available right now.
Top 10 easy access savings accounts
Ranking top of the list is Al Rayan Bank’s Everyday Saver (Issue 3) with an Annual Equivalent Rate (AER) of 2.81 percent.
A minimum of £5,000 must be deposited to open this account and people can make unlimited withdrawals free of charge. Interest is calculated and credited to the account on the last day of every month.
Coming in second is Gatehouse Bank’s Easy Access Account with an AER of 2.8 percent.
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A minimum of £1 is required to open the account and as much as £250,000 can be deposited.
As the account operates under Sharia principles, profit is earned instead of interest and people can decide whether to have this applied to the account annually or monthly.
Ranking third on the list is Sainsbury’s Bank’s Defined Access Saver (Issue 32) with an AER of 2.75 percent.
A minimum deposit of £1 is required to open the account and interest is tiered. On a balance up to £999, a 1.05 percent AER is applied, while a balance from £1,000 to £500,000 will be awarded the AER of 2.75 percent.
A 0.9 percent AER will be applied to deposits of £500,001 and above, until the maximum investment of £2million is reached.
However, interest will drop if more than three withdrawals are made in a 12-month period.
Ranking fourth is Ford Money’s Flexible Saver with an AER of 2.5 percent.
A minimum of £1 is required to open the account and a maximum of £2million can be invested.
Unlimited withdrawals and permitted without penalty, and interest is paid on the anniversary of the account opening.
Paragon Bank’s Triple Access Account (Issue 10) lists fifth with an AER of 2.3 percent.
A minimum of £1 is required to open the account and a maximum of £500,000 can be invested. However, like with Sainsbury’s, only three withdrawals are permitted within 12 months without the account seeing a drop in interest.
Account holders can also choose whether they’d like interest to be paid monthly or annually.
Listing sixth on the list is Principality BS’ Online Double Access (Issue 2) with an AER of 2.25 percent.
A minimum £1 is required to open the account and interest is rewarded on January 1 every year. Withdrawals can be made twice every calendar year without penalty.
In seventh place is Aldermore’s Double Access Account (Issue 1) with an AER of 2.15 percent.
A minimum of £1,000 is required to open the account and a maximum of £1million can be invested.
While unlimited withdrawals are permitted, savers who make three or more withdrawals will see the interest rate drop from the day of their third withdrawal, to the day before the annual anniversary of their account opening.
Coming eighth is Zopa’s Smart Saver, also with an AER of 2.15 percent.
Zopa’s also allows customers to open personalised pots however, a maximum of £85,000 can be deposited to the account in total before account holders are no longer allowed to submit any more cash.
There is no minimum deposit and interest is paid monthly.
Nationwide BS’ 1 Year Triple Access Online Saver 15 ranks ninth on the list with an AER of 2.10 percent.
The account allows up to three withdrawals during its 12-month term and if exceeded, the AER will drop to 0.30 percent. There is no minimum deposit to open this account and interest is paid on the anniversary of its opening.
Tenth on the list is the Chase Saver Account with a new AER of 2.1 percent.
Those who have a current account with Chase can open the easy access saver with no minimum deposit. Customers can own up to 10 of these accounts at one time.
However, once the balance across all saver accounts reaches £250,000, account holders won’t be able to pay in any more cash, but will still earn interest.
Interest is calculated daily and awarded to accounts monthly – unlimited withdrawals are also permitted.
Chase bank accounts offer a number of additional benefits, including a one percent cashback on everyday debit card spending for a year and five percent interest on round-ups.
Customers can also enjoy zero fees on transactions abroad, as well as in-app card control to freeze spending when needed.
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