Martin Lewis says 'more people' will be paying tax on savings
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As the Bank of England continues to hike its Base Rate in a bid to stem soaring inflation, savers have been largely reaping the benefits. High street banks have been reflecting the increases with higher interest rates across all types of accounts. However, while there are currently no savings accounts that beat the UK’s 10.1 percent inflation rate, some are offering higher rates than others.
Rachel Springall, finance expert at Moneyfacts, said: “Interest rates have continued to rise across the savings spectrum, and we witnessed nine consecutive months of increases to all average rates for the first time on our records.
“The average easy access rate breached one percent for the first time in over 10 years and fixed rate bonds saw the average shelf life fall to 26 days, the lowest figure seen since 2009.
“These highlights are proof of the positive direction of the cash savings market, with further rises expected due to the Bank of England Base Rate rises.”
While there is a wide range of different savings accounts people can opt into to suit different needs and requirements, easy access savings accounts tend to be one of the simplest of all.
Easy access accounts typically allow savers to make payments and withdrawals with minimal restrictions and tend to have low opening deposit requirements.
However, some offer higher interest rates than others. Money comparison site MoneyFacts has pulled together the top 10 available right now.
Top 10 easy access savings accounts
Ranking top of the list is Earl Shilton BS’ Progress account with an Annual Equivalent Rate (AER) of 2.85 percent.
The account is aimed at those aged between 18 and 50 with limited instant access paying a conditional bonus.
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This account requires a minimum deposit of £100 to open and a maximum of £180,000 can be invested. Interest is calculated daily and compounded annually on the last day of February.
Up to six withdrawals are permitted per year to qualify for the 2.85 percent bonus rate. If any more withdrawals are made, interest will reduce to 1.8 percent.
Coming in second 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.
Placing third is Aldermore’s Easy Access Account (Issue 15) with an AER of 2.75 percent.
A minimum deposit of £1,000 is required to open the account and interest is calculated daily and paid either monthly or annually.
Up to £1,000,000 can be invested, and unlimited withdrawals are permitted without penalty.
Ranking fourth on the list is Skipton BS’ Easy Access Saver (Issue 1) with an AER of 2.65 percent.
A minimum £1 deposit is required to open the account and interest is paid on the anniversary of the account opening. Unlimited withdrawals are also permitted.
Skipton BS’ Everyday Saver (Issue 12) places fifth with an AER of 2.65 percent.
This account can also be opened with a minimum of £1 and account holders have the opportunity to decide whether they’d like interest paid every month or once a year.
Like Skipton’s Easy Access Saver, unlimited withdrawals are also permitted with this account without penalty.
Placing sixth on the list is Cumberland BS’ eSavings Account (Issue 3) with an AER of 2.6 percent.
A minimum deposit of £1 is required to open the account and up to £50,000 can be invested.
Interest is compounded and applied to the balance yearly, and withdrawals are also permitted.
In seventh place is Atom Bank’s Instant Saver with an AER of 2.55 percent.
There is no minimum deposit required to open this account and up to £100,000 can be invested. Interest is applied to the balance monthly and unlimited withdrawals are permitted.
Placing eighth is another Skipton BS’ account, its Trust Saver (Issue 1) with an AER of 2.55 percent.
This account requires a minimum deposit of £10,000 to open and up to £1,000,000 can be invested. Interest can be paid away or compounded and will be applied to the balance on the anniversary of opening. Withdrawals are also permitted for this account.
Tandem Bank’s Instant Access Saver places ninth with an AER of 2.55 percent.
There is no minimum deposit required to open this account, interest is paid monthly, and up to £250,000 can be invested.
Last but not least, Principality BS’ Online Double Access (Issue 2) places tenth with an AER of 2.5 percent.
A minimum deposit of £1 is required to open and up to £1,000,000 can be invested. Interest must be compounded and will be applied to the balance yearly on January 1. Up to two withdrawals are permitted every calendar year.
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