Martin Lewis advises on moving your savings into ISAs
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Savers are currently benefiting from some of the most competitive interest rates on the market, as more banks and building societies amend their rates in line with successive Bank of England Base Rate hikes. However, rates are changing almost weekly, making it important for Britons to keep an eye on the markets to ensure they’re investing in the best deal.
There are a number of different savings accounts suitable for differing circumstances and offering a range of benefits.
Easy access savings accounts are one of the easiest to manage, as these typically allow savers to invest and withdraw funds instantly with minimal restrictions.
Regular savings accounts can be a good option for those looking to start building up a savings pot from scratch, as these tend to offer some of the highest interest rates on the market and people are encouraged to pay into these accounts monthly to keep them running.
Fixed-rate bonds offer a fixed rate of interest for a set length of time, which helps add a layer of certainty to savings. This means the bank or building society cannot change the interest rate during the term of the bond, which works well for account holders hoping to save long-term.
However, like with all accounts, some offer higher interest rates than others. Money comparison site Moneyfacts has pulled together the top three easy access, fixed rate, and regular savings accounts available right now.
Top three easy access savings accounts
Ranking top of the list is HSBC’s Online Bonus Saver with an AER of three percent.
This account can be opened with a minimum deposit of £1 and interest calculated daily and applied to the balance monthly.
The three percent rate is awarded on up to £10,000 of the balance every month a withdrawal is not made, while 1.4 percent will apply to figures over £10,000. While this is an easy access account, meaning savings can be withdrawn, it isn’t flexible and on the occasion that a withdrawal is made, a 0.65 percent standard rate will be applied to the balance that month instead.
Coming in second is Yorkshire Building Society’s Rainy Day Account (Issue 2), also with an AER of three percent.
This account offers a competitive, two-tiered variable interest rate and savers can get started with as little as £1. The three percent rate is applied to balances up to £5,000, while a 2.5 percent rate is applied to balances over £5,000.01.
Three in five Brits worry they won’t have enough money for the year [ANALYSIS]
Britons could get extra £175 with bank’s savings account deal [INSIGHT]
Britons could get extra £175 with bank’s savings account deal [EXPLAINED]
Withdrawals are permitted on two days per year based on the anniversary of account opening, plus closure at any time.
Zopa bank’s Smart Saver also ranks high with an AER of 2.86 percent and offers slightly more flexibility to account holders.
There is no minimum deposit requirement and interest can be paid away or compounded, and savers can open an account using the Zopa app. Withdrawals are permitted without any penalties and up to £85,000 can be invested.
Top three regular savings accounts
Ranking top of the list is Monmouthshire BS’ Christmas Saver Bond (Issue 5) with an Annual Equivalent Rate (AER) of 5.5 percent.
A minimum deposit of £10 is required to open the account and up to £2,400 can be invested over the course of the year.
The account allows up to £200 to be deposited per calendar month and withdrawals are not permitted until October 1, 2023. If the account is closed before this date, it will not qualify for the 5.5 percent AER and instead, will earn interest calculated at 0.2 percent AER.
The fixed term starts on the date the account is opened and interest is calculated on a daily basis on the balance in the account and paid on maturity.
Placing second is NatWest’s Digital Regular Saver with an AER of 5.12 percent.
The 5.12 percent interest rate is awarded to savings up to £5,000, after which 0.5 percent is awarded to figures from £5,001 and over.
There is no minimum deposit required to open the account and it allows people to save up to £150 each month.
Unlimited withdrawals are permitted without penalty and interest is awarded monthly.
Placing third is Royal Bank of Scotland’s Digital Regular Saver with an AER of 5.12 percent.
Like Natwest, the same interest rules apply to this bank account (5.12 percent paid up to £5,000, then 0.5 percent), interest is applied monthly, and unlimited withdrawals are also permitted.
Top three fixed rate bond savings accounts
Top of the list of high-interest fixed rate accounts is Close Brothers Savings’ Fixed Rate Bond with AER of 4.55 percent.
A minimum deposit of £10,000 is required to open the account and interest is calculated daily and paid annually and on maturity. The interest is fixed until the term ends after three years and withdrawals are not permitted before this date.
Coming in second is another Close Brothers Savings account with its slightly longer Fixed Rate Bond of five years, also offering an AER of 4.55 percent.
Similar rules apply; a minimum of £10,000 is required to open the account and interest is applied to the balance annually and on maturity. Withdrawals are also not permitted, so savers need to be sure they’re happy to leave their money in the account until the end of the term.
Placing third is Ford Money’s Fixed Saver Five Year with an AER of 4.55 percent.
A minimum deposit of £500 is required to open this five-year bond and interest is calculated daily and paid annually. Early withdrawals are also nor permitted during the term of the account.
Source: Read Full Article