With UK inflation remaining at 8.7 percent for a second month in a row, Britons are urged to search around for the best interest rates they can get to make their money work harder for them.
Currently, the Bank of England base rate sits at 4.5 percent and some banks and building societies have tried to pass on this rate with certain savings accounts.
There are a variety of accounts suitable for each person’s individual needs.
From ISAs to fixed bonds, there is a savings account perfect for each person. Lucinda O’Brien, savings expert from money.co.uk has pulled together some of the top rates on offer today.
She said: “Ahead of the Bank of England’s meeting on Thursday, the top interest rates on savings accounts have continued to increase.
“Ahli United Bank via Raisin is worth considering as its one-year fixed-term savings account is offering a whopping 5.7 percent, which would be useful if you have a lump sum that you don’t need to access until summer 2024.
“The minimum you can deposit is £1,000 and the maximum deposit is £85,000, which is covered by the FSCS.
“If you need your savings sooner, Allica Bank’s six-month fixed-term savings account has an interest rate of 4.92 percent.
“Notice savings accounts have also become more competitive, with a 35-day notice period rising to 4.05 percent.”
Easy access savings
Easy access accounts are typically more flexible, as these allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements.
The top rates available are 4.01 percent from Sainsbury’s Bank Defined Access Saver – Issue 45, as well as Principality Building Society Online Double Access Issue 2.
Fixed-rate savings accounts
Fixed-rate accounts add another level of certainty to savings, as these accounts enable savers to lock in an interest rate for a set length of time.
As mentioned above, Raisin UK Ahli United Bank (UK) – One Year Fixed Term Deposit takes the leading spot with an interest rate of 5.70 percent.
For those who want to put their money away for a shorter period, Allica Bank Six Month Fixed Term Savings Account (Issue 10) Saver offers 4.92 percent.
Cash ISAs are a particularly popular option, as these accounts enable savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA). However, some ISAs can come with a few more restrictions, like penalty charges for early access or transfers.
Savers can get five percent from The Nottingham Starter ISA Issue 11.
Alternatively, they can get 4.85 percent on the Royal Bank of Scotland Two Year Fixed Rate ISA Issue 325.
Britons wanting easy access can benefit from 3.78 percent with Shawbrook Bank’s Easy Access Cash ISA Issue 24.
Notice Savings accounts
A notice savings account is a type of savings account that has no fixed term but requires a notice period before people can withdraw their money. They offer more flexibility than a fixed-term account.
Savers can get 4.75 percent with United Trust Bank’s 200-Day Notice Deposit (Issue 2).
For those looking for a shorter notice period, they can get 3.95 percent with RCI Bank E-Volve Savings 14-Day Notice Account.