Following the 13 consecutive Base Rate hikes since the start of last year, high street banks and building societies have been boosting interest rates across different savings accounts.
With inflation remaining at 8.7 percent, and the cost-of-living crisis continuing to squeeze household finances, Britons with savings are urged to shop around to see where they can get the most out of their money.
There are a variety of savings 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: “The top interest rate on savings accounts now exceeds six percent with Close Brothers Savings One Year Fixed Rate Bond offering 6.05 percent – which is significantly higher than the Bank of England’s base rate of five percent.
“This will be welcomed by savers and encourages them to lock away their money and earn some interest. It’s important to note this account requires at least £10,000 to be deposited, but if you did open an account today with this deposit it would earn you £605 in interest after 12 months.
“Elsewhere, ISAs are trying to keep up, but if you want to beat the base rate, then a fixed-term ISA is a good place to start – Zopa Smart ISA One Year Fixed Term ISA Pot is currently offering 5.21 percent.”
Easy access savings accounts
Easy access accounts allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements. They are usually flexible and suitable for all savers.
Yorkshire Building Society Online Rainy Day Account Issue Two and The Family Building Society Online Saver (5) is offering the top interest rates today with savers benefitting from 4.35 percent.
Notice savings accounts
A notice savings account has no fixed term but requires a notice period before people can withdraw their money.
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For those who can wait a longer period, FirstSave offers a 90-day notice savings account giving five percent interest on savings. The minimum account deposit is £100.
Alternatively, for those who can’t give that amount of notice, RCI Bank E-Volve Savings offers 4.30 percent on their 14-day notice savings account. Savers have to deposit at least £1,000 to open the account.
Zopa Smart Saver (Boosted Pot – seven Day Notice) offers a 3.96 percent interest rate.
Fixed-rate accounts can add another level of certainty to savings, as these accounts allow savers to lock in a higher interest rate for a set length of time.
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Allica Bank has the top Six-Month Fixed Term Savings Account on their Issue 10 Saver. Savers can get 5.34 percent. Britons can invest between £10,000 to £250,000 into this account.
Taking the top spot for one-year fixed accounts is Close Brothers Savings as mentioned above. Savers can get 6.05 percent.
Cash ISAs allow people’s money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
For those who need instant access to their cash ISA, Principality Building Society’s Online ISA tops the list with an AER of 3.90 percent. The account can be opened with a minimum deposit of £1 and withdrawals can be made at any time.
For those looking for a fixed rate, Zopa’s Smart ISA is topping the list for one-year fixed ISAs with an AER of 5.21 percent.
Close Brothers Savings Two Year Fixed Rate Cash ISA offers 5.25 percent. However, savers must deposit between £10,000 and £2 million per account to get the interest.
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