- Martin Lewis explains the 1p savings challenge
- Top 10 easy access savings accounts
Martin Lewis explains the 1p savings challenge
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
As the Bank of England consecutively bumps up its Base Rate, savers are being offered some of the highest returns seen in decades. But, while accounts don’t quite beat the UK’s staggering 10.7 percent inflation, interest rates are fluctuating almost by the week, making it key for Britons to keep an eye on the market to make sure they’re investing in the savings account offering the most for their money.
While there are many different savings accounts on offer, from cash ISAs to regular savers, easy access accounts are a popular option amongst savers during the current uncertain financial climate.
According to a recent study carried out by budgeting experts Park Christmas Savings, a third of Britons surveyed said they will have to dip into savings to pay for unexpected cost of living emergencies this year.
Easy access accounts typically enable people to withdraw funds as and when needed with few or no penalties and generally require small opening deposits.
However, some accounts are offering higher 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 HSBC’s Online Bonus Saver with an Annual Equivalent Rate (AER) of three percent, 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While this is an easy access account, meaning savings can be withdrawn, it isn’t flexible and on the occasion that a withdrawal is made, a 0.65 percent standard rate will be applied to that month instead.
Placing second is the Yorkshire Building Society’s Rainy Day Account (Issue 2), also with an AER of three percent.
Households can save over £800 on gas bills with DIY heating tip [EXPLAINED]
Three in five Brits worry they won’t have enough money for the year [ANALYSIS]
Economy grows, gas prices fall, Putin struggles. 2023 just gets better [INSIGHT]
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.
Withdrawals are permitted on two days per year based on the anniversary of account opening, plus closure at any time.
Monmouthshire Building Society’s Premium Instant Access account ranks third, also with an AER of three percent.
This account requires a minimum of £25,000 to open and interest is calculated daily and applied to the balance annually on March 31.
Free and unlimited withdrawals are permitted, however, if the account falls below the minimum balance of £25,000, a variable rate of 0.05 percent AER will be applied until the account returns to the minimum balance.
Zopa bank’s Smart Saver places fourth 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.
Ranking fifth is Al Rayan Bank’s Everyday Saver (Issue 3) with an AER of 2.81 percent.
A minimum of £5,000 must be deposited to open this account and interest is calculated and credited to the account on the last day of every month. People can make unlimited withdrawals free of charge, and up to £1million can be invested overall.
Tipton & Coseley BS’ Limited Access (Issue 2) places sixth with an AER of 2.8 percent.
A minimum deposit of £100 is required to open the account and interest is calculated daily and applied monthly on December 31. However, the 2.8 percent rate is only applied to funds of £25,000 and over. An AER of 2.5 percent will be applied to any balance lower than this.
Savers can withdraw up to three times in one year without notice or a charge. After the third withdrawal, no further withdrawals, including account closure are allowed until the following calendar year.
Chorley Building Society’s Easy Access Saver places seventh with an AER of 2.75 percent.
The account can be opened with a minimum deposit of £500 and up to £500,000 can be invested. Interest is calculated daily and paid annually on December 31 and up to four withdrawals are permitted per calendar year without penalty.
Additional withdrawals will result in a lower rate of interest equivalent to Chorley BS’ Instant Access Account rate (currently one percent AER) being paid for the rest of the account year. The account year runs from January 1 to December 31.
Eighth on the list is Chase’s Saver Account with an AER of 2.7 percent.
There is no minimum deposit to open the account and interest is calculated daily and awarded to accounts monthly. Unlimited withdrawals are also permitted.
Chase bank accounts also offer a number of additional benefits, including a one percent cashback on everyday debit card spending for the first 12 months 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 as and when.
Placing ninth is Ford Money’s Flexible Saver with an AER of 2.65 percent.
This account requires a minimum deposit of £1 to open and interest is calculated daily and paid either monthly or annually, linked to the date the first deposit is received.
Withdrawals can be made online at any time to a nominated account or by transfer to another Ford Money savings account.
Finally, placing tenth on the list is Skipton BS’ Triple Access Saver (Issue 6), also with an AER of 2.65 percent.
A minimum deposit of £5,000 is required to open the account and interest can be applied with monthly or annually. However, if savers opt for monthly interest, a slightly lower rate of 2.62 percent will be applied to the balance.
Further additions can be made at any time and withdrawals are permitted, but only three withdrawals are allowed per calendar year.
- ‹ Previous Article
- Next Article›
- After all the hook-ups, Tinder wants to redefine the relationship
- Iran and Britain’s history of strained relations