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High street brands make a savings come back: The deals which could beat inflation

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
04/04/2023

Interest rates are climbing across the board but further Bank of England base rate hikes could be at an end as inflation is expected to come down to target. For savers, this could mean a chance of locking in an inflation-busting deal.

Leaving your money languishing in a low-paying savings account or your current account means you could be missing out on valuable interest. With the cost-of-living crisis and inflation still in double digits, it’s more important than ever to make every penny count.

Savings interest rates have been rising off the back of 11 Bank of England base rate hikes and while savers hope they can earn a little more, the governor has hinted we could be close to the peak.

Anna Bowes, co-founder of Savings Champion, said there’s an opportunity for savers to lock in higher rates now before inflation is expected to come down closer to its 2% target, meaning they could bag inflation-beating deals down the line.

Bowes said: “It’s been another positive month for savers, with best buy interest rates climbing across the board.

“Although the top easy access account available is still 3.40% via the Chip app, a flurry of activity recently means there are now plenty of easy access accounts available paying 3.30% AER or more. And it may be because it’s right in the middle of ISA season, but the top easy access cash ISAs available are all paying well over 3% – and Coventry Building Society and Santander are at the top of the table – both high street brands that people will be familiar with – great news!

“Once again best buy fixed term bond rates have jumped upwards with the top one-year now paying 4.51% and a plethora of others paying 4.45% or more.

“Over the longer term, rates are as high as 4.68% AER (Al Rayan three-year bond) and over five-years, while marginally lower at 4.65% AER, if you were to lock some of your money away for that sort of term, if inflation does come down to closer to the 2% target, you could enjoy inflation-busting interest for at least some of the term that your money is deposited!

“A balanced approach to your savings portfolio is probably a wise move as we are possibly now close to the top of the rising base rate cycle.”

Top cash savings deals right now

Here are the top-paying, open-to-all savings accounts on the market right now:

Easy access accounts

3.40% Chip Instant Access Account – minimum deposit £1. Apply and access via mobile app or via QR code from the Chip website.

3.34% Zopa Smart Saver – minimum deposit £1. Apply and access via mobile app.

3.30% Coventry Building Society Limited Access Saver (Online, Issue 8) – minimum deposit £1. Apply and access online. Maximum of six easy access withdrawals per year. Additional withdrawals are allowed (including closure), subject to 50 days’ loss of interest.

3.30% Secure Trust Bank Access Account (Issue 7) – minimum deposit £1,000. Apply online. Access online or by telephone.

3.30% Al Rayan Bank Everyday Saver (Issue 3) – minimum deposit £5,000. Apply and access via mobile app, online or by phone. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

Notice accounts

4% Market Harborough Building Society 180 Day Notice Account – minimum deposit £10,000. Apply online or via mobile app. Access online, by phone, email or via mobile app. Withdrawals are subject to 180 days’ notice only, no earlier access is allowed.

4% Allica Bank 180 Day Notice Savings Account (Issue 1) – minimum deposit £10,000. Apply online or via mobile app. Access online, by telephone, email or via mobile app. Withdrawals are subject to 180 days’ notice only, no earlier access is allowed.

3.65% Cynergy Bank Online Notice Saver – 120 Day Notice  – minimum deposit £500. Apply and access online. Withdrawals are subject to 120 days’ notice only; no earlier access is allowed.

3.60% Cynergy Bank Online Notice Saver – 95 Day Notice – minimum deposit £500. Apply and access online. Withdrawals are subject to 95 days’ notice only; no earlier access is allowed.

3.55% Oxbury 90 Day Notice Account (Issue 3) – minimum deposit £1,000. Apply online. Access online or via mobile app. Apply and access online. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed.

One-year fixed term bonds

4.51% Smart Save 1 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.50% United Bank UK 1 Year Fixed Term Deposit – minimum deposit £2,000. Apply in branch, online by post or via mobile app.

4.50% Al Rayan Bank 12 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

Two-year fixed term bonds

4.62% Al Rayan Bank 24 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

4.54% Smart Save 2 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.53% Hampshire Trust Bank 2 Year Bond (Issue 77) – minimum deposit £1. Apply online. No access within the term.

Three-year fixed term bonds

4.68% Al Rayan Bank 36 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

4.55% United Trust Bank 3 Year Bond – minimum deposit £5,000. Apply online. No access within the term.

4.55% Cynergy Bank 3 Year Fixed Rate Bond – minimum deposit £10,000. Apply online. No access within the term.

Five-year fixed term bonds

4.65% United Trust Bank 5 Year Bond – minimum deposit £5,000. Apply online. No access within the term.

4.60% Raisin UK 5 Year Fixed Term Deposit (provided by Tandem) – minimum deposit £1,000. Apply online. No access within the term.

4.60% Monument 5 Year Fixed Term Deposit ‒ minimum deposit £25,000. Apply via mobile app. No access within the term.

Easy access cash ISAs

3.25% Coventry Limited Access ISA (Online, Issue 4) – minimum deposit £1. Apply online. A maximum of six easy access withdrawals can be made each year. Any additional withdrawals in that year are subject to 50 days’ loss of interest on the amount withdrawn. Transfers in are allowed. This is a flexible ISA. This is not a portfolio ISA.

3.20% Santander eISA (Issue 18) – minimum deposit £500. Apply in branch, online or via mobile app. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. After the first 12 months, the account reverts to the ISA Saver.

3.20% Paragon Triple Access ISA (Issue 12) – minimum deposit £1. Apply and access online. Transfers in are allowed. This is a flexible ISA. This is a portfolio ISA. If more than 3 withdrawals are made in a 12 month period, the rate payable will drop to 0.75% from the date of the 4th withdrawal, with the 12 month period resetting on the anniversary of the account opening date.

3.15% Gatehouse Bank Easy Access Cash ISA – minimum deposit £1. Apply online. In order to comply with Sharia Law the rates listed are an expected profit rate. Expected profit paid annually. Profit must be paid to a nominated account, it cannot be added to the account. Transfers in are accepted.

3.15% Teachers Building Society Triple Cash ISA for Everyone (Issue 1) – minimum deposit £100. Apply online or by post. Up to three penalty free withdrawals per calendar year, the rate will drop to 0.05% AER if there are four or more withdrawals. Transfers in are not allowed. This is not a flexible ISA. This is not a portfolio ISA. Interest is paid on the 5th of April each year.

One-year fixed term cash ISAs

4.15% Santander 1 Year Fixed Rate ISA  – minimum deposit £500. Apply online, in branch or via mobile app. Access on closure only, subject to 120 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. The maturity date is 01/04/2024. On maturity, the account is transferred to the ISA Saver.

4.11% Virgin Money 1 Year Fixed Rate Cash E-ISA (Issue 560) – minimum deposit £1. Apply branch or online. Withdrawals are allowed, subject to 60 days’ loss of interest. The maturity date is 31/01/2024. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. You need to have a current account with Virgin Money which was opened on or after 4 December 2019. Or, you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B such as a Signature Current Account

4.10% Leeds Building Society 1 Year Fixed Rate Cash ISA (Issue 182) – minimum deposit £100. Apply in branch, online or by post. Withdrawals are allowed, subject to 60 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. The maturity date is 30/04/2024.

Two-year fixed term cash ISAs

4.26% Virgin Money 2 Year Fixed Rate Cash e-ISA (Issue 561) – minimum deposit £1. Apply online. Withdrawals are allowed, subject to 90 days’ loss of interest. The maturity date is 24/04/2025. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.25% Santander 18 Mont Fixed Rate ISA – minimum deposit £500. Apply online, in branch or via mobile app. Access on closure only, subject to 120 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. The maturity date is 01/10/2024. On maturity, the account is transferred to the ISA Saver.

4.20% Leeds Building Society 2 Year Fixed Rate Cash ISA (Issue 176) – minimum deposit £100. Apply online, in branch or via post. Withdrawals are allowed, subject to 150 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. The maturity date is 30/04/2025.

Three-year fixed term cash ISAs

4.20% Gatehouse Bank 3 Year Fixed Term Woodland Cash ISA – minimum deposit £1,000. Withdrawals within the term will be subject to a reduction in profit of 270 days. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate. Transfers in are accepted. For every Green Saver account opened or renewed, a tree in a UK woodland is planted on your behalf.

4.20% Leeds Building Society 3 Year Fixed Rate Cash ISA (Issue 137) – minimum deposit £100. Apply in branch, by post or online. Withdrawals are allowed, subject to 240 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. The maturity date is 04/05/2026.

4.15% Paragon 3 Year Fixed Rate Cash ISA ‒ minimum deposit £500. Apply online. Withdrawals are allowed, subject to 270 days’ loss of interest. Transfers in are allowed. This is not a portfolio ISA. This is not a flexible ISA.

Five-year fixed term cash ISAs

4.2% Gatehouse Bank 5 Year Fixed Term Woodland Cash ISA ‒ minimum deposit £1,000. Withdrawals within the term will be subject to a reduction in profit of 270 days. The rate is not guaranteed, in order to comply with Sharia Law the rates listed are an expected profit rate. Transfers in are accepted. For every Green Saver account opened or renewed, a tree in a UK woodland is planted on your behalf.

4.05% United Trust Bank UK 5 Year Fixed Rate Cash ISA – minimum deposit £15,000. Apply online. Withdrawals are allowed, subject to a penalty that is based on the following calculation; amount of the withdrawal, multiplied by the number of days left until maturity, multiplied by the interest rate, divided by 365. Interest can be withdrawn annually without penalty. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4% Progressive Building Society 5 Year Fixed Rate ISA Bond (Issue 4) – minimum deposit £500. Apply in branch or by post. Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.