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The savings accounts paying the most interest

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03/08/2020
If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal is a good place to start.

Leaving your money languishing in an account paying next-to-nothing means you’re missing out on valuable interest.

Here, we list the top-paying, open-to-all accounts on the market:

Easy access accounts

1.16% NS&I Income Bonds – minimum deposit £500; apply online, by post or by phone. Interest paid out monthly – can’t be compounded.

1% NS&I Direct Saver – minimum deposit £1; apply and access online or by phone.

0.80% NS&I Investment Account – minimum deposit £20; apply and access by post.

0.80% Dudley Building Society Limited Access Bonus – minimum deposit £100; apply and access in branch or by post. Rate includes a conditional bonus, subject to no more than three withdrawals per year. If this condition is not met, the rate will reduce to 0.10% for the remainder of the account year.

0.75% Saga Easy Access Savings Account – minimum deposit £1; apply online, access online or by phone. Rate includes a 0.20% bonus for the first 12 months. Interest is paid monthly into the account.

Notice accounts

1.10% BLME 90 Day Notice Account (Issue 3) – minimum deposit £10,000; apply and access online; withdrawals subject to 90 days’ notice; no earlier access; sharia bank so rate is expected profit rate.

1% UBL UK 35 Day Notice Account – minimum deposit £1; apply and access in branch and by post; withdrawals subject to 35 days’ notice; no earlier access.

1% UBL UK 90 Day Notice Account – minimum deposit £1; apply and access in branch and by post; withdrawals subject to 90 days’ notice; no earlier access.

0.90% Al Rayan Bank 60 Day Notice Account – minimum deposit £250; apply and access online, by post, in branch or by phone; withdrawals subject to 60 days’ notice; no earlier access.; sharia bank so rate is expected profit rate.

0.85% Dudley Building Society Saver 65 – minimum deposit £10,000; apply and access in branch and by post; withdrawals subject to 65 days’ notice or loss of interest. This is a tiered account – it pays 0.55% AER on balances from £1,000 to £10,000, 0.85% AER on balances from £10,000 to £50,000 and 1% AER on balances above £50,000.

One-year fixed term bonds

1.20% QIB UK 1 Year Fixed Term Deposit via Raisin saving platform – minimum deposit £1,000; apply online via Raisin; no access within term; sharia bank so rate is expected profit rate.

1% United Trust Bank 1-Year Bond – minimum deposit £5,000; apply online; no access within term.

1% BLME 1 Year Premier Deposit Account – minimum deposit £1,000; apply online. No access within the term; sharia bank so rate is expected profit rate.

Two-year fixed term bonds

1.40% QIB UK 2 Year Fixed Term Deposit via Raisin saving platform – minimum deposit £1,000; apply online via Raisin; no access within term; sharia bank so rate is expected profit rate

1.35% BLME 2 Years Premier Deposit Account – minimum deposit £1,000; apply online. No access within the term; sharia bank so rate is expected profit rate.

1.15% Close Brothers Savings 2 Year Fixed Rate Bond – minimum deposit £10,000; apply online and by phone; no access within the term.

Three-year fixed term bonds

1.40% BLME 3 Year Premier Deposit Account – minimum deposit £1,000; apply online; no access within term; sharia bank so rate is expected profit rate.

1.30% UBL UK 3 Year Fixed Term Deposit – minimum deposit £2,000; apply in branch or by post; withdrawals are allowed at the provider’s discretion, subject to 270 days’ loss of interest.

1.26% Charter Savings Bank 3 Year Fixed Rate Bond – minimum deposit £5,000; apply online and by post. No access within the term.

Five-year fixed term bonds

1.50% BLME 5 Year Premier Deposit Account – minimum deposit £1,000; apply online. No access within the term; sharia bank so rate is expected profit rate.

1.40% UBL UK 5 Year Fixed Term Deposit – minimum deposit £2,000; apply in branch and by post; withdrawals are allowed at the provider’s discretion, subject to 365 days’ loss of interest.

1.25% Shawbrook Bank 5 Year Fixed Rate Bond Issue 33 – minimum deposit £1,000; apply online; no access within the term.

Easy Access cash ISAs

0.90% Cynergy Bank Online ISA (Issue 4) – minimum deposit £1; apply and access online; transfers in allowed. This is not a flexible ISA nor a portfolio ISA.

0.90% NS&I Direct ISA – minimum deposit £1; apply and access online or by phone; transfers in not accepted. This is not a flexible ISA nor a portfolio ISA.

0.60% Al Rayan Bank Instant Access Cash ISA – minimum deposit £50; apply and access online, in branch, by post or phone; sharia bank so rate is expected profit rate. Transfers in are allowed. This is not a flexible ISA nor a portfolio ISA.

0.60% Bath Building Society Instant ISA – minimum deposit £1; apply and access in branch or by post; transfers in allowed. This is not a flexible ISA nor a portfolio ISA.

0.60% Gatehouse Bank Easy Access Cash ISA – minimum deposit £1,000; apply and access online; sharia bank so rate is expected profit rate. Transfers in are allowed. This is not a flexible ISA nor a portfolio ISA.

One-year fixed term cash ISAs

0.76% Charter Savings Bank 1 Year Fixed Rate Cash ISA – minimum deposit £5,000; apply online; access on closure only, subject to 150 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is a portfolio ISA – so you can open more than one type of cash ISA with the provider (e.g. fixed and variable) in the same tax year.

0.70% Gatehouse Bank 1 Year Fixed Term Cash ISA – minimum deposit £1,000; apply online; withdrawals subject to a reduction in profit of 90 days; sharia bank so rate is expected profit rate; transfers in are allowed. This is not a flexible ISA nor a portfolio ISA.

0.65% Yorkshire Building Society Fixed Rate Cash ISA until 31 August 2021 – minimum deposit £100; apply by post or in branch; access on closure only, subject to 60 days’ loss of interest; transfers accepted. This is not a flexible ISA nor a portfolio ISA.

Two-year fixed term cash ISAs

0.90% UBL UK 2 Year Fixed Rate Cash ISA – minimum deposit £2,000; apply in branch or by post. Access on closure or full transfer out only, subject to 180 days’ loss of interest; transfers accepted. This is not a flexible ISA nor a portfolio ISA. Interest is paid on maturity, annually, or monthly. Interest must be paid to a nominated account, it cannot be added to the account unless it is paid on maturity.

0.90% Secure Trust Bank 2 Year Fixed Rate Cash ISA (26 Aug 2022) – minimum deposit £1,000; apply online; access on closure only, subject to 180 days’ loss of interest; transfers in accepted. This is not a flexible ISA nor a portfolio ISA.

0.85% Charter Savings Bank 2 Year Fixed Rate Cash ISA – minimum deposit £5,000; apply online; withdrawals allowed, subject to 180 days’ loss of interest; transfers accepted. This is not a flexible ISA. This is a portfolio ISA – so you can open more than one type of cash ISA with the provider (e.g. fixed and variable) in the same tax year.

Three-year fixed term cash ISAs

1.10% UBL UK 3 Year Fixed Rate Cash ISA – minimum deposit £2,000; apply in branch or by post. Access on closure or full transfer out only, subject to 270 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA nor a portfolio ISA. Interest is paid on maturity, annually, quarterly or monthly. Interest must be paid to a nominated account, it can’ t be added to the account unless it is paid on maturity.

1% Gatehouse Bank 3 Year Fixed Term Cash ISA – minimum deposit £1,000; apply online; withdrawals allowed, subject to 270 days’ loss of interest; sharia bank so rate is expected profit rate; transfers accepted. This is not a flexible ISA nor a portfolio ISA.

0.85% Yorkshire Building Society Fixed Rate Cash ISA until 31 August 2023 – minimum deposit £100; apply by post or in branch. Access on closure only, subject to 180 days’ loss of interest; transfers accepted. This is not a flexible ISA nor a portfolio ISA.

Five-year fixed term cash ISAs

1.21% UBL UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000; apply in branch or by post; access on closure or full transfer only, subject to 365 days’ loss of interest; transfers accepted. This is not a flexible ISA nor a portfolio ISA. Interest is paid on maturity, annually, quarterly or monthly. Interest must be paid to a nominated account, it cannot be added to the account unless it is paid on maturity.

1.20% Secure Trust Bank 5 Year Fixed Rate Cash ISA (26 Aug 2025) – minimum deposit £1,000; apply online. Access on closure only, subject to 270 days’ loss of interest. Transfers in accepted. This is not a flexible ISA nor a portfolio ISA.

1.10% Furness Building Society 5 Year Fixed Rate Cash ISA (Issue 167) – minimum deposit £1,000; apply in branch or by post. Access on closure only, subject to 180 days’ loss of interest. Transfers in accepted. This is not a flexible ISA nor a portfolio ISA. An online version is also available at the same rate.

‘Encouraging signs of competition’

Anna Bowes, co-founder of website Savings Champion, says: “While many of the best buy rates have continued to fall, the rate at which they are falling has slowed. In fact, there have even been some encouraging signs of competition over the last couple of weeks from some of the challenger banks.

“United Trust Bank launched a 1-year fixed rate bond paying 0.90% AER, which topped the best buy table when Allica Bank withdrew its bond that was paying 0.95% AER.

“On the same day, Charter Savings Bank launched a rival account paying 0.91% AER.

“Not to be so easily toppled, United Trust Bank retaliated by offering 1% AER and it remains in the top spot.

“Even better, there have been some improved rates launched by Sharia provider QIB UK, via the Raisin UK platform. The 1 year fixed term deposit is now paying 1.20% AER and the 2-year is paying 1.40%. This is considerably more than the standard fixed rate bonds on offer, so they could be worth a look.

“Cash ISAs have really suffered over the last few months and the best 1-year fixed rates fell to as low as 0.65% recently – but Charter Savings Bank has again bucked the trend by launching a market-leading 1-year Fixed Rate ISA paying 0.76% AER. This is still almost half the rate that was available at the beginning of the year, but it’s a start and so fingers crossed that it continues.

“Finally, Cynergy Bank extended the accessibility of its joint market-leading variable rate cash ISA – Online ISA (Issue 4) – paying 0.90% to all customers. Previously this account had only been available to existing customers. This rate matches that offered by NS&I however, unlike the NS&I cash ISA, Cynergy Bank accepts transfers from existing cash ISAs as well as new subscriptions.”

All rates correct as of 03/08/20.

The Raisin UK savings marketplace features attractive savings products from a range of partner banks. Click here to learn more

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