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The savings accounts paying the most interest

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06/01/2020
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 – with unlimited withdrawals

1.41% Shawbrook Bank – minimum deposit £1,000; apply online.

1.40% Gatehouse Bank – minimum deposit £1; apply and access online; sharia bank so rate is expected profit rate.

1.35% Marcus – minimum deposit £1; apply online.

Easy access accounts – with limited withdrawals

1.40% Yorkshire Building Society – minimum deposit £100; apply and access online; withdrawals allowed on one day per account year, based on anniversary of account opening date.

Notice accounts

1.71% BLME 90 Day Notice – 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.

1.55% Close Brothers Savings 95 Day Notice – minimum deposit £10,000; apply by post; withdrawals subject to 95 days’ notice; no earlier access.

1.55% Shawbrook Bank 120 Day Notice – minimum deposit £1,000; apply online; withdrawals subject to 120 days’ notice; no earlier access.

1.36% OakNorth Bank 35 Day Notice – minimum deposit £1; apply and access online; withdrawals subject to 35 days’ notice; no earlier access.

One-year fixed term bonds

1.80% BLME – minimum deposit £1,000; apply online; sharia bank so rate is expected profit rate.

1.65% Ford Money – minimum deposit £500; apply online or by phone.

Two-year fixed term bonds

1.95% BLME – minimum deposit £1,000; apply online; sharia bank so rate is expected profit rate.

1.80% Ford Money – minimum deposit £500; apply online or by phone.

Three-year fixed term bonds

2.10% BLME – minimum deposit £1,000; apply online; sharia bank so rate is expected profit rate.

2.00% United Bank UK – minimum deposit £2,000; apply in branch or by post; withdrawals allowed at provider’s discretion subject to 270 days’ loss of interest.

Five-year fixed term bonds

2.38% United Bank UK – minimum deposit £2,000; apply in branch or by post; withdrawals allowed at provider’s discretion subject to 365 days’ loss of interest.

2.10% United Trust Bank – minimum deposit £5,000; apply online.

Regular savings accounts

3% variable – Kent Reliance; only available in branch; minimum monthly deposit £25; maximum monthly deposit £500.

2.75% – First Direct; open online or by phone; minimum monthly deposit £25; maximum monthly deposit £300; only available to customers who hold a First Direct 1st Account.

Easy Access cash ISAs

1.35% Al Rayan – minimum deposit £50; apply online, in branch, by post or by phone; sharia bank so rate is expected profit rate.

1.35% Yorkshire Building Society – minimum deposit £100; apply and access online; withdrawals allowed on one day per account year, based on anniversary of account opening date.

1.31% Cynergy Bank – minimum deposit £1; apply and access online.

One-year fixed term cash ISAs

1.41% Charter Savings Bank – minimum deposit £5,000; apply online; withdrawals allowed subject to 150 days’ loss of interest.

1.40% Aldermore – minimum deposit £1,000; apply online or by post; withdrawals allowed subject to 90 days’ loss of interest.

Two-year fixed term cash ISAs

1.55% Ford Money – minimum deposit £500; apply online or by phone; withdrawals allowed subject to 180 days’ loss of interest.

1.55% Aldermore – minimum deposit £1,000; apply online; withdrawals allowed subject to 180 days’ loss of interest.

Three-year fixed term cash ISAs

1.70% Aldermore – minimum deposit £1,000; apply online; withdrawals allowed subject to 180 days’ loss of interest.

1.67% United Bank UK – 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.

Five-year fixed term cash ISAs

2.03% United Bank UK – minimum deposit £2,000; apply in branch or by post; access on closure or full transfer out only, subject to 365 days’ loss of interest.

1.75% Coventry Building Society – minimum deposit £1; apply online, in branch, by post or by phone; access on closure or full transfer out only, subject to 180 days’ loss of interest.

Savers feeling the pain across the board

Anna Bowes, Co-founder of Savings Champion says: “Amazingly, even though the base rate has remained level at 0.75% since August 2018, there were over 750 rate cuts to existing savings accounts in 2019 alone. Compare this to just 137 rate increases. One of the most recent cuts was to the already abysmal HSBC Flexible Saver Account. This was paying just 0.15% until 18 December 2019, at which point it was cut to 0.10%.

“But, it’s not just existing savers who are feeling the pain. Best buy savings rates have been dropping too, with fixed term bonds and ISAs suffering the most.

“A year ago, you could have opened a 12 month fixed term bond with sharia provider Gatehouse Bank paying 2.10% AER – however, when looking to reinvest now on maturity, the best rate currently available is just 1.80% AER – also from a sharia provider, BLME.

“Lesser-used notice accounts have been a bit more resilient. A year ago, you could have opened a 120 day notice account with Gatehouse Bank paying 1.87% AER – today the best notice account is a 90 day notice account with BLME paying 1.71% AER – almost as much as a 12 month fixed term account.

“Meanwhile, best buy easy access accounts have been the least affected – with the best account from Shawbrook Bank paying 1.41% AER today, compared to 1.50% AER a year ago from Marcus. Although the rate on the Marcus account has recently been cut to 1.35% for new customers – as there is no longer a bonus on offer – those who did open the account when it had a bonus will continue to enjoy that, as well as the underlying rate, for the remainder of the bonus period.

“The most important thing to remember is that you can still make a real difference to the interest in your pocket by choosing the best accounts. For example, you could earn over 14 times more in interest by choosing the best easy access account available rather than HSBC’s Flexible Saver. As mentioned above, Shawbrook Bank is paying 1.41% AER on its Easy Access Account Issue 17. So, on a balance of £85,000 you could either earn £85 gross over the next 12 months with HSBC or £1,198.50 with Shawbrook, assuming these rates remain the same.”

All rates correct as of 06/01/20

 

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