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The savings accounts paying the most interest

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04/03/2019
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

1.51% The Family Building Society – minimum deposit £15,000; apply in branch, by post or online. You won’t be able to add new funds after 8 March 2019.

1.5% Marcus – minimum deposit £1; apply and access online; rate includes a 0.15% bonus for the first 12 months.

1.5% Cynergy Bank – minimum deposit £1; apply and access online; rate includes a 0.50% bonus for the first 12 months.

Easy access accounts – with limited withdrawals

1.5% Virgin Money – minimum deposit £1; apply and access online; maximum of two penalty-free withdrawals per year.

Notice accounts

1.9% Charter Savings Bank 95 Day Notice – minimum deposit £1,000; no early access; withdrawals subject to 95 days’ notice.

1.82% Secure Trust Bank 90 Day Notice – minimum deposit £1,000; no early access; maximum of three withdrawals per year subject to 90 days’ notice.

1.61% Charter Savings Bank 60 Day Notice – minimum deposit £1,000; no early access; withdrawals subject to 60 days’ notice.

1.6% Secure Trust Bank 60 Day Notice – minimum deposit £1,000; maximum of three withdrawals per year subject to 60 days’ notice.

One-year fixed term bonds

2.20% BLME – minimum deposit £1,000; apply by post; sharia bank so rate is expected profit rate.

2% Birmingham Midshires – minimum deposit £1; apply online.

Two-year fixed term bonds

2.45% Gatehouse Bank – minimum deposit £1,000; apply online; sharia bank so rate is expected profit rate.

2.28% Oaknorth – minimum deposit £1,000; apply online.

Three-year fixed term bonds

2.5% Al Rayan Bank – minimum deposit £1,000; apply in branch, by post, online or by phone; sharia bank so rate is expected profit rate.

2.4% Aldermore – minimum deposit £1,000; apply online.

Five-year fixed term bonds

2.75% Gatehouse Bank – minimum deposit £10,000; apply by online; sharia bank so rate is expected profit rate.

2.59% Vanquis Bank Savings – minimum deposit £1,000; apply online.

Regular savings accounts

Nationwide Flex Regular: 5% – maximum deposit £250 a month; must have a Nationwide current account and have paid at least £750 per month for at least the last three months or who have switched to Nationwide in the last four months. The account reverts to an instant access account after 12 months.

First Direct Regular Saver: 5% – minimum deposit £25 a month, maximum deposit £300 a month; must have a First Direct 1st Account; account reverts to the Savings Account or Everyday e-Saver after 12 months.

Marks & Spencer Bank Monthly Saver: 5% – minimum deposit £25 a month, maximum deposit £250 a month; must have an M&S current account; the account reverts to the Everyday Savings Account or Current Account after the first 12 months.

Easy Access cash ISAs

1.5% Coventry Building Society – minimum deposit £1; apply online; includes a bonus of 0.35% until 21 July 2020.

1.45% Virgin Money – minimum deposit £1; apply and access online; maximum of two withdrawals per year.

1.44% Oaknorth – minimum deposit £1,000; apply online.

1.44% Tesco Bank – minimum deposit £1; apply and access online or by phone; rate includes 0.79% bonus for the first 12 months.

One-year fixed term cash ISAs

1.8% Kingdom Bank – minimum deposit £2,000; apply by post; transfers out wihtin the term are subject to a penalty charge equivalent to 0.5% of the amount transferred.

1.75% Charter Savings Bank – minimum deposit £1,000; apply online; withdrawals allowed subject to 150 days’ loss of interest.

Two-year fixed term cash ISAs

1.95% Charter Savings Bank – minimum deposit £1,000; apply online; withdrawals allowed subject to 180 days’ loss of interest.

1.91% Shawbrook Bank – minimum deposit £1,000; apply online; access on closure only subject to 180 days’ loss of interest.

Three-year fixed term cash ISAs

2.05% Charter Savings Bank – minimum deposit £1,000; apply online; withdrawals allowed subject to 210 days’ loss of interest.

1.96% Shawbrook Bank – minimum deposit £1,000; apply online; withdrawals allowed subject to 270 days’ loss of interest.

Five-year fixed term cash ISAs

2.3% Coventry Building Society – minimum deposit £1; apply in branch, online, by post or by phone; withdrawals allowed subject to 180 days’ loss of interest.

2.13% Shawbrook Bank – minimum deposit £1,000; apply online; withdrawals allowed subject to 360 days’ loss of interest.

“Sharia providers hold strong”

A number of top-paying fixed term accounts have fallen by the wayside over the last few weeks, but sharia fixed term accounts have held firm and even improved in some cases.

Tom Adams, head of research at independent savings advice site, Savings Champion, says: “Sharia fixed term accounts work slightly differently to standard fixed rate bonds in that they pay an expected profit rate rather than interest so that they comply with Islamic law – but are available to any saver, regardless of religion or culture.

“Sharia compliant accounts are very much a fixture in today’s savings market but there is still some confusion as to how they work and how they differ to other types of savings accounts.

“If, as a result of this confusion, savers are not taking advantage of these accounts, they could be missing out on vital returns, as the accounts pay some of the very best rates in the cash savings market at the present time.

“As other providers have pulled back from the top of the best buy tables, Sharia providers like BLME, Al Rayan Bank and Gatehouse Bank have all improved rates, in some cases leading to a significant difference in returns on offer. So, for savers it may be worth looking at these accounts in more detail in the ongoing quest for the best possible returns”.

 

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