For this week’s guide, Anna Bowes, savings expert from The Private Office, reviews the best offers on the savings market…
Savers are finally receiveting a bit of respite after several weeks of cuts.
Regular savings accounts are paying some of the best rates, and three of the top five now give you almost unlimited access to your money.
These accounts normally come with restrictions on the amount you can deposit and how often you can access your cash.
Progressive Building Society launched the Online Regular Rainy Day Saver Account (Issue 4), which pays 7% (variable) on deposits of £300 a month and allows you to build one withdrawal per day.
Scottish Building Society has also launched a 12-month Regular Saver account paying a variable rate of 6.5% on deposits of up to £250 a month.
Withdrawals are allowed as long as £50 remains in the account, but the account can only be opened in branch or by post.
“Regular savings accounts are a good option, especially for those who don’t have a lump sum to invest and they are one of the best ways to receive you into the savings habit,” Bowes states.
“Deposit the amount you can afford the day after you are paid, and it becomes like another bill – but one that you can benefit from in the future.”
Let’s take a view at the rest of the market…
Easy access
While there has not been a new challenger to the top of the tables, Shawbrook Bank has launched an unrestricted straightforward access account paying 4.31% AER, which includes a repaired bonus of 2.31% for 12 months.
“That is the only action we’ve seen, but at least there have been no rate cuts,” Bowes states.
Easy access cash ISAs
The Tipton & Coseley Building Society has launched an unrestricted straightforward access cash ISA paying 4.3%.
Although not the top-paying straightforward access ISA, it is the best rate for those who do not want to be restricted by how many withdrawals they can build.
It can only be opened via a mobile app, which may not suit everyone’s necessarys.
If you want an account that can be opened in a different way, Skipton Building Society’s Cash ISA Base Rate Tracker Issue 9 has a rate of 4.16% AER.
“While you can build as many straightforward access withdrawals as you like, the account has a 12-month term, after which your cash will be relocated into another straightforward access ISA that does not track the base rate and will likely pay a lower rate,” Bowes states.
Fixed rate bonds
In our one-year table, the market-leading accounts have been withdrawn and replaced by a slightly lower rate.
OakNorth Bank launched a one-year bond paying 4.43% – down from its previous issue paying 4.45%. This tiny adjustment means the bank is still in our top five but has dropped down into joint 5th.
The good news is that LHV, an app-only provider, has launched a one-year bond paying 4.45% to join First Save at the top, meaning savers still have two market-leading options to choose from.
Fixed rate cash ISAs
Tembo is holding quick at the top of the one-year table with its app-only ISA, paying 4.27%.
Meanwhile, Gatehoutilize Bank has launched an ISA paying 4.21% – putting it into second place. NatWest Bank’s 4.2% offering is in third place, a good rate with a well-known bank.
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