Leaving your cash languishing in a low-paying savings or current account means you could be missing out on valuable interest from higher rates.
Given the lingering effects of the cost-of-living crisis, inflation forecast to rise again later this year, and the Bank of England (BoE) base rate finally being cut from 5.25% to 5%, it’s more important than ever to review your savings and make every penny count.
Savings interest rates had been rising off the back of 14 consecutive BoE base rate hikes before the bank paused its rate-hiking cycle, then made a cut last month for the first time in four years.
Anna Bowes, co-founder of Savings Champion, said: “As expected, even the best buy savings rates have fallen since the Bank of England base rate was cut on 1 August. The good news, though, is that with inflation remaining near to its target of 2% (it was 2.2% in the 12 months to July 2024), there are hundreds of savings accounts available that are still inflation-busting!
“Rates peaked in August 2023 when the top one-year bond was 6.2% but, as inflation was 6.7% at that time, the interest rates on offer today are actually higher [than] a year ago, after taking the current rate of inflation into account. So don’t let your cash languish – review, ditch, switch and perhaps fix!”
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Below, Savings Champion reveals the best buys across easy-access, notice, fixed rate and ISA cash accounts:
EASY-ACCESS ACCOUNTS
4.85% Raisin Limited Edition Easy Access (provided by GB Bank) – minimum deposit £5,000. Apply and access online. Available exclusively through the Raisin UK platform via the partner GB Bank. GB Bank is covered by the Financial Services Compensation Scheme (FSCS), so funds deposited are protected up to £85,000.
4.85% Cahoot Simple Saver (Issue 4) – minimum deposit £1. Apply and access online. This is a 12-month variable-rate account. On maturity, the money will be transferred to a Cahoot Savings Account available at the time.
4.8% Cynergy Bank Online Easy Access Account (Issue 80) – minimum deposit £1. Apply and access online. Rate includes a 1.05% bonus for the first 12 months.
4.8% Chorley Building Society Single Access Saver Account – minimum deposit £1,000. Apply and access online, by post or in branch. A maximum of one easy-access withdrawal is allowed each account year. Additional withdrawals result in the rate reducing to the equivalent of the provider’s instant-access account, currently paying 2.4% AER, for the remainder of the account year.
4.79% Oxbury Easy Access Account Special Edition 1 – minimum deposit £25,000. Apply and access online.
NOTICE ACCOUNTS
5.5% Prosper/Santander International 365 Day Notice Tracker (provided by Santander International) – minimum deposit £20,000. Withdrawals are subject to 365 days’ notice; no earlier access is allowed. Rate tracks the BoE base rate. The account is available exclusively through the Prosper app, powered by the Akoni cash savings platform, and provided by Santander International (covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Santander International will also count towards this limit).
5.35% Prosper/Santander International 185 Day Notice Tracker (Provided by Santander International) – minimum deposit £20,000. Withdrawals are subject to 185 days’ notice; no earlier access is allowed. Rate tracks the BoE base rate. The account is available exclusively through the Prosper app, powered by the Akoni cash savings platform, and provided by Santander International. Santander International is covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Santander International will also count towards this limit.
5.27% Prosper/Santander International 90 Day Notice Tracker (Provided by Santander International) – minimum deposit £20,000. Withdrawals are subject to 90 days’ notice; no earlier access is allowed. Rate tracks the BoE base rate. The account is available exclusively through the Prosper app, powered by the Akoni cash savings platform, and provided by Santander International. Santander International is covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Santander International will also count towards this limit.
5.25% Investec 90 Day Notice Saver – minimum deposit £5,000. Apply and access online. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed.
5.13% Oxbury 90 Day Notice Base Rate Tracker (Issue 3) Saver – minimum deposit £1,000. Apply and access online. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed. This account tracks the BoE base rate plus or minus a margin.
ONE-YEAR FIXED TERM BONDS
5.05% Raisin/Mizrahi Tefahot Bank Ltd 12 Month Fixed Term (provided by Mizrahi Tefahot Bank Ltd) – minimum deposit £1,000. Apply online. No access within the term. Available through the Raisin UK platform via the partner bank Mizrahi Tefahot Bank Ltd, which is covered by the FSCS, so funds deposited are protected up to £85,000.
5.05% Union Bank of India Fixed Rate Deposit 1 Year – minimum deposit £1,000. Apply in branch or by post. No access within the term.
5% The Access Bank Sensible Savings 2 Year Fixed Rate Bond – minimum deposit £5,000. Apply online or by post. No access within the term.
TWO-YEAR FIXED TERM BONDS
4.79% Raisin/Ziraat Bank 2 Year Fixed Term (Provided by Ziraat Bank) – minimum deposit £1,000. Apply online. No access within the term. Available through the Raisin UK platform via the partner bank Mizrahi Tefahot Bank Ltd, which is covered by the FSCS, so funds deposited are protected up to £85,000.
4.75% Union Bank of India Fixed Rate Deposit 2 Year – minimum deposit £1,000. Apply in branch or by post. No access within the term.
4.71% Cynergy Bank 2 Year Fixed Rate Bond – minimum deposit £1,000. Apply online. No access within the term.
THREE-YEAR FIXED TERM BONDS
4.55% Cynergy Bank 3 Year Fixed Rate Bond (Online only) – minimum deposit £1,000. Apply online. No access within the term.
4.51% Raisin/Ziraat Bank 3 Year Fixed Term (Provided by Ziraat Bank) – minimum deposit £1,000. Apply online. No access within the term. Available through the Raisin UK platform via the partner Ziraat Bank Ltd, which is covered by the FSCS, so funds deposited are protected up to £85,000.
4.51% HTB 3 Year Bond (Issue 68) – minimum deposit £1. Apply online. No access within the term.
FIVE-YEAR FIXED TERM BONDS
4.35% Cynergy Bank 5 Years Fixed Rate Bond – minimum deposit £1,000. Apply online. No access within the term.
4.35% State Bank of India Green Fixed Deposit Five Year – minimum deposit £10,000. Apply in branch or by post. No access within the term. Must hold or open a State Bank of India current account or savings account for the interest to be paid to; it cannot be added to the bond.
4.33% Birmingham Bank 5 Year Fixed Rate Bond (Issue 6) – minimum deposit £5,000. Apply online. No access within the term.
VARIABLE-RATE CASH ISAS
5.2% Trading 121 Cash ISA – minimum deposit £1. Apply and access online and via mobile app. Transfers of existing ISA funds are allowed. Trading 212 uses a broad range of banks for its cash ISA, and the proportion of money held with each bank can vary over time. The three banks in question are Barclays, NatWest and JPMorgan Chase. Please contact Trading 212 directly for any specific questions on where your money is held.
5.05% Progressive BS 1 Year Double Access Cash ISA Account (Issue 3) – minimum deposit £1. Apply and access in branch or by post. Easy-access. Two penalty-free withdrawals per tax year. Additional withdrawals are allowed subject to the account reverting to an instant-access cash ISA at a lower rate. Transfers in allowed.
5.01% The Tipton Building Society Single Access ISA (Mobile App Account) – minimum deposit £1,000. Apply and access via online banking app. Withdrawals are limited to one each calendar year. After your one withdrawal, 60 days’ interest will be lost on the amount withdrawn.
5% Principality BS Online Bonus 5 Access Cash ISA – minimum deposit £1. Apply and access online. Easy-access. Five withdrawals permitted each tax year, but the ISA can be closed or transferred at any time. Rate includes a variable 1.45% bonus for the first 12 months. Transfers in are allowed.
5% Newcastle Building Society Single Access ISA (Issue 1) – minimum deposit £1. Apply and access in branch and online. One withdrawal permitted each anniversary year. Interest rate will drop to 2.9% upon making two or more withdrawals. Transfers in from other providers are accepted.
ONE-YEAR FIXED TERM CASH ISAS
4.75% Virgin Money 1 Year Fixed Rate Cash ISA Exclusive (Issue 14) – minimum deposit £1. Apply online or in branch. You need to have a current account with Virgin Money that was opened on or after 4 December 2019, or you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B. The maturity date is 29 August 2025. Full and partial withdrawals are permitted during the term, but you will be charged 60 days’ interest on the amount taken out.
4.66% Cynergy Bank 1 year Fixed Rate Cash ISA – minimum deposit £500. Apply online. Access on closure, subject to a 180-day interest penalty. Transfers in are accepted.
4.63% Kent Reliance One Year Fixed Rate Cash ISA (Issue 103) – minimum deposit £1,000. Apply online or in branch. Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed within 30 days of account opening.
TWO-YEAR FIXED TERM CASH ISAS
4.57% Cynergy Bank Two Year Fixed Rate Cash ISA (Issue 4) – minimum deposit £500. Apply online. Access on closure, subject to a 180-day interest penalty. Transfers in are accepted.
4.45% United Trust Bank Cash ISA 2 Year Bond – minimum deposit £5,000. Apply online. Withdrawals are allowed, subject to a withdrawal charge equivalent to 180 days’ interest. Interest can be withdrawn annually without penalty. Transfers in are allowed.
4.45% Loughborough Building Society Two Year Fixed Rate Cash ISA (Issue 39) – minimum deposit £5,000. Apply online in branch by post or mobile banking app. Access on closure only, subject to 180 days’ loss of interest. Maturity date is 30 September 2026. Transfers in are accepted.
THREE-YEAR FIXED TERM CASH ISAS
4.35% Cynergy Bank 3 Year Fixed Rate Cash ISA – minimum deposit £500. Apply online. Access on closure, subject to a 180-day interest penalty. Transfers in are accepted.
4.31% Beehive Money Three Year Fixed Rate ISA (Issue 5) – minimum deposit £500. Apply online. The maturity date is 14 October 2027. Transfers out allowed subject to 270 days’ interest charge. Transfers in are allowed in full only.
4.31% UBL UK 3 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online, in branch by post or mobile banking app. Access on closure only, subject to 270 days’ loss of interest. Transfers in are accepted.
FIVE-YEAR FIXED TERM CASH ISAS
4.1% UBL UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online in branch, by post or mobile banking app. Access on closure or full transfer out only, subject to 365 days’ loss of interest. Transfers in are allowed.
4.06% Beehive Money Five Year Fixed ISA (Issue 6)– minimum deposit £500. Apply online. Access on closure only, subject to a 365-day interest charge. The maturity date is 14 October 2029. Transfers in are allowed in full only.
4.05% Hinckley & Rugby Building Society 5 Year Fixed Rate Cash ISA (Issue 7) – minimum deposit £500. Apply online. Apply by post or in branch. Withdrawals are allowed, subject to a withdrawal charge equivalent to 365 days’ interest. Transfers in are not allowed.
Rates correct as of 3 September 2024
