With the Bank of England base rate cut to 4.75% last week, savers may wish to move quickly to secure attractive returns on their funds.
The average savings rate for a no-notice account stands at 2.98%, compared to 3.15% last year, according to Moneyfacts.
Using data from the finance comparison site, here are the best savings rates across the market.
Easy-access accounts
As easy-access rates fall, Monument is at the top of the charts with its 4.87% AER monthly rate on the Raisin UK – Easy Access Account. The minimum deposit is £1,000 and it is available through the Raisin app and online. It comes with no penalty for withdrawing your cash, but you must take out a minimum of £500 at a time.
In second place is the 4.85% AER deal on the Saver Reward from the app-only provider Atom Bank. The rate pays monthly and no minimum amount is needed to get started, while you need to pick a nominated account to add to your funds. When you withdraw from the account, a 3.25% AER rate is applied for that month.
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Principality Building Society offers a minimal £1 deposit to open its Online Bonus Triple Access Issue 4 account, which matches the Atom Bank offer, but pays yearly. The account is only available online and you have three penalty-free withdrawals per year. Transactions are required through a nominated account and a 1.5% bonus is available in a 12-month period.
Vanquis also has a 4.85% AER offer available either monthly or on anniversary, but you need at least £1,000 to open the account. There are no restrictions on withdrawals or further additions to the pot.
Best fixed rate bonds
Leading the best fixed rate bond market is Ahli United Bank’s Raisin UK – 1 Year Fixed Term Deposit, which is available to manage online and Raisin’s UK.
This pays an expected profit rate of 4.8% AER on maturity of the account and needs a minimum of £1,000 to open. This amount cannot be added to and no withdrawals with the Sharia savings account are permitted.
Due to a drop in fixed rate savings accounts, SmartSave dominates the top two-, three- and five-year options.
This is thanks to 4.61% AER, 4.55% AER and 4.48% AER rates respectively. All accounts require a sizeable £10,000 in the account to open, which can only be done online, and you do not have early access to your funds.
Also, there is a two-week window in which you can add to your funds.
Notice accounts
In the notice account market, GB Bank’s Raisin UK – 7 Day Notice Account is offering the best deal at 4.85% AER. This is available upon closing the account and a £1,000 deposit is needed for the account to be opened. It’s worth considering that this account does not accept further funds added and any early access needs to be a full balance withdrawal.
The next best rate is the Charter Savings Bank account, which is available in the 60-day market. The 60 Day Notice – Issue 3 has a 5.06% AER rate paid either monthly or on anniversary and needs £5,000 deposited to open.
Bank of London and The Middle East offers the top rate for 90-day notice accounts, with an expected profit rate of 5.15% AER, which is paid quarterly.
The 90 Day Notice Account (Issue 6) requires a £10,000 minimum deposit through a nominated account and withdrawals need to be at least £1,000. The account can be opened online, where it is then managed.
