Best savings accounts this week as two banks offer 5.20 per cent interest on easy access savings

Tens of millions of Britons are letting their savings be eroded by inflation, as they continue to keep money in low or no-interest-rate savings accounts.Some eight in ten Britons - equating to around 43 million - keep at least some of their savings in their current account, rather than seeking more competitive returns, according to research by InvestEngine.However, there are inflation-beating options out there, after UK inflation increased by 3.2 per cent in the year to March 2024.Despite fixed rates typically offering a greater return in exchange for locking one's money away, there are currently two easy access savings accounts paying 5.20 per cent.These rates are offered on cahoot's Sunny Day Saver, on savings between £1 and £3,000, while Ulster Bank pays 5.20 per cent on balances of £5,000 and over.SmartSave and Allica Bank are paying 5.17 per cent via their fixed rate bonds, but both have a minimum investment of £10,000. The best buy for cash ISAs, fixed for one year, is currently Virgin Money, paying 5.05 per cent on a minimum investment of £1.Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The fluctuation of rates across the top rate tables should encourage savers to review and switch their account if they are not being rewarded for their loyalty.”Fixed rate savings accounts“There has been a notable number of providers moving in and out of the top rate tables since the beginning of last week, one of the most notable changes in our Moneyfacts Best Buys was SmartSave and Alica Bank’s market-leading one-year fixed bonds that pay 5.17 per cent AER / gross," Springall said."There was lots of activity towards the top of the one-year bond chart, OakNorth Bank dropped out of the top ten, as did MBNA, but Beehive Money and Hodge Bank managed to keep a place after slight rate cuts. "However, jumping into the tables were Atom Bank, Hampshire Trust Bank and Al Rayan Bank, which all pay over five per cent.For savers who are happy to fix for longer, there has been a shuffle within the two-year fixed rate bond table, Springall said."SmartSave now leads at 5.08 per cent AER / gross, but a week ago the top rate was higher at 5.10 per cent from iFAST Global Bank, which got reduced and fell out of the top 10. "Another boost to this area of the market came from RCI Bank UK and Atom Bank which increased the rates on their two-year fixed bonds, and Hampshire Trust Bank launched a new deal – all of which sit in the top 10.Best one-year fixed savings accounts:SmartSave 5.17 per cent AER/grossAllica Bank 5.17 per cent AER/grossClose Brothers Savings 5.16 per cent AER/grossAtom Bank 5.15 per cent AER/grossHampshire Trust Bank 5.10 per cent AER/grossHodge Bank 5.10 per cent AER/grossZenith Bank (UK) Ltd 5.10 per cent AER/grossAl Rayan Bank 5.10 per cent AER/5.01 per cent grossBeehive Money 5.10 per cent AER/grossTandem Bank 5.07 per cent AER/grossEasy access savings accountsThere was "little movement" in the easy access top rate tables since last week, however, Cynergy Bank and Post Office Money did cut their rates, having been paying more than five per cent.Best easy access savings accounts without bonus: cahoot 5.20 per cent AER/grossUlster Bank 5.20 per cent AER/grossMonument Bank 5.01 per cent AER/4.90 per cent grossClose Brothers Savings 5.00 per cent AER/grossKent Reliance 4.96 per cent AER/grossOxbury Bank 4.94 per cent AER/4.83 per cent grossCharter Savings Bank 4.93 per cent AER/grossWealthify 4.91 per cent AER/4.80 per cent grossHampshire Trust Bank 4.90 per cent AER/grossSecure Trust Bank 4.90 per cent AER/4.79 per cent grossBest easy access savings accounts with bonus:Principality Building Society 5.00 per cent AER/grossCynergy Bank 5.00 per cent AER/grossTesco Bank 4.81 per cent AER/grossPrincipality Building Society 4.80 per cent AER/grossMarcus by Goldman Sachs 4.75 per cent AER/4.65 per cent grossSAGA 4.75 per cent AER/4.65 per cent grossPost Office Money 4.75 per cent AER/grossSainsbury's Bank 4.40 per cent AER/grossPost Office Money 4.10 per cent AER/grossTSB 2.92 per cent AER/2.89 per cent grossRegular savings accountsPrincipality Building Society has launched a new regular savings account, offering six per cent AER/gross variable, fixed for one year.The Co-operative Bank 7.00 per cent AER/grossNationwide Building Society 6.50 per cent AER/grossNatWest 6.17 per cent AER/grossRoyal Bank of Scotland 6.17 per cent AER/6.00 per cent grossPrincipality Building Society 6.00 per cent AER/grossWest Brom Building Society 6.00 per cent AER/grossTSB 6.00 per cent AER/grossSaffron BS 5.75 per cent AER/grossPrincipality Building Society 5.50 per cent AER/grossHalifax 5.50 per cent AER/grossLATEST DEVELOPMENTS:Millionaire explains how he grew wealth with an ISASavings alert as Britons unable to to use £20,000 tax-free ISA due to 'lack of disposable income'‘I’ve earned a £30 voucher just by tapping a button’Cash ISAs“Those looking to utilise their ISA allowance will find lots of movement to fixed rate Ca

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Apr 22, 2024 - 23:46

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Best savings accounts this week as two banks offer 5.20 per cent interest on easy access savings

Tens of millions of Britons are letting their savings be eroded by inflation, as they continue to keep money in low or no-interest-rate savings accounts.

Some eight in ten Britons - equating to around 43 million - keep at least some of their savings in their current account, rather than seeking more competitive returns, according to research by InvestEngine.

However, there are inflation-beating options out there, after UK inflation increased by 3.2 per cent in the year to March 2024.

Despite fixed rates typically offering a greater return in exchange for locking one's money away, there are currently two easy access savings accounts paying 5.20 per cent.

These rates are offered on cahoot's Sunny Day Saver, on savings between £1 and £3,000, while Ulster Bank pays 5.20 per cent on balances of £5,000 and over.

SmartSave and Allica Bank are paying 5.17 per cent via their fixed rate bonds, but both have a minimum investment of £10,000.

The best buy for cash ISAs, fixed for one year, is currently Virgin Money, paying 5.05 per cent on a minimum investment of £1.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The fluctuation of rates across the top rate tables should encourage savers to review and switch their account if they are not being rewarded for their loyalty.”

Fixed rate savings accounts

“There has been a notable number of providers moving in and out of the top rate tables since the beginning of last week, one of the most notable changes in our Moneyfacts Best Buys was SmartSave and Alica Bank’s market-leading one-year fixed bonds that pay 5.17 per cent AER / gross," Springall said.

"There was lots of activity towards the top of the one-year bond chart, OakNorth Bank dropped out of the top ten, as did MBNA, but Beehive Money and Hodge Bank managed to keep a place after slight rate cuts.

"However, jumping into the tables were Atom Bank, Hampshire Trust Bank and Al Rayan Bank, which all pay over five per cent.

For savers who are happy to fix for longer, there has been a shuffle within the two-year fixed rate bond table, Springall said.

"SmartSave now leads at 5.08 per cent AER / gross, but a week ago the top rate was higher at 5.10 per cent from iFAST Global Bank, which got reduced and fell out of the top 10.

"Another boost to this area of the market came from RCI Bank UK and Atom Bank which increased the rates on their two-year fixed bonds, and Hampshire Trust Bank launched a new deal – all of which sit in the top 10.

Best one-year fixed savings accounts:

SmartSave 5.17 per cent AER/gross
Allica Bank 5.17 per cent AER/gross
Close Brothers Savings 5.16 per cent AER/gross
Atom Bank 5.15 per cent AER/gross
Hampshire Trust Bank 5.10 per cent AER/gross
Hodge Bank 5.10 per cent AER/gross
Zenith Bank (UK) Ltd 5.10 per cent AER/gross
Al Rayan Bank 5.10 per cent AER/5.01 per cent gross
Beehive Money 5.10 per cent AER/gross
Tandem Bank 5.07 per cent AER/gross

Easy access savings accounts

There was "little movement" in the easy access top rate tables since last week, however, Cynergy Bank and Post Office Money did cut their rates, having been paying more than five per cent.

Best easy access savings accounts without bonus:

cahoot 5.20 per cent AER/gross
Ulster Bank 5.20 per cent AER/gross
Monument Bank 5.01 per cent AER/4.90 per cent gross
Close Brothers Savings 5.00 per cent AER/gross
Kent Reliance 4.96 per cent AER/gross
Oxbury Bank 4.94 per cent AER/4.83 per cent gross
Charter Savings Bank 4.93 per cent AER/gross
Wealthify 4.91 per cent AER/4.80 per cent gross
Hampshire Trust Bank 4.90 per cent AER/gross
Secure Trust Bank 4.90 per cent AER/4.79 per cent gross

Best easy access savings accounts with bonus:

Principality Building Society 5.00 per cent AER/gross
Cynergy Bank 5.00 per cent AER/gross
Tesco Bank 4.81 per cent AER/gross
Principality Building Society 4.80 per cent AER/gross
Marcus by Goldman Sachs 4.75 per cent AER/4.65 per cent gross
SAGA 4.75 per cent AER/4.65 per cent gross
Post Office Money 4.75 per cent AER/gross
Sainsbury's Bank 4.40 per cent AER/gross
Post Office Money 4.10 per cent AER/gross
TSB 2.92 per cent AER/2.89 per cent gross

Regular savings accounts

Principality Building Society has launched a new regular savings account, offering six per cent AER/gross variable, fixed for one year.

The Co-operative Bank 7.00 per cent AER/gross
Nationwide Building Society 6.50 per cent AER/gross
NatWest 6.17 per cent AER/gross
Royal Bank of Scotland 6.17 per cent AER/6.00 per cent gross
Principality Building Society 6.00 per cent AER/gross
West Brom Building Society 6.00 per cent AER/gross
TSB 6.00 per cent AER/gross
Saffron BS 5.75 per cent AER/gross
Principality Building Society 5.50 per cent AER/gross
Halifax 5.50 per cent AER/gross

LATEST DEVELOPMENTS:

Cash ISAs

“Those looking to utilise their ISA allowance will find lots of movement to fixed rate Cash ISAs, with Virgin Money now leading the one-year fixed table at 5.05 per cent AER / gross," Springall said.

"Shawbrook Bank also launched some decent rates across one, two, and three-year fixed terms with its three-year fixed Cash ISA leading the market at 4.40 per cent AER / gross, also joined by OakNorth Bank, which increased its rate by 0.01 per cent."

Best one year fixed rate cash ISAs: