Top High Interest Savings Accounts

With interest rates at an all time low, savers are finding it difficult to find a savings account which offers them a good return on their money. The market is definitely tough at the moment but so far in 2017 we’ve seen interest rates begin to slowly rise on savings accounts despite the historic low interest rate of 0.25%. In this article we take a look at some great offers on the market including the Current Accounts for savers, ‘Easy To Access’ Savings Accounts and Fixed Bonds.

 

Top Current Accounts For Savers

TSB’s Classic Plus

The TSB Classic Plus is one of the best current accounts available at the moment. It offers 3% on balances of up to £1,500. It also offers up to £10 per month cashback based on paying at least 2 direct debits per month from the account and making 20 debit card transactions per month. These cashback offers are available until 31st December 2018.

The downside is that customers wanting to use the account are required to pay in a minimum of £500 each month to benefit from the rate. They also need to register for the online banking function and opt for paperless statements. A max of £85,000 is protected via the government’s savings guarantee.

Nationwide’s FlexDirect

FlexDirect from Nationwide also pays out 5% interest for account holders. The rate is applied for all savings held in the account, up to a maximum of £2,500. The downside, however, is that anyone wishing to use the account is required to pay in a minimum of £1,000 each month to maintain the rate. And after just twelve months Nationwide actually decreases the interest to just 1%.

Nationwide offer a “refer a friend scheme” which nets both you and your friend a £100 bonus if they switch to this account. You can refer up to 10 friends per year, earning you a nice £1,000 bonus if you’re a persuasive type. The account offers an interest-free overdraft for 12-mnths (reverts to 50p per day for the overdraft after 12-months). A max of £85,000 is protected via the government’s savings guarantee.

Santander 123

The Santander 123 account offers 1.5% interest on balances of up to and including £20,000 making it an attractive option for bigger savers. The account offers cashback of 3% on bills such as your mobile phone, broadband, digital TV package and home phone, 2% on home energy bills, 1% on home water, 1% on council tax and 1% on mortgages with Santander. To qualify for this and the interest rates you must pay in at least £500 per month and have 2 active, monthly direct debits on your account.

A max of £85,000 is protected via the government’s savings guarantee. Note Santander owns Cahoot so do not hold more than £85,000 in combined savings in these 2 banks.

 

Easy Access Savings Accounts

Tesco Bank

The Tesco Bank Internet Saver product offers 1.25% interest including a 0.7% fixed bonus for 12 months. The minimum balance is only £1 and you can make as many withdrawals as you wish. The interest rate will plummet after 12 months which means the account may become uncompetitive at this time so be prepared to switch again. A max of £85,000 is protected via the government’s savings guarantee.

Shawbrook Bank

Shawbrooks Easy Access Account offers 1.25% interest on balances of £1,000 and above (the maximum balance is £85,000). You can make as many withdrawals as you wish but there is a minimum withdrawal of £500. This account is managed online or via telephone. Shawbrook has no highstreet branches. A max of £85,000 is protected via the government’s savings guarantee.

Ford Money

A new player in the savings market in the UK, Ford Money offers a savings rate of 1.22% with unlimited withdrawals and a minimum balance requirement of only £1. Again the account must be opened and managed online. There are no high street branches. A max of £85,000 is protected via the government’s savings guarantee.

 

Fixed Savings Bonds

1 Year

Atom Bank

Atom Bank offers a fixed interest rate of 1.8% on a 12 month Fixed Deposit Account. Savers can deposit an amount between £50 and £100,000 and access is exclusively via their mobile app. Withdrawals are not permitted within the 12 month period and interest is paid monthly or annually. A max of £85,000 is protected via the government’s savings guarantee.

Hodge Bank

Hodge Bank offers a fixed interest rate of 1.75% on a 12 month Fixed Deposit Account. Savers can deposit any amount between £1,000 and £1,000,000 and access is by post and telephone. Withdrawals are not permitted within the 12 month period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

Charter Savings Bank

Charter Savings Bank offers a fixed interest rate of 1.72% on a 12 month Fixed Deposit Account. Savers can deposit an amount between £1,000 and £250,000 and access is exclusively via their website. Withdrawals are not permitted within the 12 month period and interest is paid monthly or annually. A max of £85,000 is protected via the government’s savings guarantee.

 

3 Year

RCI Bank

RCI Bank offers a fixed interest rate of 2.31% on a 36 month Fixed Deposit Account. Savers can deposit an amount between £1,000 and £1,000,000 and access is exclusively via the internet. Withdrawals are not permitted within the 12 month period and interest is paid annually. RCI is a French bank and 100,000 Euros is protected by the French governments savings guarantee.

Vanquis Bank

Vanquis Bank offers a fixed interest rate of 2.3% on a 3 year Fixed Deposit Account. Savers can deposit an amount between £1,000 and £250,000 and access is by post, phone or online. Withdrawals are not permitted within the 3 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

Masthaven

Masthaven offers a fixed interest rate of 2.21% on a 3 year Fixed Deposit Account. Savers can deposit an amount between £500 and £250,000 and access is online only. Withdrawals are not permitted within the 3 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

Hodge Bank

Hodge Bank offers a fixed interest rate of 2.2% on a 3 year Fixed Deposit Account. Savers can deposit an amount between £1,000 and £1m and access is via phone or post. Withdrawals are not permitted within the 3 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

 

5 Year

Secure Trust Bank

Secure Trust Bank offers a fixed interest rate of 2.75% on a 5 year Fixed Deposit Account. Savers can deposit an amount between £1,000 and £1m and access is by post or telephone. Withdrawals are not permitted within the 5 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

Vanquis Bank Savings

Vanquis Bank Savings offers a fixed interest rate of 2.65% on a 5 year Fixed Deposit Account. Savers can deposit an amount between £1,000 and £250,000 and access is by post or telephone. Withdrawals are not permitted within the 5 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

Hodge Bank

Hodge Bank offers a fixed interest rate of 2.5% on a 5 year Fixed Deposit Account. Savers can deposit an amount between £1,000 and £1m and access is via telephone or post. Withdrawals are not permitted within the 5 year period and interest is paid annually. A max of £85,000 is protected via the government’s savings guarantee.

 

 

Disclaimer: TheMoneyDaily’s service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions and can introduce you to comparison services and provide impartial information and guides. Where appropriate, we may introduce FCA authorised partners who can provide services relating to financial products.