Emily Ramsey partners with NatWest to encourage saving
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The base rate more than doubled yesterday and banks have been swift to pick up the interest on debts owed to them, however, savers are warned they may be more sluggish when applying the uplift to savings accounts. Regardless, there are a variety of deals on offer perfect to stow away one’s Christmas cash and the start the new year off on a financially sound foot.
With the range of accounts on offer, all with varying degrees of conditions, accessibility and timelines, it’s important to consider what one is actually saving for before they put their money anywhere.
Saving for longer-term goals such as a house deposit or retirement could be better off in a fixed-account as one won’t be wanting to use the money soon and these often offer better interest rates than easy access accounts.
Likewise, considering one’s current financial situation is also vital as saving commitments, such as those when opening a regular savings account, will require them to put away specific amounts each month.
If it appears unlikely that they will be able to afford this amount every month, or would prefer to put away a lump sum rather than monthly instalments, these types of accounts will simply not work.
Self-proclaimed “money-saving geek” and author of finance website Be Clever With Your Cash, Andy Webb compiled one of the most comprehensive lists of the best interest rates currently on offer for savers in December 2021.
Regular Savings accounts
Regular or monthly savers are different to normal easy access accounts as there are specific conditions when it comes to depositing money into them.
Most of these accounts will have an upper limit on how much one can deposit each month and are usually ideal for those on fixed salaries and only want to save a certain amount each month.
NatWest Digital Regular Save – 3.04 percent AER
Nationwide Flex Regular Saver – two percent AER
TSB Monthly Saver – two percent AER (fixed rate)
Coventry Building Society Regular Saver- 1.05 percent AER
Other regular saver accounts offering one percent AER
Club Lloyds Monthly Saver
First Direct Regular Saver
HSBC Regular Saver
Nationwide Start to Save
Principality Building Society
Fixed savings accounts
These types of accounts generally limit both how much one can save, when they can deposit the money and when they can retrieve it as well.
It is generally suggested for those that have a large lump sum with no plans for it as these accounts usually offer better interest rates.
Gatehouse one year fix – 1.41 percent AER
Masthaven one year fix – 1.39 percent AER
Zopa one year fix – 1.37 percent AER
Investec one year fix – 1.36 percent AER
In order to access the savings in this type of account, one will need to request for it to be released in a certain time period.
Because of this, it is recommended not to keep emergency funds or money one may imminently need in these types of accounts although it can offer some middle ground between easy access and fixed term accounts.
Secure Trust Bank 120-days notice – 1.10 percent
Close Brothers 95-days notice – 1.05 percent
Investec via Raisin 32-days notice – 0.8 percent
Easy access accounts
These are undeniably the most popular savings account as one will usually not be penalised for taking money out and don’t have a small limit on how much or when they can deposit more money like with a regular saver account.
However, interest rates for these accounts are notoriously poor although they have seen a bit of an uptick in recent months.
Investec Online Flexi Saver – 0.71 percent AER
Cynergy Bank – 0.7 percent AER
Chip – 0.7 percent AER
Tesco Bank – 0.69 percent AER
Cash ISAs offer tax-free interest on all savings although it’s important to pay attention to the £20,000 ISA limit as it applies across all of one’s ISAs in a single financial year.
Shawbrook Bank – 0.67 percent
Cynergy Bank – 0.65 percent AER
Marcus – 0.6 percent AER
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