The best savings rates on the market, as new deals offer savers more interest – iNews

by MoneySaverExpert

Savers are being encouraged to review their accounts as new deals come on to the market.

Easy access savings rates are now up 30 per cent and one-year fixed are up 70 per cent when compared to the start of 2022.

There are several one-year fixed rates with interest rates of 2.5 per cent at the moment, while easy-access accounts are also topping 1.55 per cent.

Rachel Springall of Moneyfacts said: “The savings market is moving in a positive direction as interest rate rises fuel the top-rate tables, thanks to competition from challenger banks and building societies.

“If savers have their cash stored with a high-street bank they are unlikely to have benefited from the back-to-back base rate rises, so looking at the more unfamiliar brands is wise if they want to acquire some of the best rates on the market.

“In the months to come, it would be wise for savers to review their accounts, particularly if they hold an account that is no longer on sale, as they could be better off switching.”

i, with help from Moneyfacts and Savings Guru, takes a look at some of the best offers currently available.

Best one-year fixed accounts (by AER)

  • DF Capital – 2.5%
  • Bank of London and The Middle East – 2.5%
  • Al Rayan Bank – 2.47%
  • Tesco Bank – 2.41%
  • Gatehouse Bank – 2.4%
  • Paragon Bank – 2.4%
  • Al Rayan Bank – 2.4%
  • United Trust Bank – 2.4%

Best two-year fixed accounts

  • Al Rayan Bank – 2.8%
  • Zopa – 2.77%
  • Kent Reliance – 2.76%
  • United Trust Bank – 2.75%
  • Charter Savings Bank – 2.74%
  • Tesco Bank – 2.71%
  • Cynergy Bank – 2.68%
  • Allica Bank – 2.68%

Best three-year fixed accounts

  • Al Rayan Bank – 2.85%
  • Zopa – 2.81%
  • Charter Savings Bank – 2.8%
  • United Trust Bank – 2.8%
  • Cynergy Bank – 2.8%
  • Close Brothers Savings – 2.8%
  • Tesco Bank – 2.76%
  • Ikano Bank – 2.75%
  • PCF Bank – 2.75%

Best easy accounts

  • Virgin Money – 1.56%
  • Chase – 1.50%
  • Yorkshire Building Society – 1.33%
  • Al Rayan Bank – 1.31%
  • Ford Money – 1.3%
  • Gatehouse Bank – 1.3%
  • Tandem Bank – 1.25%
  • Atom Bank – 1.25%
  • Paragon Bank – 1.25%

Best buys for Cash ISA (variable)

  • Paragon Bank – 1.2%
  • Marcus by Goldman Sachs – 1.15%
  • SAGA – 1.15%
  • Aldermore – 1.15%
  • Cynergy Bank – 1.05%

Best buy for Cash ISA (fixed one year)

  • Gatehouse Bank – 1.9%
  • Virgin Money – 1.76%
  • UBL UK – 1.76%
  • Punjab National Bank (International) Limited – 1.75%
  • Charter Savings Bank – 1.75%
  • Virgin Money – 1.7%

More from Saving and Banking

The most popular accounts with consumers

At present, one- and two-year fixed savings accounts are proving popular with consumers, but experts have advised that those who can afford to should have multiple accounts to make the most of the current rates.

James Blower, founder of the Savings Guru, said: “The savings market is very buoyant at the moment with rates increasing sharply since the turn of the year.

“We’ve seen a move out of easy access rates in to fixed rates as result, with net inflows in to fixed rates of £445m in March and £868m in April, after years of outflows.

“I wouldn’t be surprised to see £1bn of inflows in May when the Bank of England announce their next stats.

“On the Savings Guru, one-year and two-year fixed rates were the most popular products search for by savers, with easy access relegated to third spot.

“It’s definitely a good time to be a saver with rates nudging upwards on a weekly basis.

“There’s enough of a difference between the best easy access and fixed rates to justify savers locking away their money and one- and two-year fixed offer the best value at the moment, so I wouldn’t recommend locking away longer than this.”

Ms Springall added: “Savers may want to split their money between fixed and variable accounts to maximise their interest return but also have some of their cash easily accessible in case of an emergency.”

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