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Scottish Sun
13-05-2025
- Business
- Scottish Sun
The best easy access savings account to make hundreds of pounds – and the one that could trick you out of cash
We reveal the best savings account for cash right now SAVVY SAVER The best easy access savings account to make hundreds of pounds – and the one that could trick you out of cash FINDING the right savings account is tricky - but there's one account that we all need to watch out or it could cost you hundreds of pounds. Personal finance journalist Ruth Jackson-Kirby has been writing about savings for 20 years - here she reveals the four questions to ask yourself before you apply. 3 We reveal the savings accounts we need to ditch - and four questions to ask before applying Credit: Getty Easy access accounts are important. Experts say you should have at least two months' worth of salary saved in case of an emergency and you need to be able to access this cash without paying a fee or comprising the amount of interest you'll earn. However, many of these so-called easy access accounts come with string attached and if you fall for the wrong one it could cost you hundreds of pounds. You need to avoid any account that has limits on how often you can withdraw cash, if the rates drops after a few months or if there are hefty minimum amounts to open an account. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "The easy access accounts with the highest rates come with strings attached. "If they suit your needs, there's nothing to worry about, but you need to go in with your eyes open and check the small print before you apply. "The key is to make these accounts work for you, rather than falling foul of the small print and paying a horrible price." I checked the top 10 best-buy easy access savings accounts and found only two that truly offered easy access to a top interest rate. The rest came with catches. Break the rules and you could lose out on interest. The account worth applying for The good news is you don't have to jump through hoops to get a decent interest rate. There are still accounts out there that are easy-access, it's just important to not get duped by dud ones. Charter Savings Bank's Easy Access account ticks all the boxes. It pays 4.46% with no bonus rate, no linked account, no minimum balance and, best of all, you can access your money as often as you like. For example, if you save £1,000 in this account over the course of 12 months, you'll earn £44.60 in interest. Switch bank accounts for free perks The accounts with traps 3 Some deals seem great until you read the small print Credit: Getty Sidekick is currently leading the way with the highest easy access rate, offering 4.76% through its High Yield Cash Reserve account. Although the account boasts no withdrawal restrictions, savers must maintain a minimum balance of £5,000 to start earning interest. This threshold is, for most, higher than the amount most major banks suggest for an emergency fund, which typically covers three months' worth of essential expenses. Meanwhile, Atom Bank's Instant Saver Reward pays 4.75% but make a withdrawal in any given month and your rate will fall to 2.5%. For example, if you deposit £1,000 and withdraw £100 in January, May, and September, your interest rate will drop to 2.5% for those three months. As a result, you'd earn less interest during those months compared to the usual 4.75%. Over the year, these three withdrawals would cost you roughly £13.18 in lost interest. Monument Bank's Limited Access Saver pays 4.75% but make more than three withdrawals and it drops to 4.25%. Other deals seem great until you see that you need a £25,000 minimum to open the account. I've also seen lots of short-term bonus rates. This when they offer an initially high interest rate, only for it to end after a few months. "The problem is they are advertising the rate as an AER (annual equivalent rate) when the headline rate is not the same thing,' says Anna Bowes, from financial adviser firm The Private Office. "The AER is supposed to help savers compare how much they can earn over 12 months – so taking into consideration any short-term bonus." Take Chase Bank's saver account which advertises a rate of 4.75% AER, including a 1.75% six-month bonus. Then the interest falls to 3%, meaning the actual AER is just 3.88%. If you put in £5,000 expecting a 4.75% return, you'd earn nearly £50 less than expected. The four questions to ask and avoid dud accounts 3 Here are four questions you need to ask yourself if you're on the hunt for a new savings account Credit: Getty If you are on the hunt for a new savings account, you can no longer assume that the top of the table easy access savings account will give you the best rate. Here's what you need to check. Firstly, Is there a bonus rate? If there is, will you remember to move your money when it ends? If the answer's no, then avoid it. Now check this. What are the rules on withdrawals? I must admit I snapped up a good rate that limits me to four withdrawals a year. But I use it for our holiday money so I know I can plan and stick within the limit to keep the good rate. Thirdly. Do you need a linked account? If you're not switching your current account, it may not be worth the hassle. Although some linked deals offer both a decent savings rate and better current account perks. When I was looking for a new bills account Santander offered tempting cashback, and I now enjoy a 6% interest rate on a linked savings account. Although it falls to 4% after 12 months. And finally. Is it app-only? Make sure you are signing up for an account you'll be able to use. Ultimately, easy access savings accounts are often anything but easy.
The Independent
15-04-2025
- Business
- The Independent
Where should you move your money? Best savings accounts for April 2025
When the financial markets suffer higher-than-typical volatility, as they have this month, many people are drawn to the safety of cash savings. Right now, money in the right bank accounts can offer more than just safety. With the Bank of England (BoE) Base Rate currently set at 4.5 per cent, and inflation officially recorded at 2.8 per cent, we're in a rare period where your cash savings can generate inflation-beating returns. If you'd like to take advantage of this window of opportunity, we've collated some of the highest-earning accounts for a range of different circumstances. You can choose between an easy-access account, fixed-term account, or notice account as your needs demand. Rates and accounts are correct at the time of publication but subject to change at any point. Best easy-access savings accounts If you'll need to withdraw your money in the next few months – or if you're not sure when you'll need it – an easy-access account might be best for you. These won't penalise you for making a withdrawal, or make you wait to do so. One of the highest interest rates available is from the Charter Savings Bank Easy Access Account, at 4.59 per cent. You can pay in or withdraw any time you like, without affecting that rate. Another is the Kent Reliance Easy Access Savings Account (Issue 80), offering 4.5 per cent on deposits over £1,000. Or, if you feel more comfortable with a household name brand, the Post Office Online Saver is offering 4.4 per cent interest for the first 12 months. Best limited-access savings accounts If you only need the freedom to make a few withdrawals across the year, there are various options that might work out more profitably for you than a true easy-access account. One of those is the Monument Limited Access Saver, with an interest rate of 4.75 per cent. You can make up to three withdrawals without affecting that rate, but once you make a fourth withdrawal, the rate drops to 4.25 per cent. Note, also, that the minimum savings amount is £25,000. The Vida Bank Defined Access Issue 1 account offers interest at 4.63 per cent, as long as you make no more than four withdrawals across the year. After the fifth withdrawal, it drops to 2.5 per cent. Another interesting option is the Atom Bank Instant Saver Reward. With this account you'll earn interest at 4.75 per cent, but only in the months where you don't make a withdrawal. If you do make a withdrawal, your rate for that month drops to 3.0 per cent. Best fixed-term savings accounts Easy-access and limited-access accounts, such as those we've listed above, typically have variable interest rates, which can drop at any time. The advantage of a fixed-term savings account is that you can be sure you'll earn the advertised rate across the full period you sign up for. As most industry experts expect interest rates to fall over the coming year, the best deals for fixed-term savings accounts are currently for the shortest periods (e.g. one year). These include: Cynergy Bank 1 Year Fixed Rate Bond at 4.65 per cent Vida Bank 1 Year Fixed Rate Bond at 4.40 per cent Charter Savings Bank 1 Year Fixed Rate Bond at 4.31 per cent Nationwide 1 Year Fixed Rate Online Bond at 4.15 per cent Best notice savings accounts Several banks are currently offering more generous interest rates to people who plan to make withdrawals but won't need immediate access to their cash. The rates tend to get more generous the longer you're able to wait. For example, Charter Savings Bank offers 4.6 per cent interest for a 30-day notice account, 4.65 per cent for 60 days, and 4.70 per cent for 95 days. Oxbury, similarly, offers 4.65 per cent for 35 days or 4.85 per cent for 120 days. Those with £25,000 to save can access great rates with comparably short notice periods from Monument, such as 4.34 per cent interest for a seven-day notice account. Note, however, that notice savings accounts often track the BoE Base Rate. This could fall as soon as next month, as the next decision will be made on 8 May 2025. Best Cash ISAs With interest rates as high as they are, some savers may find that their annual interest will exceed the personal savings allowance, requiring some tax planning. Whether a Cash Isa is the most tax-efficient choice for you depends on what other income and investments you have, so consider this carefully. If you do opt for a Cash Isa, two strong contenders are the Tembo Cash Isa at 4.80 per cent interest and the Trading 212 Cash Isa, with a rate of 4.50 per cent - though readers at The Independent can still benefit from a promotional rate to earn 4.9 per cent including a 12-month bonus. When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
