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Sky News
30-04-2025
- Business
- Sky News
Savings Guide: The current best rates to make the most of your cash
Why you can trust Sky News As we approach another Bank of England base rate decision next Thursday, the markets are expecting to see a cut from the Monetary Policy Committee, writes Anna Bowes, savings expert from The Private Office. So, ahead of that meeting, I thought I'd round up some of the most popular accounts and see how the top rates have fared recently. Easy access There is now more than £900bn in easy access savings accounts, according to the latest figures from the Bank of England. Much of this is likely to be earning a poor rate of interest, especially if it is languishing with the high street banks. There is also a staggering £301bn sitting in current accounts earning no interest at all. There are plenty of competitive rates available, paying more than inflation and even a few paying more than the base rate of 4.5%. But it's important to look beyond the headline rates as many of the top accounts have restricted access and/or short-term bonus rates. There have been small positive changes to leading accounts over the past month. At the beginning of April, the top rate available was 4.75% and the average across the top five accounts was 4.67%. Last week, the financial app Chip launched the Chip Easy Access Saver, which has gone to the top of the table, offering 4.76% AER. However, this account allows only three penalty-free withdrawals a year - any more and the rate drops to 2.1% for the rest of the year. In addition, it includes a 12-month bonus rate of 1.20%. There are plenty of straightforward accounts available too. The latest issue of Charter Savings Banks Easy Access Account (Issue 58) is paying 4.59% AER, with no bonus or restricted access. Easy access cash ISAs It's another positive story in the easy access best buy table, with two more accounts paying more than 5% AER. This means the top rates on offer are paying more than the non-ISA equivalents - even more of an incentive to make sure you use your cash ISA allowance - which remains at £20,000 this tax year, although this is under review. These two new accounts are available via financial app companies Plum and MoneyBox, paying 5.06% and 5.05% respectively. They are not banks in their own right, so your money is deposited with their partners CitiBank, in the case of Plum, and a split between Santander and HSBC if you opt for MoneyBox. Your cash is protected by the Financial Services Compensation Scheme, assuming you don't hold £85,000 with these banks already. If you'd rather not use a financial app, Vida Savings has a Defined Access ISA Issue 1 paying 4.63% AER. This account can be opened online with a minimum of £100 but, as the name suggests, you are restricted on the amount of penalty-free withdrawals that can be made each year. Charter Savings Bank, which is also an online account, is paying 4.59% on its Easy Access Cash ISA Issue 57, but this allows you to make as many withdrawals as you like. Fixed-rate bonds Although some of the best buy fixed-term bond rates available have fallen a little in the past month, there are still plenty of inflation-busting accounts available. Now could be the time to fix given the base rate is expected to fall next month. At the beginning of April, you could have fixed for one year at 4.70% - today it's a little less at 4.65% AER. That's still higher than inflation, 2.6%, even if tax is deducted. The top rates for longer fixes have fallen but, again, only by a very small amount. You can still lock in for two years at 4.53%, three years at 4.55% and five years at 4.56%. Fixed-rate ISAs The drops have been a little harsher for fixed-rate ISAs. That said, you can still find accounts paying more than 4.20%. Two-year and five-year terms are both paying 4.30%, the top one-year cash ISA is paying 4.26%, and the top three-year ISA pays 4.20%. Although the top ISA rates look lower than the bond rates, if you pay tax on your savings, the net rate is likely to be lower. Example If you were to deduct the basic rate tax, 20%, from the LHV Bank one-year bond paying 4.65%, the post-tax rate is 3.72%. On a balance of £20,000, you would take home £744 from the bond, whereas you would take home £852 from the top one-year tax free ISA. If you are not a taxpayer or you are not yet fully using your personal savings allowance, then the ISA might not be the best choice.
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.
