Best savings rates this week

Last updated: Sep 2nd, 2015
Feature by Moneywise editorial team

In this article, Moneywise reviews regular, children's savings, fixed-rate and instant-access accounts with the best savings rates currently on the market.

If you haven't used your cash Isa allowance this tax year, then getting an Isa should be your first port of call, check our round-up of the best cash isa rates.

Find the best Cash Isa or savings account for you

INSTANT ACCESS

If you're looking for an account where you can access your money quickly, then a no-notice deal is a good idea.

Just remember, the interest rate on these accounts is variable so it could decrease down the line.

Also, watch out for sneaky terms and conditions - not all instant access accounts offer unlimited withdrawals, so shop carefully. 

  • RCI Bank Freedoms Savings Account offers 1.65% AER on a minimum investment of £100. Accounts must be managed online.
  • Kent Reliance Easy Access Account will pay 1.65% AER on balances over £1,000. You can open an account with a pound online, in branch or by post.
  • BM Savings: Online Extra (Issue 19) pays 1.6% AER on balances over £1,000, but there’s a few things to watch out for. The rate includes a 1.35% introductory bonus, so you’ll need to make a note to move your money after a year. You’ll have to open the account online, and you won’t get any interest on £1,000 of the deposit.

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NOTICE ACCOUNTS

If you want to make withdrawals but are happy to give your bank or building society notice before you do, then you could get a better rate with a notice account, although recently rates have been disappointing.

FIXED RATE

Fixed-rate savings accounts are normally aimed at people with a lump sum that they wish to lock away for a pre-agreed period of time.

Interest is fixed so your return is guaranteed. However, bear in mind that withdrawals and further deposits are rarely allowed.

SHORT TERM

One year/18 months:

Two year:

  • Aldermore Fixed-Rate Account pays 2.35% AER gross on balances of £1,000. Postal, telephone and onkine applications are accepted.
  • RCI Bank 2 Year Fixed-Term pays a rate of 2.35% AER on minimum investment of £1,000. The account can be accessed online only.
  • For smaller balances, Nottinghamshire Building Society will pay 4% AER on balances between £10 and £4,800. Withdrawals and early closures aren’t permitted and you’ll have to open the account in branch.

MEDIUM TERM (THREE AND FOUR YEAR TERMS)

LONG TERM (FIVE YEAR)

REGULAR SAVINGS

The current economic backdrop has not only highlighted the importance of saving, but means more people would like to do it little and often.

  • First Direct Regular Saver pays 6% AER on deposits between £25 and £300 per month. The rate is fixed for 12 months and is only available to existing customers.
  • M&S Bank’s Monthly Saver offers 6% AER on deposits between £25 and £300 to its current account holders. The interest is paid annually, and the rate is fixed for 12 months. After this, the money will either be transferred to your current account or transferred to the everyday savings account, which pays 0.35% AER so you’ll need to make a note in your diary to switch in a year.
  • The TSB Monthly Saver returns 5% AER on monthly deposits between £25 and £250. The rate is fixed for 12 months and withdrawals have to be paid into a TSB current account, so you’ll need to bank with it already. Unlike M&S Bank and First Direct, TSB offer instant access to your savings without penalty.  

CHILDREN'S SAVINGS ACCOUNTS

  • Halifax Kids Regular Saver offers a market-leading 6% AER 12-month bond. You can deposit between £10 and £100 in the account each month.  
  • Nationwide FlexOne Regular Saver pays a fixed headline rate of 3.5% AER on investments of  up to £100 per month to children between 11 and 17. The bond can be managed in branch, online or by phone. There’s no access limitations, though you’ll need to be an existing customer.
  • Dudley Building Society’s Junior Easy Saver pays 3.5% AER on balances over £10, up to the age of 15. At this point, you’ll be transferred to the instant-access Junior Saver, which pays 1.75% AER.

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