Best savings rates this week

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

Remember, these rates are before tax, but from next year most people will be able to earn £1,000 interest from savings tax-free (depending on your income tax rate). In any case, if you haven't used your Cash Isa allowance this tax year, getting an Isa should be your first port of call. See our round-up of the best Cash Isa rates.

Unless otherwise specified, all these banks are individually licenced by the FCA, so your savings will be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. 

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. 

Britannia Select Access Saver 7 1.1% AER 
This can be opened in Co-operative Bank branches, online or over the phone. Interest rate is 1.1% but only if account holders make four withdrawals or fewer each calendar year.

Yorkshire Building Society Single Access Saver (Issue 4) 1.1% AER 
This can be opened in branch or by post. Interest rate is 1.1% but account holders are limited to one withdrawal each calendar year.

Tesco Bank Internet Saver 1.06% AER
This online-only account offers a top rate of 1.06%, although this includes a 0.66% bonus which expires after a year.

NOTICE ACCOUNTS

If you are happy to wait a little while before accessing your savings, rates on notice accounts tend to be higher than instant access savings. Some won't allow early access at all, though others may let you withdraw without notice, subject to losing some interest. However, there are very few notice accounts on the market today that will beat our easy access best buys.

Paragon Bank 120 Day Notice Account (Issue 6) 1.3% AER
This offers 1.3% on deposits between £500 and £100,000. This account is online only.

Shawbrook Bank 120 Day Notice Personal Savings Account (Issue 39) 1.25% AER
Beware, this headline rate is only for balances of £1,000 or more. Any balances below this amount will have no interest paid at all. Online only.

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, unlike instant access and notice accounts, which tend to be variable. However, do bear in mind that withdrawals and further deposits are rarely allowed.

ONE YEAR

Charter Savings Bank One Year Fixed Rate Bond 1.55% AER
Available if you deposit between £1,000 and £250,000. No early access is allowed, and the account must be opened online.

Aldermore One Year Fixed Rate Account 1.5% AER
This online-only account pays 1.5% fixed for 12 months, minimum balance of £1,000.

Union Bank of India (UK) One Year Fixed Term Deposit 1.5% AER
Account is available via post or the bank's London office. You can save upwards of £1,000 in this account, and the cash is FSCS protected up to £85,000.

TWO YEAR

Axis Bank UK Two Year Fixed Deposit 1.7% AER
No early access is allowed, and the account must be opened online or in branch. Minimum balance is £1,000. Savings are FSCS protected up to £85,000

Paragon Bank Two Year Fixed Rate 1.7% AER
Available if you deposit between £1,000 and £100,000. No early access is allowed, and the account must be opened online.

Union Bank of India (UK) One Year Fixed Term Deposit 1.7% AER
This account can be opened online or in the bank's London branch. Must have a balance of at least £1,000. Savings are FSCS protected up to £85,000

THREE YEAR

Raphaels Bank 36 Month Fixed Rate Bond 1.9% AER
This account is fully protected by the UK's FSCS. Minimum balance is £5,000 and account can be opened in branch or online.

Charter Savings Bank Fixed Rate Bond 1.87% AER
Only available online, this 1.87% rate is fixed for 36 months from account opening.

Wesleyan Bank Limited Three Year Fixed Rate Deposit Account 1.81% AER
This saver is online only and you must have a minimum balance of £1,000 to open.

FIVE YEAR

Paragon Bank Five Year Fixed Rate Saver 2.25% AER
Online-only account paying 2.25% on balances over £1,000. No withdrawals are permitted before end of term.

United Bank UK Five Year Fixed Deposit Account 2.2% AER
This account offers a rate of 2.2% on balances over £2,000, for 60 months. Operated online, through the post or in one of its six UK branches - located in Birmingham, Bradford, central London, Glasgow, Ilford and Manchester.

Close Brothers Five Year Fixed Term Deposit 2.2% AER
This pays 2.2% to savers who lock away for five years, but you do need a whopping £10,000 to open an account. This account can be opened online and through the post.

REGULAR SAVERS

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

Nationwide Flexclusive Regular Saver 5% AER
Only available to people with a Nationwide Flex current account. Savers can deposit up to £500 per month. It’s available in branch or online. 

First Direct Regular Saver 5% AER 
For deposits between £25 and £300 per month. The rate is fixed for 12 months and is only available to existing customers.

HSBC Regular Saver 5% AER 
For deposits between £25 and £250 per month. The rate is fixed for 12 months and available to current account customers.

M&S Bank Monthly Saver 5% AER
Rate available on deposits between £25 and £250 to its current account holders. The interest is paid annually, and the rate is fixed for 12 months.

Santander Regular eSaver 5% AER 
This is for deposits of up to £200 per month. The rate is fixed for 12 months and is only available to 123 World customers.

Virgin Money Regular eSaver 2.25% AER
The best option not linked to a current account pays 2.25% AER on balances up to £250 per month. This account is only available online.

CHILDREN'S SAVINGS ACCOUNTS

Putting cash aside for your kids is always a good idea, and the interest rates tend to be much higher than offered in adult accounts. Here are our top picks for children's savers.

Halifax Kids Regular Saver 4% AER
This is the top 12-month bond. You can deposit between £10 and £100 in the account each month.

Saffron Building Society 4% AER 
Available in branch or by post. It can be held for a year, by anyone up to 15. You can save £100 a month. When the account matures, savings are transferred to an account paying 0.5% AER, so remember to make a note to switch.

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HOW ARE THESE PRODUCTS PICKED?

We look across as much of the of the savings market as possible to find the best deals using industry data from Defaqto.

All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.

Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount).

Deals only available to particular age groups or for “additional subscriptions” are also not included.

All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise products from UK-based providers. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities.

We reserve the right to use our discretion at all times.

To see all the savings accounts we consider, visit our savings and Isa comparison tool.

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