Today's best savings rates

4 January 2008


Good news for savers - the new tax year on 6 April saw ISA allowances increase to a total annual savings limit of £7,200, of which up to £3,600 can be kept in a cash ISA.


For the best new ISAs on the market, check out the Moneywise ISA round-up and find out which accounts accept transfers and which don't.

However, if rate is king for you, then Barclays Bank continues to offers an instant mini-cash ISA paying 6.5% AER on deposits from £1. Or Birmingham Midshires pays 6.35% AER on deposits of £1,000.

If you don't mind giving 30-days' notice, then you could consider Scarborough Building Society's 6.3% ISA for deposits from £1,000.

Or National Counties pays 6.26% AER on deposits of £1.

If you are concerned that the Bank of England may cut interest rates in April or in the months ahead, then you may want to consider a fixed rate ISA. Although these accounts protect the rate of interest on your savings, your money will be locked away for a set period of time - so don't go for this option if you need to make regular withdrawals.

Principality offers a six-month account paying an impressive 6.6% AER - transfers are permitted but the minimum deposit is £3,600.

Skipton also offers a fixed-rate account paying 6.26% AER until 5 April 2009. The minimum deposit is £50 but transfers are not allowed.

Or, if you are willing to put your money away for four-years, then Halifax pays 6.2% AER on deposits of £3,000.


          Introductory bonus
Source: Moneyfacts 03/04/08


If you want a fixed rate ISA and have the full £3,000 to put aside then Halifax has a four-year fixed rate ISA paying 6.20% AER.

But if you’ve got less to save and want a fixed rate ISA, then Nationwide offers a one-year product paying 6.15% on deposits from just £1. It also offers a two-year account at the same rate.

Julian Hodge Bank offers a one-year account also paying 6.15% - but only if you are willing to invest the full £3,000.

Fixed rate accounts

If you've used your ISA allowance and want a regular saving account where the interest rate is protected from Bank of England base rate changes, then a fixed rate account might be for you. Icesave has a six-month account paying 6.76% AER or a one-year account paying 6.7%. But you will need a deposit of at least £1,000 to open either of these accounts.

An alternative is Birmingham Midshires' six-month account which will pay 6.76% on deposits of just £1.

Elsewhere, SAGA offers a one-year account with an AER of 6.41% for deposits as little as £1, and Cheshire Building Society pays 6.3% for one-year on deposits of £1,000.

Short-term fixed accounts AER Notice/term Deposit
Souce: Moneyfacts 03/04/08
Birmingham Midshires 6.76% Six-months £1
Icesave 6.76% Six-months £1,000
Icesave 6.7% One-year £1,000
SAGA 6.41% One-year £1
Cheshire BS 6.3% One-year £1,000
Alliance & Leicester 6.3% 01/05/09 £1,000

For a slightly longer fixed deal, Icesave offers a two-year account paying 6.6% on deposits of around £1,000. It also has a three-year account paying 6.5% again on deposits of £1,000.

FirstSave also offers two accounts both priced at 6.3% for either two-years or three-years, as long as you have £1,000 to put away.

Or, Shepshed Building Society has a two-year account paying 6.25% on deposits of £500.

Instant access accounts

If you want to manage your money online, then Kaupthing Edge offers a savings account paying 6.5% AER on deposits of £1,000.

If you have less to save then FirstSave has an Easy Access online account paying 6.26% on deposits of £100.

Or you could opt for ICICI Bank’s HISAVE Saving account which pays 6.17% on deposits from £1.

And Principality BS has an online offering paying 6% AER on deposits from £1

Internet accounts AER Notice/term Deposit
Soure: Moneyfacts 03/04/08
Kaupthing Edge 6.5% None £1,000
FirstSave 6.26% None £100
ICICI Bank UK 6.17% None £1
Bradford & Bingley 6.15% None £1
Icesave 6.05% None £250
Principality BS 6% None £1

Heritable Bank has launched an account paying 6.06% AER on deposits of at least £1,000 although it only allows six withdrawals a year. If you have less to save then Anglo Irish Bank pays 6.05% on deposits from just £1.

Or if you are happy to manage an account through the post, then Bradford & Bingley pays 6% AER on deposits of at least £1,000.

Best of the rest

If you are committed to making regular savings then Abbey has a fixed account paying 7.23% AER for monthly deposits of between £20 - £250.

If you are over 50 then you could consider a product from Coventry Building Society. It has extended its 60-plus notice account to the over 50s. The account has an AER of 6.45%, which includes a 0.60% bonus for the first year from account opening.

Finally, if you’re a parent looking to set up a savings account for your children, then Halifax’s one-year Children’s Saver bond continues to outshine its competitors, paying 10% AER on deposits from £10.

If you have less to save then Yorkshire Building Society offers an instant access account paying 5.99% on deposits of £100.

To search and apply for other great saving rates click here.

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