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Hot savings deals, 29 August 2012

Which? experts round up the best savings deals
Green Piggy Bank

Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account. 

The best cash Isas on the market

  • Instant access cash Isa: Manchester Building Society offers the best instant-access cash Isa deal, paying 3.06% on initial balances of at least £1,000. This account includes a bonus of 1.05% payable for a year. The Post Office’s Premier Cash Isa pays out 3.01% (including a 1.26% bonus for 18 months). Marks & Spencer Money’s Advantage Isa also stands out with a headline rate of 3.00% without a bonus period – so is worth considering if you want to avoid worry about the rate dropping off. You can also start with a minimum deposit of £25.
  • Notice cash Isa: Notice cash Isa accounts used to pay a higher rate for locking up your money, but don’t tend to anymore. Coventry BS’s 60 Day Notice Isa does pay an attractive rate of 3.25%, but you’ll need to give 60 days notice to get at your cash. This account does not allow transfers in from other providers.
  • One-year fixed-rate cash Isa: Julian Hodge Bank offers the top one-year fixed-rate cash Isa account at 3.35% and allows transfers in from other providers. The Isa from Metro Bank also pays competitive rate of 3.25%.
  • Two-year fixed-rate cash Isa: Santander leads with their Isa paying 3.60% from a minimum deposit of just £1. The two-year fixed-rate cash Isa deal from the Bank of Cyprus at 3.35% is also an attractive product if you’re happy to tie your money up for two years.
  • Three-year fixed-rate cash Isa: Saga offers a decent rate of 3.70%. Saga allows for a minimum deposit of just £1 but is available to people aged over 50 only. Krbs also offers a competitive deal paying 3.51%. This account can be operated at a branch or by post.
  • Four-year fixed-rate cash Isa: The Halifax Fixed Rate Isa Saver offers the top four-year fixed-rate cash Isa deal paying 3.80%. This is closely followed by Julian Hodge Bank’s Isa paying 3.75%.
  • Five-year fixed-rate cash Isa: BM Savings are top with its five-year fixed rate Isa paying 4.05% and requiring a minimum deposit of £500. Halifax and Julian Hodge Bank Fixed Rate Isa accounts currently pay 4.00%. All allow transfers in.

The best savings accounts

  • Instant access savings: The Derbyshire Building Society tops the best instant-access savings table at 3.06%. The Post Office’s Online Saver Issue 6 account is next paying 3.01% on initial balances of just £1.
  • Notice savings: Traditionally, notice savings accounts paid higher rates than instant access accounts in return for tying your money up but this is no longer always the case. Krbs’s Internet 60 Day Notice account  is best at 3.35% on balances from £1,000.
  • One-year fixed rate savings: FirstSave and United Bank UK offer the top-paying one-year fixed-rate savings deals at 3.45%. Krbs also offers a decent rate at 3.40% from initial balances of £1,000.
  • Two-year fixed rate savings: Saga and Shawbrook Bank offer the top-paying two-year fixed-rate savings accounts at 3.80%. Saga accounts are available to people aged over 50s only. Tesco Bank follows closely behind with a deal paying 3.60%.
  • Three-year fixed rate savings: The AA offers the best three-year fixed-rate savings account with a rate of 4.00%. However, Halifax is hot on its heels with a 3.85% deal from an initial balance of £500.
  • Four-year fixed rate savings: Just two deals are in our four-year fixed-rate savings account table this week. Halifax’s branch/telephone and online accounts both pay 3.90% from balances of £500.
  • Five-year fixed rate savings: Vanquis Bank’s online only Five-Year High Yield account currently tops our five-year fixed-rate savings table, paying 4.06% on initial balances of £1,000. Halifax and Julian Hodge Bank are next with accounts paying 4.00%.

And finally… boost your savings

To find out if your savings account is paying a competitive interest rate, check out the Which? Savings Rate Booster tool and switch your account for a better deal if necessary.

More on this…

  • Non-internet savings accounts – for the best rate non-internet accounts
  • Are my savings safe? – the Which? guide to savings protection
  • Euro crisis guide – check your savings account is protected
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