Hot savings deals, 7th August 2012Which? experts round up the best savings deals
07 August 2012
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: Aldermore offers the top one-year fixed-rate cash Isa account at 3.30% and allows transfers in from other providers. The Isas from Bank of Cyprus UK, Julian Hodge Bank and Metro Bank also pay a competitive rate of 3.25%.
- Two-year fixed-rate cash Isa: Santander's Two-year Fixed Rate Major Isa leads with a 4.00% rate and has a minimum deposit of just £1. The two-year fixed-rate cash Isa deal from the Post Office at 3.60% is also an attractive product if you're happy to tie your money up for two years.
- Three-year fixed-rate cash Isa: Bank of Cyprus UK, The Post Office and Saga both all offer a decent rate of 3.70%. Saga allows for a minimum deposit of just £1.
- Four-year fixed-rate cash Isa: The Halifax Fixed Rate Isa Saver pays 4.10% and is the only four-year fixed-rate cash Isa deal that qualifies for inclusion in our tables at the moment.
- Five-year fixed-rate cash Isa: The Halifax leads the way again with its five-year fixed rate Isa paying 4.15% and requiring a minimum deposit of £500. Birmingham Midshires Savings and Julian Hodge Bank Fixed Rate Isa accounts currently pay 4.05% and 4.00% respectively. All allow transfers in.
The best savings accounts
- Instant access savings: Krbs's Direct Savings and Santander's eSaver Issue 5 accounts top the best instant-access savings table at 3.20%. The rate on the Santander account reverts to 0.50% after a year, so you will need to switch to a more competitive account.
- 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. Manchester BS's Platinum Notice 60 Day account leads our table at 3.36% from balances of £1,000. This is closely followed by Krbs's online and postal/telephone accounts at 3.35% and 3.25% respectively.
- One-year fixed rate savings: Recommended Provider Aldemore, along with United Bank UK, offers the top-paying one-year fixed-rate savings deals at 3.45%. These apply respectively to balances of £1,000 and £2,000
- Two-year fixed rate savings: The AA offers the top-paying two-year fixed-rate savings account at 3.80%. Secure Trust Bank follows closely behind with a deal paying 3.76%.
- Three-year fixed rate savings: Secure Trust Bank tops the three-year fixed-rate savings table with a rate of 4.01%. However, Saga is hot on its heels with a 4.00% deal with just a £1 minimum balance.
- Four-year fixed rate savings: Just two banks are in our four-year fixed-rate savings account table this week. Secure Trust Bank pays a very competitive 4.21% on balances of £1,000. 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. Clydesdale Bank and Yorkshire Bank's Term Deposit accounts (available in-branch and online) both pay 4.05% on balances of £2,000.
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.