Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Best savings accounts on the market
In the present savings market, there are no deals around that will pay the minimum amount of interest to match or beat the effects of inflation and tax. So, to get the best out of your savings, you should use up your tax free cash ISA allowance (£5,760) before putting your money in a taxable account.
You should also keep track of your account’s interest rate as switching to a more competitive account could boost what you get back.
The account coming closest to delivering the interest needed for savings to grow in real terms is First Save’s 5-year fixed-rate bond, which pays out 2.90% (the threshold rate for a basic rate taxpayer would be 3.63%)
Falling far short of this mark, but at the top of our consistency table, is the NS&I easy access Income Bond, paying 1.75%. This, and three other accounts in the table have held an average or better rate for the past three years – so if you dislike changing regularly between accounts, it’s worth checking our consistency listings to see which providers are more likely to sustain a decent rate over time.
Most attractive savings accounts with good customer service
No providers performed outstandingly in our most recent customer satisfaction survey – however four (First Direct, Coventry BS, Yorkshire BS and Virgin Money) did receive full marks for their level of customer service.
Of these, Virgin Money and Yorkshire BS had the best rates – both for 5-year fixed bonds – of 2.75% and 2.40% respectively. Yorkshire BS had the best instant access account with a rate of 1.4% (though the best rate in this category is a 1.75% deal offered by NS&I).
Find more Best Rate products
- Best Rate savings accounts – to find the best instant access, notice or fixed-rate savings accounts.
- Best Rate cash Isas – to find the best tax-free instant access, notice or fixed-rate cash Isa deals.
- Best Rate credit cards – to find the best cards to suit your requirements.
- Top unsecured personal loans – for borrowing £5,000 over 3-years or £10,000 over 5-years.
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.