Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Interest rates continue to fall
Despite the Bank of England base rate remaining static at 0.50% since March 2009, interest rates on fixed term accounts are still continuing to fall.
We’ve seen massive drops in the rates offered over recent months, for example, the best three-year fixed rate deal a year ago offered a rate of 4.00%, but today the top account pays just 2.55% – a drop of 1.45%.
Over the same period, we have seen an even bigger drop in interest rates. Last August, the top-paying two-year fixed rate deal paid 3.80%, but today, the top rate on offer pays a whopping 1.50% less – at 2.30%. If you had invested £10,000 in the best two-year fixed rate account a year ago, you would earn around £774 in interest at the end of the fixed term compared with £465 in the best account available today – a loss of around £309.
Best fixed rate savings accounts on the market
As savings rates are volatile, we highlight the top fixed-rate savings accounts for you.
Krbs sit at the top of the one-year fixed rate savings table this week, paying 2.05%. Krbs also leads the two-year fixed rate table, at 2.35% and offer the second best rate in the four-year fixed rate table. If you are able to tie your money up for longer, say five years – FirstSave and Shawbrook Bank offer the best rates at 2.90%.
Find more Best Rate products
- Best Rate savings accounts – to find the best instant, notice and one to five-year fixed rate accounts.
- Best Rate cash Isas – to find the best tax-free instant, 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 £10,000 over 5-years or £5,000 over 3-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.