Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Cuts in savings rate continue
The Bank of England base rate has remained at an all time low of 0.50% for over four years (the longest hold for 60 years), meaning that savers have continued to suffer with poor interest rates on their savings.
We’ve seen interest rates steadily fall on savings accounts open to new savers over recent months, but banks and building societies are also cutting rates on closed accounts.
For example, West Bromwich Building Society cut the rate on its Direct Bonus Issue 4 and Issue 5 accounts – which are closed to new savers – to 1.75% from 2.25% (including the bonus).
If you have savings sitting in an account no longer open to new savers, you may find it harder to keep track of the interest you’re earning. It’s essential that you check the rate you’re getting regularly and if it’s no longer competitive, switch your savings to a top-paying deal.
The best rates currently on offer
National Savings & Investments (NS&I) currently offers the best instant access savings account rate at 1.75%. The AA, Krbs and the Post Office are next with accounts paying 1.50%.
If you haven’t already maximised your tax-free Isa allowance, the top instant access cash Isa also available from NS&I pays 2.25%. However, transfers in from other providers isn’t permitted. The best account allowing transfers in – offered by BM Savings, pays up to 2.00%.
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.