Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Is it time to switch your savings account?
If you have money sitting in a savings account which is no longer available to new customers, chances are, you’re earning a pittance in interest.
New Which? Money research found that almost 40% of closed accounts (often known as superseded or zombie accounts) are paying 0.50% or less, with nearly one in five paying a miserly 0.10% or less.
Out of the 1,952 savings accounts and cash Isas in the market, just 390 are available to open by new customers and the rest – 1,562 – are closed accounts.
If you have a zombie account, check the interest rate you’re getting as it’s likely you’ll find a better place for your savings.
Boost your savings
To find out if your savings account or cash Isa is paying a competitive interest rate, use the Which? Savings Rate Booster tool and switch your account to a better deal if necessary.
The best rates currently on offer
The AA currently offers the best instant access savings account rate at 1.60% which includes a bonus of 1.10% payable for a year. Sainsbury’s Bank and Virgin Money follow closely behind, paying 1.55% and 1.51% respectively.
If you haven’t already maximised your tax-free Isa allowance (£5,760 until 5 April 2014), the top instant access cash Isa available from Virgin Money pays 1.75% and accepts transfers of previous years’ tax-free Isas.
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.