How to avoid being stung by teaser savings ratesTop savings rates without 12-month bonuses

29 September 2015

Gold Piggy

Which? Money highlights the best rate savings accounts without introductory bonuses.

If you're keen to find out more about any of the deals, we've included links to the Which? Money Compare savings tables.

Top savings rates plummet after 12 months

BM Savings and Tesco Bank have raised their instant-access savings rates and are nearing the top of the Which? Money Compare tables. However, both accounts come with teaser rates which plummet after the first 12 months.

BM Savings Online Extra and Tesco Bank's Internet Saver both pay 1.6% AER, but 12 months' later the rates drop to 0.25% and 0.75% respectively.

The ICICI Bank UK HiSave SuperSaver account currently tops the Which? Money Compare instant-access savings accounts table, paying 1.65% AER and there is no teaser rate.

Which? Money Compare table: Instant-access savings accounts - hundreds of accounts compared

Cash Isas also come with bonus rates

The Newcastle BS Big Home Isa Saver account tops the instant-access cash Isa table, offering 2.02% AER, but it comes armed with eligibility restrictions. 

This rate will reduce to 1% AER if you fail to save regularly into the account (without exceeding the maximum monthly deposit of £1,270). This account is exclusively available in-branch and the maximum balance you can build up is capped at £30,000.

If you're looking for an account without a bonus rate, Punjab National Bank's Variable Rate Cash Isa offers the best rate in our table, paying 1.65% AER.

Which? Money Compare table: Instant access cash Isa - find a great deal 

Current accounts paying better rates than savings accounts

Nationwide's FlexDirect account pays 5% AER on balances up to £2,500, but this is only payable for the first year. Thereafter, the rate will drop to 1% AER.

TSB's Plus current account offers 5% AER on balances up to £2,000, but unlike Nationwide's FlexDirect account, the rate isn't guaranteed to fall after a year. 

This account offers 5% cashback on your first £100 of contactless payments each month. You'll also get access to the TSB Monthly Saver account, which pays 5% AER on savings of up to £250 each month.

Find out more: Best current accounts if you're in credit - see our tables

Use eMindme to avoid plummeting savings rates

It can be easy to forget to switch accounts when your savings rate drops. That's why we created Emindme - a free email reminder service that helps you stay on top of your finances. 

Add a few details and we'll send you a reminder email, giving you plenty of time to take action before your teaser rate comes to an end.

Find out more: Emindme - set up a reminder in two simple steps. 

Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.