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Savings deals of the week, 16 May 2013

Which? experts round up the best savings deals

piggy bank still life

Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account. 

Best fixed rate savings accounts on the market

Despite the Bank of England base rate remaining static at 0.50% since March 2009, interest rates on fixed term accounts are continuing to fall on a daily basis. 

We’ve seen massive drops in the rates offered over recent months, for example, the best three-year fixed rate deal six months ago offered a rate of 3.30%, but today the top account pays just 2.51% – a drop of 0.79%. 

And a year ago, the difference in interest on a three-year fixed rate bond compared with today would have been 1.49%. If you had invested £10,000 in the best three-year fixed rate account a year ago, you would earn around £1,272 in interest at the end of the fixed term compared with £781 in the best account available today – a loss of around £491.

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 2.10%. Krbs also leads the two-year fixed rate table, at 2.36% and offer the second best rate in the four-year fixed rate table, at 2.50%. If you are able to tie your money up for longer, say five years – Virgin Money currently offers the best deal at 3.00% from initial balances of just £1.

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.

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