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Savers must meet stipulations to access best rates

Will these best rate savings accounts work for you?


Getting a good savings rate is much harder than in the past. 

There are some decent deals to be had, but with many you’ll have to be aware of certain restrictions.

Here, Which? takes a look at the stipulations associated with some of the best rate savings accounts on the market.

For each of the products featured, we’ve included a link to the Which? Money Compare savings tables, where you can find out more information.  

Shariah compliant investments

Al Rayan Bank offers a number of highly competitive savings deals including its two-year Fixed-Term Deposit account, paying a table-topping rate of 2.30% AER. Click here to find out more about this account. 

It’s worth noting that in compliance with Shariah law, this account does not pay interest. Instead, it pays an ‘expected profit rate’ from its Shariah-compliant investments.

To date, Al Rayan Bank has reportedly always achieved the expected profit rate quoted to customers since the bank was established in 2004. However, returns can’t be guaranteed.

Savings accounts linked with other accounts

Punjab National Bank has some competitive fixed savings deals, including its 1 Year Fixed Term Deposit account. Click here to find out more about this product. 

However, to be eligible for its savings accounts, customers must already hold a current account or another savings product with this provider. 

With this in mind, you’ll need to make sure the other account is right for you before applying for a savings account like this.

What’s more, customers are only able to open Punjab National Bank accounts in-branch.

Accounts with limits on withdrawals

Many of the top-paying instant-access accounts limit the number of withdrawals they permit each year. If you exceed the limit applied, you’ll usually end up earning a much lower rate.

For example, Newcastle Building Society’s Big Home Saver account pays 2.00% AER, but you’ll only earn that if you don’t make any withdrawals and you deposit funds each month. Click here to find out more about this product. 

Regular savings accounts

Regular savings accounts are designed for people who want to save little and often by putting a regular set amount of money into their savings account each month.

Although rates offered on regular savings accounts are much higher than ordinary accounts, you can’t necessarily compare the headline rate directly, as drip-feeding your money in month-by-month affects how much interest you’ll earn compared to starting the account with a larger lump sum.

If a regular savings account is for you, check the Which? Money Compare regular savings accounts table.

Personal Savings Allowance 

From April 2016, basic-rate and most higher-rate taxpayers will be given a tax-free Personal Savings Allowance.

This new allowance means that basic-rate taxpayers will pay no tax on the first £1,000 of savings interest they earn in a tax year. The allowance drops to £500 per tax year for higher-rate taxpayers.

Find out more: Personal Savings Allowance – more information on this allowance

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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.

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