Which? Money provides a round-up of the best savings deals currently on the market.
Rates rise on fixed-term savings accounts
Over recent weeks, rates on fixed-term accounts have increased as the competition in the market intensifies.
Short-term bonds could be ideal for savers looking for decent returns on their money without having to lock their money away for too long.
There are also great deals available to savers looking to tie-up their money for a longer term. However, you’ll need to make sure you can commit to the fixed-term, as early access may result in a hefty penalty.
Here, we highlight some of the best accounts outside of Isas to consider putting your cash savings.
If you’re keen to find out more about any of the deals, we’ve also included links to Which? Money Compare, where you’ll find more details about each savings account.
Best rate savings accounts
We have excluded savings accounts with certain qualifying conditions, restrictions on withdrawals or bonus rates which drop after a certain period.
Instant-access savings account
Top of the table for instant-access savings accounts is Nottingham Building Society, offering 1.52% AER on deposits above £500. This account can only be opened and operated online. Withdrawals are made via a nominated account. Click here for more information.
Tesco Bank offers the next best rate in our table, paying 1.50% AER with its Internet Saver account. Interest is paid annually and you only need £1 to open an account.
Notice savings account (up to 30 days)
Notice savings accounts once paid a higher rate for locking up your money than instant-access accounts, but at the moment there aren’t any paying more than the top instant-access savings rate.
Charter Savings Bank and Post Office Money offer the highest rates in our table, both paying 1.40% AER on initial deposits of £500 and £1,000 respectively.
Aldermore offers the next best rate in our table, paying 1.3% AER.
One-year fixed-rate savings account
Currently topping the one-year fixed-rate savings tables is Shawbrook Bank, paying 2.15% AER. You’ll need a deposit of at least £1,000 to qualify for the account. Click here for more information about this savings account.
Charter Savings Bank 1 Year Fixed Rate Bond offers the next best interest rate in our table, paying 2.06% AER for deposits of £1,000 or more.
Two-year fixed-rate savings account
Shawbrook Bank tops this table, paying 2.45% AER. A minimum of £5,000 is needed to invest in this account. Click here for more information.
Al Rayan Bank offers the next best rate in our table of 2.42% AER. However, the rate from Al Rayan Bank is an ‘expected profit rate’ from its Sharia-compliant investments, so returns are not guaranteed.
Three-year fixed-rate savings account
Al Rayan Bank offers the best rate in our table in this category, paying an expected profit rate of 2.73% AER from initial deposits of £1,000. Click here to find out more about this savings account.
United Trust Bank offers the next best rate in our table, paying 2.60% AER from initial deposits of £500.
Four-year fixed-rate savings account
Charter Savings Bank’s four-year fixed rate bond tops this table, paying 2.75% AER. Click here to find out more about this account.
Tesco Bank offers the next best rate in our table, paying 2.70% AER on initial deposits of £2,000.
Five-year fixed-rate savings account
Secure Trust Bank tops our five-year fixed-rate table, offering a rate of 3.05% AER. You need a minimum deposit of £1,000 and interest is paid annually. More information can be found here.
United Bank UK offers the next best rate in our table, paying 3.04% AER from initial deposits of £2,000.
Which? Money Compare table: Fixed-term savings accounts – compare hundreds of deals
If you haven’t used up your 2015/16 cash Isa allowance
The Which? Money Compare tables also compare hundreds of cash Isas, so it’s easy to find the highest available rates. If you’re looking for the best stocks and shares Isa, you can watch our short video which explains what to look for.
Personal savings allowance – new limits
From 6 April 2016, a new Personal Savings Allowance will be introduced. Basic-rate taxpayers will have no tax to pay on the first £1,000 of interest, and higher-rate taxpayers will have no tax to pay on the first £500. However, interest earned above these thresholds will still be taxable.
Find out more: Tax on savings and investments – our guide explains how much tax you’ll pay
- Have your savings questions answered – call the Which? Money Helpline
- Read our expert guide on how to transfer your cash Isa
- Discover what happens to your Isa savings when you die under the new inheritance rules
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.