Compare Savings Accounts

Beat low interest rates
Oliver Roylance-Smith, Director

“Here is a range of savings solutions to help you beat low interest rates. We have a selection of leading high-interest paying current accountsinstant access savings and fixed rate bonds, and we also have fixed rate bond alternatives in the form of structured deposits, which protect your capital and offer the potential for much higher returns. Alternatively, if you are looking for even more from your money, then you may need to consider our range of high yield income investments."

 

Oliver Roylance-Smith, Head of Savings and Investments
Savings Selection
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Kick Out DepositInvestec Bank plcyesUp to
6 years
5.25%
per annum
More Info >
  • 5.25% for each year if the FTSE 100 finishes higher than its starting value
  • Opportunity to mature early at year 3, 4 or 5
  • Capital protected
  • Short/medium term alternative to fixed rates
  • Also available for Cash NISAs & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
5 Year Deposit Plus PlanInvestec Bank plcyes5 years27.5% fixed or 100% of FTSE 100 growth (no limit)More Info >
  • Target return of 27.5% gross or 100% of any growth in the Index if higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Also available for Cash NISA & NISA Transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only recieve a return of your original capital
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.
Savings Maximiser - instant access
ProviderAccountFeaturesIndicative Rate* (AER)Latest RatesApply
Instant AccessUp to
1.58%
FactsheetApply Now >
  • Savings service - *Indicative rate of interest highlighted
  • Competitive interest rates from leading UK banks and building societies
  • All money held in your name
  • Online Access
  • £25k minimum deposit
  • Service fee of £20 per month
  • £5k minimum must be held on deposit with Cater Allen Private Bank

* The indicative rate is not a guaranteed rate and reflects what we might achieve when we deposit your money in the Savings Maximiser service based on prevailing interest rates as at 09/07/2014. The indicative rate is based on an average rate across two UK bank accounts. The rate you achieve will be determined by the amount you deposit.

Instant Access Savings Accounts Deals
ProviderAccountInterest Rate (AER)TermApply
1.58%*Instant AccessMore Info >
  • Savings service - *Indicative rate of interest highlighted
  • All money held in your name
  • Monthly interest option
  • Online Access
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • £25k minimum deposit
  • Service fee of £20 per month
  • £5k minimum must be held on deposit with Cater Allen Private Bank
1.30%Instant AccessMore Info >
  • Instant Access
  • Monthly Interest
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
1.30%Instant AccessMore Info >
  • Earn 1.30% gross/AER variable. Includes 0.40% gross* AER fixed bonus after 12 months
  • Open with just £1
  • Unlimited free withdrawals with no notice periods
  • Choose when you receive your interest - monthly on the first business day of each month, or annually in March.
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Online account only
  • Must be UK resident and aged 18 or over
  • After 12 months the rate will revert to the underlying 0.90% gross/AER variable rate

 

*Gross rates do not take into account deductions of income tax.

Fixed Rate Bond Selection
ProviderAccountInterest Rate (AER)TermApply
2.85% to 3.85%5 yearApply Now >
  • Earn 2.85% in first 3 years then 3.85% AER for next 2 years
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
  • No early withdrawals
3.25%5 YearsApply Now >
  • Earn 3.25% gross/AER fixed for 5 years
  • Save from £1,000 - £250,000
  • Monthly and annual interest options
  • Online savings account 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals allowed
  • Bond designed to be held for full term
3.10%5 YearApply Now >
  • Manage your account online, by phone or post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
  • No withdrawals
2.91%4 YearsApply Now >
  • Earn 2.91% gross/AER fixed for 4 years
  • Save from £1,000 - £250,000
  • Monthly and annual interest options
  • Online savings account 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals allowed
  • Bond designed to be held for full term
2.90%4 YearApply Now >
  • Manage your account online, by phone or post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
  • No withdrawals
2.70%3 YearApply Now >
  • Manage your account online, by phone or post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
  • No withdrawals
2.65%3 YearApply Now >
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
  • No early withdrawals
2.60%
minimum
3 YearApply Now >
  • Bank of England Base Rate +1.00% subject to a minimum of 2.60% AER
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
  • No early withdrawals
2.50%3 yearsApply Now >
  • Minimum opening balance of £1,000, up to a maximum balance of £1,000,000
  • Interest paid annually
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.
2.30%2 YearApply Now >
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
  • No early withdrawals
1.95%1 YearApply Now >
  • Manage your account online or by telephone
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Minimum opening balance of £25,000
  • No early withdrawals
1.80%2 YearApply Now >
  • Manage your account online, by phone or post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
  • No withdrawals
1.65%1 YearApply Now >
  • Save from £20,000 
  • Interest paid semi-annually
  • Apply online 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Over 18s only
  • UK residents only
  • No withdrawals or additional deposits

1.60%1 YearApply Now >
  • Manage your account online, by phone or post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
  • No withdrawals
1%18 MonthsApply Now >
  • Open to new and existing customers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • No withdrawals or additional deposits allowed
  • £5,000 minimum deposit
0.75%9 MonthsApply Now >
  • Open to new and existing customers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • No withdrawals or additional deposits allowed
  • £5,000 minimum deposit
Fixed Rate Bond Alternatives
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Kick Out DepositInvestec Bank plcyesUp to
6 years
5.25%
per annum
More Info >
  • 5.25% for each year if the FTSE 100 finishes higher than its starting value
  • Opportunity to mature early at year 3, 4 or 5
  • Capital protected
  • Short/medium term alternative to fixed rates
  • Also available for Cash NISAs & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
5 Year Deposit Plus PlanInvestec Bank plcyes5 years27.5% fixed or 100% of FTSE 100 growth (no limit)More Info >
  • Target return of 27.5% gross or 100% of any growth in the Index if higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Also available for Cash NISA & NISA Transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only recieve a return of your original capital
Defensive Supertracker Deposit Plan yes6 years40%More Info >
  • Return of 2 x FTSE 100 growth above 95% of initial level, capped at 40%
  • Available for NISA, NISA Transfer and Direct Investment
  • Capital protected product
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Investment deadline for NISA transfers - 11 August 2014
  • Investment deadline NISA & non-NISA investments - 18 August 2014
  • Minimum investment £3,000
  • Returns capped at 40%
  • An arrangement fee applies to this plan
  • Returns not guaranteed. You may only receive a return of your original capital
  • Product designed to be held for the full term
UK Super Tracker Deposit PlanSG Hambrosyes6 years4.05 x any FTSE 100 growth (40.5% Cap)More Info >
  • Return of 4.05 x any FTSE 100 growth, capped at 40.5%
  • Capital protected
  • Low minimum - £3,000 
  • Medium/long term alternative to fixed rates 
  • Also available for Cash ISA & Cash ISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Returns capped at 40.5%
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
Deposit Kick OutLloyds Bank plcyesUp to 6 years7.5%
per annum
More Info >
  • 7.5% for each year provided x5 shares finish at least as high as their starting value  
  • Opportunity to mature early at year 2, 3, 4 or 5
  • Capital protected
  • Medium/long term alternative to fixed rates
  • Also available for Cash ISA & Cash ISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Potential returns based on the performance of 5 shares
  • Returns not guaranteed. You may only receive a return of your original capital
Target Income Deposit PlanInvestec Bank plcyes6 years4.5%
per annum
More Info >
  • Potential annual income of 4.5%
  • Income paid if the FTSE 100 finishes above 90% of its starting value
  • Missed payments added to future payment next time anniversary level above 90%
  • Capital protected
  • Medium/long term alternative to fixed rates
  • Also available for Cash NISA & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Why should you have a Savings Account?


A cursory glance at the daily headlines should be enough to convince most of us that we are not doing enough to save money. With spiralling national and personal debts, dwindling pensions, and worries about reduced earnings, there are many savings accounts that can allow people to have high rates of interest.

 

Savings should allow for three to six months living costs in case of unforeseen difficulties (such as redundancy), and one efficient way of doing this is to open a savings account. It’s tempting to select the first available option, but with the interest rates set by the Bank of England at a record low, it is important to compare and contrast different options before committing to an account that might not give you the best possible rate of return on your savings.

 

Fortunately there are many options for savers. With a wide variety of savings plans to compare and choose from, it’s easy to become confused about what works best. Different accounts are designed to meet different needs, and before selecting a savings account you should ask yourself a few questions.

 

How to choose a Savings Account


 

How much am I willing to save?

Savings will only begin to work for you if you can commit to save a minimum level. If the rate of interest looks great, the fine print may tell you that you have to make a minimum commitment that might be too steep, or you may be denied access to your savings for a long time.

 

How is inflation going to affect my savings?

We have all seen how inflation has affected living costs – inflation also affects our savings. If the rate of interest on your money is less than the rate of inflation, the value of your savings is only going to go one way – and that’s down.

 

How will I be taxed on my savings?

Regrettably, tax is a fact of life and savings accounts are also subject to taxation. The only exception are Cash ISAs, which allow you to save at a more favourable rate as any interest earned remains yours and is not taxed.

 

What if I need to get to my money quickly?

If you choose a fixed rate bond your money will be effectively out of reach for a long time. The best option remains an instant access savings account, but this will not offer the long-term return on interest that bonds can offer.

 

When can I expect to see interest paid on my savings?

This can happen annually, quarterly or monthly depending on the type of account. Annual interest will normally be delivered on longer-term savings plans but monthly interest is more usual for instant access savings accounts.

 

Comparing Different Savings Accounts


 

Savings accounts should be compared carefully before taking the plunge, as savings account rates differ according to contractual obligations. It is important to check the minimum balance requirements and also any limits on transfers into the account (some may be limited to one or two transfers a month). It is also possible to set up automatic transfers to an account so that your minimum commitment can be met automatically.

 

1. Instant Access Accounts

Instant access accounts are common, but consumers should shop around for the best rate as some are more competitive than others. These accounts are useful for being able to access funds in a hurry, but with the return on interest low on instant access accounts, there is an incentive to keep saving and contributing to a more profitable account.

Use our services to:

 

2. Notice Accounts

Notice accounts provide a better rate if interest than instant access accounts, but require more notice to withdraw cash – from 1 to 6 months. If you are looking to lock money away for special short term project than a notice account is a good option.

 

3. Internet Accounts

As the costs associated with running internet banks are far lower than those running high street banks, the interest rates they offer can be very favourable. For those who are internet-savvy, access to funds is instantaneous.

 

4. Regular Savings Accounts

Regular savings accounts require a commitment to deposit a set amount of money each month. No withdrawal is possible until the end of the year, once the interest has accrued.

 

5. Cash ISAs

Cash ISAs are a way to secure a better interest return by paying no tax on the interest that your savings receive. You can pay a maximum of £5,940 a year into a cash ISA (2014/15 allowance), but you won’t be permitted to pay any more until the beginning of the next tax year which starts on the 6th April. This means that ISAs have a higher rate of interest than instant access and notice accounts, and are ideal for long term savings. It is also possible to access your money quickly.

 

Use our services to:

 

6. Fixed-rate Bonds

Fixed-rate bonds can offer interest of more than 4%, but the set period of time to lock money in can range from between one and five years. These accounts do not permit access to your funds until the agreement lapses. Interest is paid annually on these accounts, or more typically in one sum when the investment matures. Use our services to compare a range of fixed rate bonds that includes:

 

What to be aware of when choosing a Savings Account


You should consider the effect of tax on your savings. Her Majesty’s Revenue & Customs will claim 20% tax from your savings, unless you have an ISA, which will allow an annual maximum deposit of £5,760 within a single tax year. It is also possible to set up a Junior ISA for young people, which can accrue tax-free interest for young savers until they turn 18.

 

When choosing savings accounts, introductory bonuses can be attractive. Some accounts advertise their headline interest rate of e.g. 3% AER, however this is only payable if you stick to the terms of the account and after the bonus period the rate will probably drop. This favourable introductory rate helps boost the “best buy” rating for the account, but the drop in interest rate after the first year means that savers should be prepared to shop around.

 

Some accounts place limits on the amount that individual customers can save, or how frequently they can access their funds. This is for good reason – the Financial Services Authority guarantees the first £85,000 of savings in case of bank insolvency. If you are fortunate enough to have more than this, it would be advisable to split your savings among several other institutions.

 

Top 10 Tips for Savings Accounts


 

1. Check your bonus rates on savings accounts– after the bonus interest is paid e.g. after 12 months the rate will probably drop leaving your savings earning less. Be prepared to switch to a better-performing account as soon as the bonus rate expires.

 

2. If you can tie your money up fixed rate bonds generally provide better interest rates. From time to time some providers offer inflation linked savings bonds which are designed to protect your cash in real terms.

 

3. Make the most of your ISA allowance – if it’s a Cash ISA then filling it to the maximum annual limit will allow you to build interest without facing tax. The 2014/15 Cash ISA limit is £5,940. Any unused allowance will not carry over to the following year so it is in the saver’s interest to fill this before the end of the tax year.

 

4. If possible, have your salary paid into a high-interest instant access savings account. This will allow your money to begin earning interest the moment it lands in your account.


5. Having goals can be useful for motivation. Saving for a holiday or other project can be a great way of maintaining focus.

 

6. Learn to use internet banking – it is a great way of keeping track of all of your accounts. It is also available outside of office hours and though mobile phones.

 

7. If you are not a tax payer many providers can pay your interest gross. You will need to ask the savings provider for the relevant tax form R85 from HMRC.

 

8. Keep an eye on your Cash ISA interes rate. Providers often pay less interest on cash ISAs because they know that the tax advantages often mean people are reluctant to transfer. You can transfer a cash ISA without penalty to another provider if you are not happy with the interest rate.

 

9. If a fixed rate bond ties up money for too long consider a notice account. With notice accounts notice periods range from 30 days to 180 days. These types of account however are often branch or postal access only.

 

10. With savings accounts deals rates are changing constantly so shop around to ensure you are maximising the interest on your savings.

Interest Paying Current Accounts

Surprisingly some of the best interest rates you can get currently on your savings come from current accounts. Below are a selection of current accounts paying high interest. With Nationwide you can earn up to 5% on savings up to £2,500 and 3% with Santander for savings between £3,000 and £20,000. These accounts come with conditions but provide an opportunity for you in most cases to at least double the interest you would receive currently from a traditional instant access savings account.

Latest Current Account Deals
 AccountInterest (AER)Overdraft RateFunding Required*Fee pmFeaturesApply
5%**0% for 12 months, 50p per day after£1,000 per monthN/A5% in-credit interest on balances up to £2,500 for the first yearMore Info >
Nationwide FlexDirect Current Account

  • **5.00% AER (4.89% gross pa) in-credit interest on balances up to £2,500 for the first 12 months
  • No monthly fee
  • Paperless statements 
  • Visa Debit card and option chequebook 
  • Manage your account online
  • No fees on arranged overdrafts for the first 12 months 
  • Must be 18 or older
  • Overdraft charge of 50p per day after the first 12 months
  • Must pay a minimum of £1,000 into the account each month, from an external source (i.e. not another Nationwide account)

 

Up to 3%£1 per day£500 pm£2Earn cashback on household bills. 3% AER on balances over £3000 More Info >

Santander 123 Current Account

  • Earn cashback on your household bills - 1% on water, council tax bills and Santander mortgage payments, 2% on gas and electricity bills, and 3% on mobile phone, home phone, broadband and paid-for TV packages
  • Visa Debit Card
  • Withdraw up to £300 a day from any Santander or Link cash machine
  • Must be 18 or older and a UK resident
  • Cashback available when you set up at least two eligible Direct Debits 
  • Monthly fee of £2
  • Must pay a minimum of £500 into the account each month

*Some current accounts require customers to pay in a minimum amount each month.

Peer to Peer Lending - Earn high interest on your savings
ProviderAccountTermTarget ReturnMore Info
5 years6.00%
AER
Apply Now >
  • Earn 6.00% AER
  • 60 month term
  • Loans are secured on property
  • Manage your account online
  • Must be aged 18 or older
  • Peer to peer lending is not covered by the FSCS
60 months5.60%
AER
Apply Now >
  • Earn 5.60% AER
  • 60 month term
  • Threefold protection which includes the Lending Works Shield. The Shield has insurance against borrower defaults, cybercrime and fraud. No other peer-to-peer lender offers this.
  • Lenders are protected up to a default rate of 10%, over five times greater than other reserve funds
  • 100% capital returned to every lender
  • Manage your account online
  • Must be aged 18 or older
  • Peer to peer lending is not covered by the FSCS
3 years4.86%
AER
Apply Now >
  • Earn 4.86% AER
  • 36 month term
  • Loans are secured on property
  • Manage your account online
  • Must be aged 18 or older
  • Peer to peer lending is not covered by the FSCS

AER - Annual Equivalent Rate

 

* This is the weighted average net return across all investors lending for 180 days or more through Funding Circle over an annualised period (simple average = 5.8%; median = 6.5%, ie, 50% of investors are earning 6.5% or more). It includes all earnings and is calculated after fees and bad debt but before tax. Past performance is not a guide to future performance. This investment involves lending to UK businesses, where the value of your investment is variable and can go down as well as up. Data correct as of 19 February 2014.

 

Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment as it is not protected by the Financial Services Compensation Scheme, although many lenders offer their own compensation schemes.