Savings Accounts without Bonus Interest

Savings accounts without bonus interest rates will offer a fixed or variable rate - which one you choose depends on your preference.

Bonus rates are usually for a limited time such as 12 months, so when they come to an end you can find your savings are not earning nearly as much. At this point, it is important to shop around and switch to another top deal. Savings accounts without bonus interest rates, such as fixed rate bonds, are also for limited periods only, so the same rule applies. Variable rates can change without much warning, but you can benefit if interest rates rise.

 In opening a savings account without bonus interest it is recommended that you compare as many types of savings accounts as possible and the wide variety of providers that offer them to ensure you find the right account for you. There is a range of different types of savings accounts available - compare some of the latest deals by taking a look at our comparison tables:

There are advantages and disadvantages in opening a savings account without an interest bonus. Some potential advantages are:

• You may not be restricted to making regular monthly payments to qualify for an annual interest bonus and as a result, you may be free to save as and when you wish.
• In opening a savings account without bonus interest with your existing financial provider, you may be entitled to a consistently high rate of interest or certain financial rewards.
• You may be able to make unlimited cash withdrawals in a savings account with no bonus interest, as opposed to someone who has a savings account with bonus interest and might not be permitted to make withdrawals.

The main disadvantage in opening a savings account without bonus interest is that you will receive no annual bonus. If you know that you will be able to make regular payments into your savings account, it may be worth considering opening a bonus interest savings account to make the most of your finances.

• Fixed rate bonds, offering a fixed interest for a set period of time with restrictions on withdrawals
• Instant access accounts which offer variable interest rates, often with a temporary bonus rate
• Notice savings accounts, accounts where funds can be withdrawn after a period of notice
• Regular savings accounts, designed for savers making regular contributions to their savings

You can use your cash ISA allowance to save tax-free. Compare leading cash ISA deals here »