Savers are having a tough time right now, with a combination of low interest rates and high inflation. That’s why there’s never been a more important time to think about savings accounts – and how to get the best deal you can when it comes to putting away some of your hard-earned and making it work for you.
If you’re looking for the best savings accounts and a one-stop shop to compare interest rates, we can help. Savingsandisas.co.uk is an independent website which helps savers compare interest rates on savings accounts, ISAs and savings bonds. Whether you’ve come to the site because you want to compare high interest savings accounts, or you are looking to learn more about the different ways to save, you should find the information you need.
This is probably the question most people ask when comparing savings accounts. It’s not actually that straight forward because there’s more to it than just the ‘headline’ savings rate. So if you make a beeline to the highest interest rate savings accounts, you may get short-changed in the long-run. That’s because you need to think about the whole picture and factor in tax and the small print when it comes to things like bonuses. Like a used car, even the shiniest and most impressive looking savings account could turn out to be a lemon if you haven’t done your homework.
Savings accounts come in a variety of packages - with different labels depending on the bank, building society or savings provider. It’s not only interest rates that distinguish one type of savings product from another though. The difference between them also boils down to things like ease of access to your money, whether you have to make regular or minimum deposits, and whether you get a bonus for leaving your money ‘locked up’ with one provider for a set period. So if you are looking to find the best deal on a savings account, we’ll help you compare and choose from one of the following products:-
More than the three basic types of savings vehicles, there is a plethora of different types from instant access savings accounts, to 30, 60 and 90 days’ notice accounts as well as NS&I accounts, offshore savings accounts, cash ISAs, stocks and shares ISAs, fixed rate savings bonds – the list goes on, but we compare and explain them all.
The right savings account for you won’t necessarily be the one with the highest interest rate – if you want to be able to access your money at short notice, you might be better off with a lower savings rate but an easy access account. But if you’ve got plans – maybe you’re getting married, or eyeing up a new car or house extension - a higher fixed rate deal could be the one to go for if you don’t mind your money being locked up for a year or more. Similarly, if you’ve had a new arrival in the family and you want to provide a nest-egg for his or her future – a children’s savings account might be just the ticket.
Tax is a fact of life for most of us and if you want to avoid at least 20% of your interest going straight to the tax man, then an ISA is your first port of call. By putting your savings in a tax-free ‘wrapper’ a cash ISA enables savers to squirrel away up to £5,340 in any tax year, without paying tax on the interest (or a total of £10,680 including stocks and shares).
Similar to a savings deposit account, savings bonds offer higher interest rates but usually offer a fixed-term from one to five years and a fixed interest rate. The best savings bond accounts offer excellent returns but are only worthwhile if you can afford to have your money locked up for a long period and are confident you won’t need to access it until the end of the term. Penalties usually apply for making withdrawals part way through a term, which negates the advantages of a high interest rate. Savings bonds won’t suit everyone, but for many that don’t mind this relatively inflexible arrangement, this is where the smart money goes.