Interest rates on savings products are expected to fall, so if you have some spare cash, now could be the time to fix it for a period to outpace inflation for years to come.
Leaving your cash languishing in a low-paying savings or current account means you could be missing out on valuable interest from higher rates.
Given the lingering effects of the cost-of-living crisis, inflation forecast to rise again later this year, and the Bank of England base rate finally being cut from 5.25% to 5%, it’s more important than ever to review your savings and make every penny count.
Savings interest rates had been rising off the back of 14 consecutive Bank of England base rate hikes before the bank paused its rate-hiking cycle, then made a cut last week for the first time in four years.
Anna Bowes, co-founder of Savings Champion, said: “It’s finally happened. After months of speculation, the base rate was cut to 5% on 1 August.
“The result? Well, rates are already tumbling, even the fixed rates, which should have already anticipated a base rate cut.
“Although variable rates will continue to be susceptible as the rates can change at any time, if you have some cash that can be fixed, you may want to act swiftly to grab the top rates while you can – that includes the lower-paying longer-term bonds, as more cuts are expected down the line.”
Below, Savings Champion reveals the best buys across easy-access, notice, fixed rate and ISA cash accounts:
EASY-ACCESS ACCOUNTS
5.2% Ulster Bank Loyalty Saver – minimum deposit £5,000. Apply and access in branch, online or via mobile banking or phone. Available to existing Ulster Bank customers who hold a current account. Interest drops to 2.25% below £5,000 balance.
5% Principality BS Online Bonus Triple Access (Issue 2) – minimum deposit £1. Apply and access online. Three withdrawals can be made from the account every calendar year, including closure. Interest rate includes a 1.4% bonus for the first 12 months.
4.91% Paragon Double Access Account (Issue 8) – minimum deposit £1,000. Apply and access online. Upon third withdrawal within an account year, the rate decreases to 1.5% AER.
4.9% Close Brothers Easy Access Account (Issue 4) – minimum deposit £10,000. Apply and access online. Rate falls to 1% if balance falls below £10,000.
4.85% Kent Reliance Easy Access Savings Account Issue 71 – minimum deposit £1,000. Apply and access in branch or online.
NOTICE ACCOUNTS
5.35% Vanquis 90 Day Notice Account (Issue 5) – minimum deposit £1,000. Apply online, access online, by phone or via post. Withdrawals are subject to 90 days’ notice; no early access is allowed. Interest is paid monthly or on maturity.
5.35% Prosper/Santander International 185 Day Notice Tracker (Provided by Santander International) – minimum deposit £20,000. Withdrawals are subject to 185 days’ notice; no earlier access is allowed. Rate tracks the Bank of England base rate. The account is available exclusively through the Prosper app, powered by the Akoni cash savings platform, and provided by Santander International. Santander International is covered by the Financial Services Compensation Scheme (FSCS), so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Santander International will also count towards this limit.
5.3% Vanquis 60 Day Notice Account (Issue 1) – minimum deposit £1,000. Apply online, access online, by phone or via post. Withdrawals are subject to 60 days’ notice; no early access is allowed.
5.25% Hinckley & Rugby BS 180 Day Notice – minimum deposit £2,500. Apply and access in branch or by post. Withdrawals are subject to 180 days’ notice only; no earlier access is allowed.
5.25% Investec 90-Day Notice Saver – minimum deposit £5,000. Apply and access online. Withdrawals are subject to a 90-day notice period; no earlier access is allowed.
ONE-YEAR FIXED TERM BONDS
5.25% Union Bank of India Fixed Rate Deposit – 1 Year – minimum deposit £1,000. Apply in branch or by post. No access within the term.
5.2% Progressive BS Online 1 year Fixed Rate Bond (Issue 4) – minimum deposit £500. Apply online. No access within the term.
5.2% Raisin/Al Rayan Bank 12 Month Fixed Term (Provided by Al Rayan Bank) – minimum deposit £1,000. Apply online. No access within the term. Available exclusively through the Raisin UK platform via the partner bank Al Rayan Bank. Al Rayan is covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Al Rayan will also count towards this limit. The rate is not guaranteed; in order to comply with Sharia Law, the rate displayed is an expected profit rate.
TWO-YEAR FIXED TERM BONDS
4.94% Hodge 2 Year Fixed Rate Bond (online only) – minimum deposit £1,000. Apply online. No access within the term.
4.9% The Access Bank Sensible Savings 2 Year Fixed Rate Bond – minimum deposit £5,000. Apply online or by post. No access within the term.
4.9% Earl Shilton BS 2 Year Savings Bond Issue 1 – minimum deposit £5,000. Apply by post or in branch. No access within the term.
THREE-YEAR FIXED TERM BONDS
4.72% Hodge 3 Year Fixed Rate Bond (Online only) – minimum deposit £1,000. Apply online. No access within the term.
4.7% The Access Bank Sensible Savings 3 Year Fixed Rate Bond – minimum deposit £5,000. Apply online or by post. No access within the term.
4.7% United Trust Bank 3 Year Bond (Online only) – minimum deposit £5,000. Apply online. No access within the term.
FIVE-YEAR FIXED TERM BONDS
4.55% Raisin/Al Rayan Bank 60 Month Fixed Term (Provided by Al Rayan Bank) – minimum deposit £1,000. Apply online. No access within the term. Available exclusively through the Raisin UK platform via the partner bank Al Rayan Bank. Al Rayan is covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Al Rayan will also count towards this limit. The rate is not guaranteed; in order to comply with Sharia Law, the rate displayed is an expected profit rate.
4.5% United Trust Bank 5 Year Bond – minimum deposit £5,000. Apply online. No access within the term.
4.5% Close Brothers 5 Year Fixed Rate Bond – minimum deposit £10,000. Apply online. No access within the term.
VARIABLE RATE CASH ISAS
5.17% Plum Cash ISA – minimum deposit £100. Apply and access via mobile app. The rate of 5.17% AER includes a bonus of 0.88% for the first 12 months, providing the following conditions are met: The account balance is kept at £100 or more and you have no more than three withdrawals in a single year. A fourth withdrawal or your balance dropping below £100 will result in the interest rate dropping to 3% AER. Transfers of existing ISA funds are allowed, but these receive the basic rate of 4.29% AER. The basic rate of interest of 4.29% is paid monthly, and the Plum bonus rate of 0.88% will be added at the end of the first year. This is not a flexible ISA.
5.1% The West Brom BS WeBSave 60 Day Notice ISA Account (Issue 2) – minimum deposit £5,000. Apply and access online. You can make withdrawals by giving 60 days’ notice or you can withdraw earlier at a charge equivalent to 60 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA.
5.05% Marsden BS Online Cash ISA (Issue 3) – minimum deposit £500. Apply and access online. Easy-access. Transfers in are allowed.
5% Progressive BS 1 Year Double Access Cash ISA Account (Issue 3) – minimum deposit £1. Apply and access in branch or by post. Two penalty-free withdrawals per tax year. Additional withdrawals are allowed subject to the account reverting to an instant-access cash ISA at a lower rate. Transfers in allowed.
5% Principality BS Online Bonus 5 Access Cash ISA – minimum deposit £1. Apply and access online. Easy-access. Five withdrawals permitted each tax year, but the ISA can be closed or transferred at any time. Rate includes a variable 1.45% bonus for the first 12 months. Transfers in are allowed.
ONE-YEAR FIXED TERM CASH ISAS
5.05% Virgin Money 1 Year Fixed Rate Cash ISA Exclusive (Issue 14) – minimum deposit £1. Apply online or in branch. You need to have a current account with Virgin Money that was opened on or after 4 December 2019, or you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B. The maturity date is 31 March 2025. Full and partial withdrawals are permitted during the term, but you will be charged 60 days’ interest on the amount taken out.
4.92% Close Brothers 1 year Fixed Rate Cash ISA – minimum deposit £10,000. Apply online. Access on closure, subject to a 90-day interest penalty. Transfers in are accepted.
4.91% Kent Reliance One Year Fixed Rate Cash ISA (Issue 100) – minimum deposit £1,000. Apply online or in branch. Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed within 30 days of account opening.
TWO-YEAR FIXED TERM CASH ISAS
4.73% Beehive Money Two Year Fixed ISA (Issue 4) – minimum deposit £500. Apply online. Access on closure only, subject to a 180 days’ interest charge. The maturity date is 30 September 2026. Transfers in are allowed in full only.
4.72% Harpenden BS 2 Year Fixed Rate Cash ISA (Issue 1) – minimum deposit £1,000. Apply in branch or by post. Access on closure only, subject to the loss of 180 days’ interest. Transfers in are not allowed.
4.71% UBL UK 2 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online in branch or by post or mobile banking app. Access on closure or full transfer out only, subject to 180 days’ loss of interest. Transfers in are allowed.
THREE-YEAR FIXED TERM CASH ISAS
4.55% United Trust Bank Cash ISA 3 Year Bond – minimum deposit £5,000. Apply online. Withdrawals are allowed, subject to a withdrawal charge equivalent to 270 days’ interest. Interest can be withdrawn annually without penalty. Transfers in are allowed.
4.55% Close Brothers 3 Year Fixed Rate Cash ISA – minimum deposit £10,000. Apply online. Access on closure, subject to a 270-day interest penalty. Transfers in are accepted.
4.51% UBL UK 3 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online in branch or by post or mobile banking app. Access on closure or full transfer out only, subject to 270 days’ loss of interest. Transfers in are allowed.
FIVE-YEAR FIXED TERM CASH ISAS
4.26% UBL UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online in branch or by post or mobile banking app. Access on closure or full transfer out only, subject to 365 days’ loss of interest. Transfers in are allowed.
4.25% United Trust Bank Cash ISA 5 Year Bond– minimum deposit £5,000. Apply online, manage online, by post or phone. Withdrawals are allowed, subject to a withdrawal charge equivalent to 365 days’ interest. Interest can be withdrawn annually without penalty. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.
4.25% Beehive Money Five Year Fixed ISA (Issue 5) – minimum deposit £500. Apply online. Access on closure only, subject to a 365 days’ interest charge. The maturity date is 30 September 2029. Transfers in are allowed in full only.
Rates correct as of 6 August 2024
