Billions of pounds are sitting idle in accounts with no interest, yet top-paying savings accounts are currently offering between 4% and 7.5%. Savers are being urged to check their accounts and switch to more competitive deals.
Research from Spring, a savings app owned by Paragon Bank, estimates that Britons are losing out on £20billion in interest every year, with £526billion languishing in current and low-interest savings accounts. Derek Sprawling, managing director of savings at Spring, said: “There are 74 million current accounts in credit in the UK earning zero interest, and these do not simply comprise small balances, with 6.6 million containing £10,000 or more.”
It comes at a time when there are more savings account choices than ever before. Research from Moneyfactscompare in August showed that overall product choice rose month-on-month to 2,274 savings deals, including ISAs, a “record high.”
However, average interest rates are on a downward trend, making it increasingly vital for savers to review their accounts and snap up a better deal while they’re still available.
Rachel Springall, finance expert at Moneyfacts, said: “Savings product choice has reached a record high, and this has been largely fuelled over time by the increase of new challenger banks entering the market. New brands bring positive energy into the arena, as they typically fight harder for savers’ deposits to fund their future lending.
“However, with the Moneyfacts Average Savings Rate falling slightly to 3.50%, there is no denying that lower interest rates will dampen the sentiment of savers, but they must ensure to compare deals and switch regularly, and not to let apathy win.”
Here is a list of the savings accounts offering the highest interest rates at the time of writing, according to Moneyfacts data.
Best easy-access savings accounts
Here are the top 10 easy-access savings accounts this week:
- Chase – 4.75% AER
- Revolut – 4.5% AER
- Sidekick – 4.48% AER
- Principality Building Society – 4.45% AER
- Cahoot – 4.4% AER
- Oxbury Bank – 4.36% AER
- Snoop – 4.35% AER
- Chip – 4.32% AER
- Harpenden Building Society – 4.31% AER
- Spring – 4.3% AER
Best regular savings
Here are the top 10 regular savings accounts this week:
- Principality BS – 7.5% AER
- Zopa – 7.1% AER
- First direct – 7% AER
- The Co-operative Bank – 7% AER
- Nationwide BS – 6.5% AER
- Lloyds Bank – 6.25% AER
- Darlington Building Society – 6% AER
- Monmouthshire Building Society – 6% AER
- West Brom Building Society – 6% AER
- Market Harborough Building Society – 5.8% AER.
Best fixed-rate savings accounts
Here are the top three savings accounts with a one, two and three-year fixed rate this week:
One-year fixes:
- Chetwood Bank – 4.5% AER
- Al Rayan Bank – 4.45% Expected Profit Rate (EPR)
- Investec Bank plc – 4.42% AER
Two-year fixes:
- Chetwood Bank – 4.5% AER
- Afin Bank – 4.41% AER
- Birmingham Bank – 4.41% AER
Three-year fixes:
- Chetwood Bank – 4.5% AER
- JN Bank – 4.45% AER
- Birmingham Bank – 4.44% AER
Best Cash ISAs
Here are the top 10 easy access cash ISAs this week:
- Principality 4.4% AER
- Trading 212 – 4.38% AER
- Cynergy Bank – 4.35% AER
- Plum – 4.35% AER
- Chip – 4.32% AER
- Harpenden – 4.31% AER
- Family Building Society – 4.3% AER
- Marsden Building Society – 4.3% AER
- Charter Savings Bank – 4.26% AER
- Aldermore – 4.25% AER.
Here are the top 10 Cash ISAs with a one-year fixed rate this week:
- Chetwood Bank – 4.32% AER
- Cynergy Bank – 4.32% AER
- Vida Savings – 4.31% AER
- Tembo Money – 4.27% AER
- Charter Savings Bank – 4.21% AER
- Vanquis Bank – 4.21% AER
- Aldermore – 4.2% AER
- Castle Trust Bank – 4.2% AER
- Close Brothers Savings – 4.2% AER
- United Trust Bank – 4.2% AER.
