The Smart Way To Save With The Least Hassle

When it comes to savings deals, attractive rates may hook you in, but what are the best paying savings accounts when it comes to paying consistently high interest?

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I reckon I'm pretty Foolish when it comes to choosing a savings account. Always on the lookout for great deals, I always make sure that the little savings I have work as hard as possible.

However, I'll never forget the time when, annoyed at the fact that my bank had slashed the interest rate on my savings, I decided to switch to another provider.

Simple enough you may think.

However, the nightmare which ensued was straight out of Elm Street. After countless phone calls and letters trying to get access to my own money, I finally managed to move my account.

Never again, I told myself.

Trouble is, many banks are quick to reel in customers in with market-leading rates, only to revert to a paltry peanuts rate after the initial fuss has died down. So unless you're happy to switch accounts frequently, or are willing to tie up your savings up in a fixed rate bond, you may end up with a savings account that is not so great after all.

Are there any alternatives?

Be Consistent With Your Cash

Even though they don't often feature in the best buy tables, consistent savings accounts are the unsung heroes of the savings market. They may not offer market leading rates at any one moment, but they give you a good return on your savings for the long term, without the need to tie up your money.

Here's a snapshot of the most consistent no-notice accounts over the last 36 months:

Provider and Account Name	Gross Interest	Min Deposit	Total interest (gross) on £10,000 over 36 months*	Conditions
Beverley BS Postal Account	6%	£5,000	£1604.84	n/a
Chesham BS Save Direct 2nd Issue	5.5%	£2,500	£1550.08	The account will be closed if the balance falls below £2,500.
West Bromwich BS Base Rate Tracker	5%	£500	£1500.61	Guaranteed to track 0.25% below the Bank of England base rate until 30 November 2008. Reviewed annually.
West Bromwich BS Direct Tracker Saver	5%	£10,000	£1487.86	Guaranteed to track 0.25% below the Bank of England base rate until 30 April 2008. Reviewed annually.
Direct Line Direct Access	5.3%	£10,000	£1433.54	n/a

* Based on interest earned on £10,000 in 36 months to 7 January 2008. Source: Moneyfacts

It is worth noting that although these are the most consistent accounts, all five listed above require you to have a balance of at least £500 to qualify not ideal if you're just starting off your nest egg.

Perhaps the solution is to look at the savings accounts which have been most consistent over the past 18 months or more. Then the clear winner is Anglo Irish Bank's Easy Access Deposit Account. Not only does it have a great rate of 6.3% for balances from just £1, but when you need access to your cash, Anglo Irish will send the money to your nominated bank account by CHAPS (same day transfer) at no extra charge.

Look For The Guarantee

Of course, there's no guarantee that an account which has been consistent in the past will continue to deliver in the future. So an account with an interest rate guarantee is another option.

For example, ICICI's HiSAVE account is guaranteed to pay a rate at least 0.3% higher than the Bank of England base rate until 31 December 2011. Right now, HiSAVE's savings rate is a chunky 6.41% AER.

Icesave's Easy Access Savings Account also comes up with a good guarantee. It promises to beat the base rate by at least 0.25% until 1 October 2009 and then to at least match it until 1 October 2011.

This way, although you may not be able to predict the future of interest rates, at least you can be sure that your account won't crash to the bottom of the best buy tables within the next few months.

Find a better savings account today in the Motley Fool'ssavings centre!