Top Ten Savings Accounts
You can now get a cash ISA paying 6.3% and a no-notice savings account paying 6.41%.
If you feel that you have less disposable income now than you did, say five years ago, then David Kuo's latest prediction (which you can read by downloading our free report here) will probably ring true already.
David believes that the rising costs of living (for example housing costs, petrol, food and utilities) coupled with low pay rises and a rising tax burden mean that we're able to put less and less money away for future. The problem, of course, is that many of us are continuing to spend, and in doing so increasingly living beyond our means. Unless we rein in this spending, by 2012 the average family taking home 55k could find themselves facing an annual budget deficit of around 8k, which will only become more marked as time goes by.
And while the first place we turn to in times of trouble is our savings, the majority of us are putting far too little away. For example, while historically we would squirrel away around 8% of our take home pay (8 in every 100), we're now saving a measly 2% - that's just 2p out of every £1. Too little in savings could force us to take out personal loans, use expensive credit cards and simply get into more debt, and so the cycle continues.
Start saving!
If you haven't yet got any savings, the most obvious place to start is by opening a tax-free cash ISA anyone over 16 can save up to 3k each year, and all of the interest earned is yours. From April this year, you will be able to save even more cash tax-free: 3,600 to be exact. Alternatively, you can also invest in a stocks and shares ISA -- visit HM Revenue & Customs to find out more.
Remember, you don't even need to declare the interest you earn from an ISA on your tax return. You can find my top cash ISA picks in the table below:
Top Cash ISAs
Provider | ISA | Rate/AER | Notice | Allow Transfers? | Min. deposit |
|---|---|---|---|---|---|
Scarborough BS | Notice ISA | 6.30% | 30 days | Yes | £1,000 |
Icesave | Easy Access | 6.10% | No notice | Yes | £1,000 |
Loughborough BS | 90 day Notice ISA | 6.10% | 90 days | No | £1 |
Kent Reliance BS | Direct mini cash ISA | 6.05% | No notice | Yes | £1 |
Principality BS | e-ISA | 6.05% | No notice | Yes | £1 |
Source: Moneyfacts
Note: If you already have a cash ISA that you haven't checked on for a while, you may find that its rate has slipped. If this is the case, consider moving that cash to one of the best buys that allows transfers.
If, on the other hand you've used your ISA allowance for the year, there are plenty of great savings accounts available at the moment. Check out my current best buys in the table below:
Top Savings Accounts
Provider | Account | Rate/AER | Notice | Min. deposit |
|---|---|---|---|---|
HiSAVE | 6.41% | No notice | £1 | |
Bradford & Bingley | Internet Saver | 6.40% | No notice | £1 |
E-SAVER | 6.30% | No notice | £1 | |
Icesave | Easy Access | 6.30% | No notice | £250 |
Newcastle BS | NewcastleNet Savings Issue 7 | 6.13% | No notice | £250 |
Source: Moneyfacts
So although the rising costs of living can spell doom and gloom, by spending some time tackling our own expenses and starting a savings plan we can get ourselves into stronger financial positions. >
> Use The Motley Fool Savings Centre to apply for a market-leading savings account.
This article first appeared in an email.
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