Top Deals For Savers


Updated on 16 December 2008 | 0 Comments

If your cash is earning less than 5% AER, why not move it to one of these best buy savings accounts?

Although we're often being told the contrary, you may be surprised to learn that we in the UK aren't that bad at saving. In fact, according to research from IFA Promotion, UK savers managed to salt away a fantastic £136bn into savings accounts in 2006. That's a whopping £25bn more than we managed in 2005 -- making it a record breaking year for UK savers.

However, although this is great news, it's important not to rest on your laurels when saving. Table topping savings accounts can fall quickly out of favour, so if you opened an account six or more months ago, it's worth checking what your rate is now (after all, there have been three interest rate rises in the last seven months!).

If your account isn't up to scratch, here are the current best buy, instant access accounts for savings of £250+. Note that these savings accounts pay a straight rate with no catches, bonuses, or penalties for withdrawals.

Top, Straight Paying, Instant Access accounts for £1k+

Provider

Rate/AER

Min-Max Investment

Rate guaranteed?

Accessed

Icesave
Easy Access

5.70%

£250 - £1m

Rate guaranteed to be at least 0.25% above Base Rate
to 1.10.09 then at least equal to Base Rate to 1.10.11.

Internet

ICICI (apply via the Fool)
HiSAVE account

5.65%

£1-£2m

Rate will be at least 0.25%AER above base rate
until 31.12.07

Internet

Principality BS
e-SAVER

5.60%

£1-£1m

No

Internet

Yorkshire BS Internet Saver

5.55%

£1-£1m

No

Internet

Sainsbury's Bank
Internet Saver
(apply via the Fool)

5.50%

£1-£2m

Rate promise: guarantees that the annual interest rate
on your Internet Saver account will be higher than the
average rate, based on our comparison basket of over
100 equivalent accounts.

Internet



As you can see, the clear winner for savings of £250+ is from Icesave, while the ICICI account offers the highest rate for those wishing to save £1 or more. It's also worth noting that the Sainsbury's bank account allows you to open multiple savings accounts (a bit like ING's Direct saver) allowing you to earmark accounts if saving for different things, such as Holiday, rainy day money etc).

And remember, none of these accounts charge or limit the number of withdrawals you can make, nor do they include short term bonuses. What you see is what you get.

If, unlike me you're willing to put up a few terms and conditions to get at your cash, here are some of the top- paying savings accounts for savings of £1+.

Top, Instant Access Accounts for £1+, with conditions

Provider

Rate/AER

Min-Max investment

Rate guaranteed?

Conditions

HSBC
Online saver
(apply via the Fool)

5.75%

£1-£50k

No

Interest lost for any month in which a withdrawal is made. Interest payable on new money to HSBC. Bank will donate £2 to Earthwatch, The Climate group and WWF for every account opened.

Birmingham Midshires Websaver

5.70%

£1-£5m

Rate includes 0.75% bonus for 12 months.

Six withdrawals pa allowed - account reverts to Internet Easy Access upon 7th withdrawal.

ICICI
HiSAVE account
(apply via the Fool)

5.65%

£1-£2m

Rate will be at least 0.25%AER above base rate until 31.12.07

Principality BS e-SAVER

5.60%

£1-£1m

No

AA
Phone & Save bonus Savings 2

5.60%

£1-£5m

No

4 withdrawals permitted pa.



Top payer here is HSBC, although a whole month's interest will be lost in any month a withdrawal is made. It's also worth noting that those with existing HSBC accounts cannot just shift money over to the online saver -- all funds must be new money to the bank.

Alternatively, Birmingham Midshires Websaver pays 5.70%AER -- including a 0.75% bonus for a year.

And finally, for those with a little more to save, here are the best savings accounts for savings of £1,000+.

Top, Instant Access Accounts for £1,000+, with conditions

Provider

Rate/AER

Min-Max investment

Rate guaranteed?

Accessed/Conditions

Scarborough BS Click & Save Issue 3

5.80%

£1k-£1m

Rate includes 1.00% bonus
until 30.06.2008, then 0.45% bonus until 30.06.2009

Min. withdrawal £1k

HSBC Online saver(apply via the Fool)

5.75%

£1-£50k

No

Interest lost in any month a withdrawal
is made. Interest payable on new money to HSBC. Bank will donate £2 to Earthwatch,
The Climate group and WWF for
every account opened.

Icesave
Easy Access

5.70%

£250 - £1m

Rate guaranteed to be
at least 0.25% above
Base Rate to 1.10.09 then at least equal to Base Rate to 1.10.11.

Birmingham Midshires Websaver

5.70%

£1-£5m

Rate includes 0.75% bonus for 12 months.

Six withdrawals pa allowed - account
reverts to Internet Easy Access
upon 7th withdrawal.

Bradford & Bingley eSavings 3

5.60%

£1k-£2m

Rate guaranteed to at least equal Base Rate until 30.6.09.



Best buy account here is from Scarborough BS, paying 5.8%AER. However, this does include a 1% bonus until June next year. However, as this is over a year away it could be argued that you could take advantage of the rate until then, and then simply move your cash to another account.

So there you have it -- the best buy savings accounts of the moment for those needing to move their cash, or indeed start saving. Get switching!

> Compare Savings Accounts At The Fool
> How Savings Accounts Really Work
> Best Accounts To Save £1

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