Get the top rate on your savings
There's a new market-leading savings account out - and it's a good 'un, says John Fitzsimons.
Who would be a saver? Rates on everything from fixed bonds to regular savers have generally been naff, and even those products that have offered an alluring deal have had some pretty major flaws.
Take the account that has been topping the savings tables for months, from Coventry Building Society. This 'easy access' account paid a great rate of interest (3.3% AER), but it provoked the ire of all of us here. Why? Because despite being labelled as an easy access account, it could only be operated by post, with withdrawals by cheque.
That may have counted as easy access in the 1800s, but things are a tad more advanced these days.
Thankfully, there's a new show in town now, and it's got us all a little excited.
Summer in the Citi
Citi has launched the Flexible Saver Issue 6 account, a brilliant easy access account paying a monster 3.30% AER - easily the top of the market.
As is the way with the best accounts at the moment, that does include a fairly hefty one year bonus - 2.25% in this case. Of course bonuses are not the evil beings they once were - nowadays you should view it as a guarantee that, no matter what happens, you know you will be getting at least 2.25% on your money.
Accounts can be opened with as little as £1, and you can save up to a whopping £1m!
So it really does cater for all needs.
I want my money - now!
As well as offering a market-leading rate, this account is a true easy access account - if you want to get your hands on your own cash, there are no notice periods or penalties.
And you can also manage the account online, over the phone, or by post - a flexibility that certain building societies should take note of!
It's not perfect
Inevitably the Citi Flexible Saver Issue 6 account is not perfect. For a start, after 12 months, it drops to the standard variable rate, which currently stands at 1%. So chances are you may have to move your money elsewhere in a year.
What's more, this deal is only available to new customers. If you already have an account with Citi then you only qualify for that rubbish standard varitable rate of 1%.
A clear message to all Citi customers then: your loyalty won't be rewarded.
How it compares
Now, I've already mentioned that this account is the top of the tree, but just how much better is it than its nearest rivals? I've put together the table below to outline the best easy access savings accounts in the market today, and what they offer.
|
Provider/account |
Interest rate (AER) |
Bonus? |
Minimum / maximum deposit |
Withdrawal restrictions |
Access |
|
3.30% |
2.25% fixed for 12 months |
£1 / £1m |
None |
Online, phone, post |
|
|
3.2% (fixed rate) |
No |
£1 / £1m |
None |
Online and phone |
|
|
3.15% |
2.65% variable for 12 months on balances under £25,000 |
£1000 / £2m |
None |
Online |
|
|
Birmingham Midshires Telephone Extra |
3.15% |
2.65% fixed for 12 months |
£1 / £1m |
None |
Telephone |
|
3% |
1.75% for 12 months |
£1 / £1m |
Have to be instructed online, cannot withdraw more than £10,000 in a single day |
Online |
As you can see, Citi is undoubtedly the best deal in the market, and offers the most flexibility in managing your money.
If I was about to open up a brand new easy access account tomorrow, Citi would always be my first choice. However, if you already have an account with Citi, then you could do an awful lot worse than ING's account, which presents a very attractive alternative. It pays 3.2%, fixed for a year, and yet like the Citi account, also allows penalty-free instant access.
More: Britain's worst savings accounts! | Ten ways to get a better return on your savings
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Comments
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Whatever the Interest Paid on UK Based Savings After the Election Next Spring [Whoever Wins] It is Likely that : 1.] [b]Taxes Will Rise[/b]. [So find a REALLY Good ISA Based Account if Possible & Avoid at least SOME Tax. 2.] [b]The Rise in the Value of the Euro [& to a lesser extent the US Dollar] will Almost CERTAINLY dramatically increase many UK prices.[/b] [Holidays in the Eurozone have begun to rise already.] Fruit & Out of Season Veg, Wine, Clothes,Cars, Property Abroad, Travel [Fuel is bought in Dollars.] and much, much more. Speculation against the lonely 'Pygmy Pound' will be also likely to exacebate matters. The British People will begin to REGRET their listening to that well known American Citizen from Australia Rupert Murdoch.[Whose prices for SKY will go 'Sky High'.] Bill Cash M.P. [Well up the Greedy M.P.s list, & one of John Major's 'Bastards'] and of course the right wing Tories & UKIP. All with selfish 'AGENDAS' that work against Britains long term interest whilst purporting to support it. Just ask yourself do you care enough about 'The Pound' to see it constantly sink in value against the US Dollar & the Euro or might it JUST be better to be part of one of the STRONGEST Currencies in the world the Euro? By the way Spain's Euro's have their King's image on as do others have THEIR national symbols. We have Scots Fivers & Our 'Pound & Other Coins' have national symbols on them. The Channel Islands & Gibraltar should look at 'Leading the Way' if this is impossible here. ,
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What about Ulster?, they seem to be paying a fair rate for access funds. Or am I our of date already?
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I think people like Lovemoney should lobby the government on behalf of savers. We've been truley prudent and responsible, the sort of people who are not responsible for the economic problems, yet we get poor interest rates for our money helping to shore up the banks. QE has also introduced a risk of hyperinflation. Seems to me the whole system is managed back to front. Non of the savings schemes look very interesting. The highest rate schemes involve reletively long term lock-in. There is a real danger that interest rates could shoot up and leave savings vunerable.
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11 October 2009