If you've got a pound and want to save it, here are the highest paying savings accounts to choose from.
Although many of us have been Fools for a few years now, amassing healthy sums of rainy day cash in high interest savings accounts, many of our newer readers are just starting out with this saving malarkey. So where should a new Fool just beginning to save stash his pound?
Well, I've been checking this out, and the good news is there are plenty of places to choose from. What's more, although you might believe only larger sums of money can earn a decent rate, this is far from true.
Top Accounts to Save £1+
Provider | Account | Rate/AER | Conditions | Access |
|---|---|---|---|---|
Online Saver | 5.75% | No interest paid in any month a withdrawal is made. | Internet | |
Birmingham Midshires | BM Websaver | 5.70% | After 6 withdrawals/one year the account reverts to Internet Easy Access. Rate includes 0.75% bonus for 12 months. | Internet |
ICICI (apply through the Fool) | HiSAVE | 5.65% | Rate guaranteed to be at least 0.25% AER above base rate until 31.12.07. | Internet |
AA | Phone & Save Bonus Savings 2 | 5.60% | Rate includes 0.84%AER bonus for 12 months. Four withdrawals permitted pa. | Phone |
Yorkshire BS | Internet Saver | 5.55% | Interest must be paid away | Internet |
Sainsbury's Bank (apply through the Fool) | Internet Saver | 5.50% | Until 31.12.10 the annual interest rate will be higher than the average rate | Internet |
As you can see, not having very much cash to save doesn't mean you have to suffer a mean interest rate -- the HSBC account is paying a market leading 5.75% AER, closely followed by Birmingham Midshires 5.7%AER.
However, it's worth pointing out that the HSBC account is aimed at savers who are happy to leave their money alone for long periods, as you'll lose interest for a whole month each time you make a withdrawal. And Birmingham Midshires only pays its market leading rate for 12 months, after which you'll be switched to another account.
The best savings account for those that need access to their cash would be from ICICI, Yorkshire BS or Sainsbury's Bank. Additionally, the Sainsbury's bank account allows savers to open more than one account and label them individually -- so you could have separate accounts earmarked for holidays, car repairs etc.
So don't lose heart if you don't have much money to put away, choose the right savings account and your money will grow to become a healthy sum in no time.
And for anyone with a Lloyds TSB current account that really struggles to save, why not sign up for its Save the change scheme? Each of your debit card transactions is rounded up to the nearest pound, with the extra being saved automatically into your Lloyds TSB savings account. What's more, Lloyds TSB will match whatever you save in February and March -- so you could get some free money to help you along, too!
> Find a superior Savings Account.
> Don't Let The Banks Pinch Your Money!