In a tough year for savers, there's a new winner of this category.
Nationwide has won the Best Savings Provider category of the 2013 lovemoney Awards, ending First Direct’s unbeaten run since the awards began in 2010.
First Direct did, however, come joint runner-up overall along with the Post Office.
It’s been another tough year for savers. Interest rates continued to be slashed due to the Funding for Lending scheme offering banks and building societies the chance to borrow cheaply from the Bank of England. Indeed, Nationwide’s triumph may have more to do with its current accounts than its savings accounts, which perhaps underlines the parlous state of the savings offering out there right now.
With the announcement that Funding for Lending will be targeted at small businesses rather than mortgage borrowers from next year, there is hope savings rates will improve. We have our doubts, certainly in the short term, but we shall see.
Here are the results of the savings sections in full.
Interest rate
Winner: Nationwide
Runners-up: First Direct and National Savings & Investments
Interest rates are arguably the most important thing when it comes to savings, so Nationwide’s victory in this section definitely carries more weight than the others.
[SPOTLIGHT]Its Flexclusive ISA, which is only open to Nationwide current account customers, led the instant access ISA tables this summer. However, it’s probably more of a nod to its FlexDirect current account, which pays 5% interest on balances up to £2,500 for a year. This easily beat any other high street savings account out there this year.
First Direct’s 6%-paying Regular Saver was doubtless a major factor behind its runners-up spot, while NS&I has consistently paid top rates – even if they haven’t been anything to get excited about.
Access
Winner: Tesco Bank
Runners-up: HSBC and Nationwide
Tesco Bank’s instant-access savings offerings have consistently been strong, while its fixed rate accounts offer the option to have interest paid monthly into a separate account.
HSBC also has a range of flexible accounts, although the interest rates vary from OK (up to 1.7% on its Cash e-ISA) to terrible (just 0.10% on the Flexible Saver). As with the interest rate section, Nationwide’s runner-up spot is probably as much as to do with the 5% FlexDirect current account, which is the equivalent of an instant access savings account, than its orthodox savings products.
Customer service
Winner: Post Office
Runners-up: First Direct and Nationwide
Congratulations to the Post Office for providing the best customer service, particularly as its products are so readily available.
It’s no real surprise to see First Direct and Nationwide up there as well.
Saving in a current account
There's been a growing trend for current accounts to pay more interest than savings accounts. Right now, seven current accounts easily beat any high street instant access savings account.
| Account | Maximum gross interest rate AER | Maximum balance on which interest will be paid |
| Nationwide FlexDirect | 5% (for first year) | £2,500 |
| Clydesdale Bank Current Account Direct | 4% (until March 2015) | £3,000 |
| Yorkshire Bank Current Account Direct | 4% (until March 2015) | £3,000 |
| Santander 123 Account | 3% (on balances £3,000-£20,000) | £20,000 |
| Bank of Scotland Classic Account with Vantage | 3% (on balances £3,000-£5,000) | £5,000 |
| Lloyds Bank Classic Account with Vantage | 3% (on balances £3,000-£5,000) | £5,000 |
| TSB Classic Account with Enhance | 3% (on balances £3,000-£5,000) | £5,000 |
While all of these accounts have minimum funding requirements, it's a matter of setting up some Direct Debits and moving your money around. More hassle perhaps, but arguably worth it for more interest.
What's more you can access your money anytime you like.