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