With interest rates at record highs and no signs of increasing anytime soon, what’s the best place to save your money and get a decent return?
Investing in stocks and stocks can be the best option for saving for the long term. But if you need to access your cash fairly quickly – maybe because you’re planning to buy a house or save for a wedding – then a cash savings account might be more suitable for you. Here we collect the best current options for saving money.
Investment bank JP Morgan has launched a new digital bank in the UK called Chase. The bank offers a savings account that pays 5% annual interest for the first 12 months and offers 1% cash back on debit card spending.
Any expenditure made through the account is rounded up to the next £ 1. The difference is then paid into a separate savings account which earns 5% interest. This is currently the highest rate in the market for an easy-to-access savings account. The downside is that Chase hasn’t launched yet and there is a waiting list to sign up.
The second best rate is 0.7 percent, offered by the Chip savings app (but
Chip also charges a fee of £ 1.50 every four weeks). During this time, Family Building Society pays annual interest of 0.65%, but you must be prepared to pay a minimum of £ 10,000. Marcus by Goldman Sachs is offering 0.5 percent interest, falling to 0.4 percent after 12 months.
Regular savings accounts
The highest interest rates for savers are usually offered through regular savings accounts. But these accounts have limits on how much can be paid each month, and the offers sometimes only last for a year.
The highest rate currently offered is that of NatWest’s regular digital saver. The account allows you to pay between £ 1 and £ 50 per month and you will earn 3% interest on the first £ 1,000 saved. Alternatively, the Newcastle Building Society pays 2 percent annual interest on regular savings of up to £ 200 per month for 12 months. But to get the deal, you need to open an account at one of its branches in the northeast.
If you’re saving to buy a home, you can open Virgin Money’s Home Buying Coach Regular Saver, which pays 1.75% annual interest on a maximum monthly deposit of £ 250 over 14 months.
Premium bonds, managed by the government-backed NS&I, pay no interest. But you have the chance to win tax-free monthly cash sums of between £ 25 million and £ 1million. Each bond is worth £ 1 and you can hold between £ 25 and £ 50,000. The higher the amount you have invested, the better your chances of winning.