As NS&I cuts interest rates for savers, here are the UK savings accounts with the highest returns


With NS&I’s rate cuts on a number of products next month, savers may be looking for other places to store their money.The advantage of NS&I (National Savings and Investments) is that all savings held within the supplier are guaranteed by the Treasury. This contrasts with other banks and finance providers, where up to £ 85,000 in savings are guaranteed per person in the event of a licensed financial services firm going bankrupt.

Savers can invest up to £ 2million in select NS&I savings products, which can be a useful place for savers looking to store large amounts of cash.

Nonetheless, with the reduction from 0.9% to 0.1% in interest on NS & I’s direct Isa from November 24, and the interest on its income bonds falling from 1.15% at 0.01%, the time may have come to look elsewhere.

Below, we round up the top current savings products, using data from the financial comparison site Moneyfacts *.

Easy access accounts

The Coventry Building Society Dual Access Account pays annual interest of 1.05 percent on savings of between £ 1 and £ 250,000.

However, the account has limits on withdrawals and the money is only accessed twice a year. Other withdrawals can be made but will be subject to a charge equivalent to 50 days of interest. A deposit of £ 1000 would increase to £ 1010.50 at the end of the year.

Other accounts include Yorkshire Building Society’s Internet Saver Plus, which pays annual interest of 0.95 percent on balances over £ 10,000, and 1 percent on savings of over £ 50,000.

The account allows unlimited instant withdrawals without loss of interest.

Isa is Cynergy Bank’s online Isa, which pays interest from 1 percent. The account allows free withdrawals and transfers are accepted from Isas cash held elsewhere.

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Fixed term accounts

Fixed-term savings accounts are suitable for people who are willing to tie up their money for a period of time, typically one to five years. They pay a fixed interest rate during this period, with early withdrawals either prohibited or subject to fees.

The highest rates come from the Bank of London and the Middle East (BLME). It is a Sharia-compliant bank that pays a target rate of profit rather than a fixed interest rate. The current expected rate of profit is a 1.6 percent for his five-year fixed account.

A deposit of £ 1,000 would increase to £ 1,080 after five years. Savers can pay between £ 1,000 and £ 1 million. No early withdrawal is allowed.

Elsewhere, Close Brothers pays interest of 1,30% one year on its five-year fixed bond. At least £ 10,000 must be paid, up to a maximum of £ 2million.

Gatehouse Bank, another Sharia-compliant bank, pays expected profit of 1,36% on deposits of £ 1,000 to £ 85,000 for his two-year fixed account.

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Monthly interest accounts

These are favored by savers who wish to receive interest payments each month. They are particularly popular with people who have retired and are looking for a fixed income.

One of the highest rates is offered by Aldermore Bank, which pays annual interest of 1.10 percent on his 120 day notice account.

As the name suggests, withdrawals are allowed but 120 days notice must be given. Savers must pay at least £ 1000 and can pay a maximum of £ 1million. Interest can be paid monthly or annually. A deposit of £ 50,000 would earn interest of £ 550 over a year, or almost £ 46 per month.

Meanwhile, RCI Bank has a three-year bond with an annual interest rate of 0.95 percent, which can be paid monthly. Between £ 1,000 and £ 1 million can be donated.

* Data correct as of 10/01/20


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