By: Rimi
Published on: Mar 21, 2025
The Bank of England’s (BoE) decision to hold the base interest rate at 4.5% in March 2024 has created a silver lining for UK savers. While homeowners grapple with elevated mortgage rates, savings accounts now offer rates that outpace inflation, currently at 3%. This guide dives into the best cash-saving deals available today, helping you maximize returns in a dynamic financial landscape.
With inflation easing but still above the BoE’s 2% target, securing a savings account that beats price rises is critical. Experts like Alice Haine, personal finance analyst at Bestinvest, emphasize:
“Savers must act quickly to lock in competitive rates before potential rate cuts later this year. Don’t let your money languish in low-yield accounts.”
Victor Trokoudes, CEO of Plum, adds:
“Smaller banks and fintechs often offer better rates than high-street giants. Pair this with a cash ISA to shield interest from tax.”
Whether you prioritize flexibility or higher returns, this breakdown of fixed-rate, easy-access, notice accounts, and regular savings deals ensures you find the right fit.
Fixed-rate accounts offer guaranteed returns for a set term (1-5 years), ideal for disciplined savers.
Cynergy Bank:
Rate: 4.60% AER (1-year term)
Deposit: £1,000–£1,000,000
Interest paid at maturity.
Secure Trust Bank:
Rate: 4.60% AER (1-year term)
Deposit: £1,000–£1,000,000
Vanquis Bank:
Rate: 4.60% AER (1-year term)
Deposit: £1,000–£250,000
High-Street Option:
Tesco Bank: 4.40% AER (1-year term), £2,000 minimum.
Why Choose Fixed-Rate?
Predictable returns unaffected by rate fluctuations.
Ideal for long-term goals (e.g., home deposits, education).
Easy-access accounts allow unlimited withdrawals, perfect for emergency funds. Rates are variable but remain competitive.
Sidekick:
Rate: 4.84% AER (includes 0.8% bonus for 12 months)
Withdrawals: Unlimited, next-day access.
Deposit: Up to £35,000.
Monument Bank:
Rate: 4.75% AER
Deposit: £25,000–£2,000,000
Withdrawals: Limited to 3/year.
Vida Savings:
Rate: 4.63% AER
Deposit: £10–£85,000
Withdrawals: Up to 4/year.
Exclusive Deal:
Santander Edge Saver: 6% AER (for current account holders only).
Tip: Always check withdrawal limits, as exceeding them could slash your rate.
Notice accounts require advance warning (30–185 days) for withdrawals, offering slightly higher rates than easy-access options.
Santander via Prosper:
Rate: 4.83% AER (185-day notice)
Deposit: £20,000–£250,000
Oxbury Bank:
90-Day Notice: 4.80% AER
60-Day Notice: 4.76% AER
35-Day Notice: 4.65% AER
Deposit: £1,000–£500,000
Best For: Savers who can plan withdrawals in advance.
These accounts reward consistent saving habits with rates up to 8%, though limits apply.
Principality Building Society:
Rate: 7.5% AER (6-month term)
Monthly Deposit: Up to £200
The Co-operative Bank:
Rate: 7% AER (1-year term)
Monthly Deposit: Up to £250 (existing customers only)
First Direct:
Rate: 7% AER
Monthly Deposit: £25–£300
Catch: Most top-tier rates require you to hold a current account with the provider.
Cash ISAs offer tax-free interest, making them indispensable for higher-rate taxpayers.
Top Cash ISA Rates:
Cynergy Bank: 4.60% AER (1-year fixed)
Virgin Money: 4.25% AER (easy-access)
ISA Allowance 2024/25: Save up to £20,000 tax-free.
Compare Rates Regularly: Use tools like MoneySavingExpert or savings calculators.
Diversify: Split savings between fixed and easy-access accounts.
Check FSCS Protection: Ensure your provider covers up to £85,000 per institution.
Beware of Introductory Bonuses: Some rates drop after 12 months.
While the BoE’s rate hold stabilizes savings returns, economists predict potential cuts in late 2024. Locking in fixed-rate deals now could safeguard against lower returns later.
Q: Should I choose a fixed or easy-access account?
A: Fixed for long-term goals; easy-access for emergency funds.
Q: Are online banks safe?
A: Yes, if FSCS-protected.
Q: Can I switch accounts penalty-free?
A: Most allow transfers, but check terms for fixed-rate exits.
The BoE’s rate decision has kept savings rates competitive, but procrastination could cost you. Whether you opt for a fixed-rate bond at 4.6% or a regular saver at 7.5%, acting now ensures your money works harder in 2024.
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