Best savings account?

[Raymond Lin]

I think sooner or later, if you have £20k savings you will be able to get like £80 a month from interests alone (at 5%), which makes Premium bonds much less attractive. That is almost £1k a year, which is still under the threshold before any tax.

 

[Minstadave]

I'm the same, 20k in a basic almost zero interest Barclays saver just sat there. I hope to build it some more but will want to access it within 12 months I'm sure.

Fingers crossed for a decent rate on instant access soon. Where's the best place to be in the know about these things?

Hotukdeals is pretty good. I got the Santander 2.75% instant access deal from there. Will be moving it over to a fixed term ISA once rates have settled.

 

[BUDFORCE]

Hopefully banks and building societies will start getting competitive on savings rates. My NatWest ISA is paying 0.5% which is ridiculous really.

I'm guessing it will start happening soon.

 

[Hagar]

Hopefully banks and building societies will start getting competitive on savings rates. My NatWest ISA is paying 0.5% which is ridiculous really.

I'm guessing it will start happening soon.

Skipton BS is also poor. Much better for a mainstream society is Yorkshire who have been low with near zero bank rates but now seem to be constantly upping returns in line with the rising rates.
We will never match current inflation but I would be content at about 3% -as inflation falls towards that level net year. One can but hope.

Is any prediction by the bank of England ever going to be proved right.

 

[NotAGolf]

I think sooner or later, if you have £20k savings you will be able to get like £80 a month from interests alone (at 5%), which makes Premium bonds much less attractive. That is almost £1k a year, which is still under the threshold before any tax.

That's only under the threshold if you pay tax at the 20% rate. If you're a higher earner, then you will pay tax on some of that interest. Thats one of the upsides of premium bonds - no tax due.

Also premium bonds have bumped up their 'savings rate' (or whatever they call it) a couple of times recently. Yes they still lag behind a few easy access savings accounts, but if those accounts keep offering higher interest then I'd expect premium bonds to bump theirs up a bit too to stay relatively competitive.

 

[Slam62]

Savings rates are only going one way, they seem to favour limited time offers at the moment so get ready to move.

Way back I had a tracker mortgage with barclays, the interest they charged me on my mortgage was less than they gave on my cash isa. Literally paying me to borrow.

 

[Raymond Lin]

That's only under the threshold if you pay tax at the 20% rate. If you're a higher earner, then you will pay tax on some of that interest. Thats one of the upsides of premium bonds - no tax due.

Also premium bonds have bumped up their 'savings rate' (or whatever they call it) a couple of times recently. Yes they still lag behind a few easy access savings accounts, but if those accounts keep offering higher interest then I'd expect premium bonds to bump theirs up a bit too to stay relatively competitive.

Yes, which was why i pointed out the threshold in case someone points out back to me. lol

I thought i could pre-empt it.

 

[413x]

Anyone know of anything better than 400 a month regular saver at 5.25pc from lloyds?

I need the easy access at the moment but would much rather put In a lump sum

 

[BurningHorizons]

Whilst not leading rate, Zopa have been consistently putting up their rates with each base rate change. This is unlike many others who lead for a bit but are then slow to react on future rises. They might be worth a look.

 

[Uther]

A guaranteed 5% savings account could well be better than the stock market for the next couple of years. Interesting times.

 

[ci_newman]

Hotukdeals is pretty good. I got the Santander 2.75% instant access deal from there. Will be moving it over to a fixed term ISA once rates have settled.

I follow UKPersonalFinance on Reddit as a good source too

 

[Amos91]

Looking at a 1 year fixed savings account at the moment. Virgin are doing 4%, has anyone seen any better?

This is for about £140k so ideally one that supports a lump sum rather than monthly deposits.

 

[Karl]

Looking at a 1 year fixed savings account at the moment. Virgin are doing 4%, has anyone seen any better?

This is for about £140k so ideally one that supports a lump sum rather than monthly deposits.

Do you reckon an ISA would suit you, what with the tax implications of earning so much interest?

 

[Amos91]

Do you reckon an ISA would suit you, what with the tax implications of earning so much interest?

Yes potentially, I can split the total amount with the wife and it should be under the personal savings allowance for the year.

EDIT: Having just done some reading on tax, you're right, that would be the best bet.

 

[Freakbro]

Anyone know of anything better than 400 a month regular saver at 5.25pc from lloyds?

I need the easy access at the moment but would much rather put In a lump sum

You have to be slightly careful with these monthly savers that offer a seemingly high % rate, as over the year it's lower due to the restrictive amount.

ie : 5.25% of £400 per month (accumulated) works out at 136.50 interest in the year, which on 4800 works out at 2.84%

So if you had a lump sum (of £4800) to put away in one go rather than trickle it in, you'd do better with any savings account over 2.84%.

 

[Freakbro]

Looking at a 1 year fixed savings account at the moment. Virgin are doing 4%, has anyone seen any better?

This is for about £140k so ideally one that supports a lump sum rather than monthly deposits.

Atom Bank is offering 4.35% for 1 yr.

Thiough I tend to keep below the FSCS of £85k in any sole bank.

 

[413x]

You have to be slightly careful with these monthly savers that offer a seemingly high % rate, as over the year it's lower due to the restrictive amount.

ie : 5.25% of £400 per month (accumulated) works out at 136.50 interest in the year, which on 4800 works out at 2.84%

So if you had a lump sum (of £4800) to put away in one go rather than trickle it in, you'd do better with any savings account over 2.84%.

Yes I'm aware. And this morning did the same sum.

I think ill hold out for a 3pc+ lump sum easy access account.

To be fair Lloyd's did say the interest over a year at 400ppm would be 190gbp ish.

But yes. A 3pc lump sum beats it.

I may have 10k to put in too. So may just be easier to wait for a better unrestricted account. Especially as rates are rising.

 

[LeeUK]

Anyone remember Icesave back in the pre-credit crunch days with 9% interest? Those were the days, hope they are coming back (high savings interest, not Icesave).

 

[Mercenary Keyboard Warrior]

You have to be slightly careful with these monthly savers that offer a seemingly high % rate, as over the year it's lower due to the restrictive amount.

ie : 5.25% of £400 per month (accumulated) works out at 136.50 interest in the year, which on 4800 works out at 2.84%

So if you had a lump sum (of £4800) to put away in one go rather than trickle it in, you'd do better with any savings account over 2.84%.

Unless its fixed you put the total amount in a lower rate savings account and draw out enough to fill the regular saver monthly.

When you consider the 12 month period each account would pay half the headline rate.
Eg 4800 in a 5% account pays half of £240 = £120
The same 4800 in a 2% account pays half of £96 = £48
Total is £168 is 3.5% which you can shortcut to (5%+2%)/2 = 7%/2 = 3.5%

 

[dlockers]

Anyone remember Icesave back in the pre-credit crunch days with 9% interest? Those were the days, hope they are coming back (high savings interest, not Icesave).

You forget too easily. Boycott Iceland.