Best savings account?

Raymond Lin · 3 Aug 2023 at 23:40

Personally, once I have maxed out savings for ISA and normal accounts I would look into pay more tax through work pension (so it’s taken pre tax) or put it into SIPP or index fund.

I mean ISA gives you £20k a year allowance, that’s enough for most emergency from temporary car, new boiler.

djcj · 4 Aug 2023 at 02:48

Starling bank has increased its one year fixed savings rate to 5.25%

Starling Bank hikes fixed savings rate to 5.25%

Starling Bank has hiked the rate on its fixed savings which has shot up from 3.25% to 5.25% - but how does it compare to the rest of the market?

moneyweek.com

Bint Box · 4 Aug 2023 at 05:56

Bint Box said:
Ford money are offering 4.41% gross with easy access.
Coventry BS are offering 4.22% gross with easy access

After yesterdays BoE rate increase, Coventry BS have increased the rate on their Online Saver account to 4.45%

Gixer · 4 Aug 2023 at 05:58

ljt said:
The vast majority will be on £1000 interest tax free as basic rate tax though. So that's 25k @ 4%

The £500 will be for higher rate tax payers.

Although I agree, the limits should still be higher to encourage saving.

Like I am. With the current highest 1year fixes though, which are above 6%, I'll only have to drop £16500 into the account to make the £1k interest. Leaving the rest for a fixed cash ISA deal or maybe a Stocks and Shares ISA (Vanguard? - unsure whether I want to take the risk yet).

Gibbo · 4 Aug 2023 at 07:28

Well they took their time but COOP Instant access saver is now at 5%

iron_monkey · 4 Aug 2023 at 07:52

Still waiting on chip...

EvilRob · 4 Aug 2023 at 08:12

Mekrel said:
'Some', as already mentioned, the money was taxed in the first place.

So what are you doing instead? Not earning any interest to avoid paying tax on interest :confused:

200sols · 4 Aug 2023 at 08:13

Mekrel said:
'Some', as already mentioned, the money was taxed in the first place. I just find it interesting how these rate rises really aren't that beneficial to people because of the PSA and ISA limitations. You lose at the one end on your mortgage, but barely benefit at the other. I get not encouraging people to spend during these times but I'm struggling to understand why saving isn't encouraged. Why wouldn't saving be encouraged when the whole purpose of trying to bring inflation under control is to reduce demand/spending?

Ways to avoid as already mentioned, its generally better for the economy if the money is productive after you have a buffer.

Raymond Lin · 4 Aug 2023 at 08:37

iron_monkey said:
Still waiting on chip...

Mine has arrived about 3hrs ago.

tom_e · 4 Aug 2023 at 08:44

Raymond Lin said:
Mine has arrived about 3hrs ago.

Assuming he means the rate bump.

iron_monkey · 4 Aug 2023 at 08:54

tom_e said:
Assuming he means the rate bump.

Yes, deposit went straight through yesterday. Hoping for a rate increase soon.

MichaelAwkward · 4 Aug 2023 at 09:01

Bint Box said:
After yesterdays BoE rate increase, Coventry BS have increased the rate on their Online Saver account to 4.45%

Going to 4.8% on their Four Access one too, if you probably won't need to touch it.

Mekrel · 4 Aug 2023 at 11:04

EvilRob said:
So what are you doing instead? Not earning any interest to avoid paying tax on interest

Clearly 60% of something is better than nothing. What I'll be doing is comparing the interest rate after tax vs likely returns of other tax free wrappers such as premium bonds.

Bint Box · 4 Aug 2023 at 11:36

Shawbrook are offering 4.53% monthly on their issue 36 instant access savings account.

For older savings issues launches from Shawbrook the interest rate can lag behind, with the best rate being offered only on the latest issue.
However, a quick phone call to them gets the saver up to the latest rate. I just had mine updated to issue 36 rates today.

Eddie99 · 4 Aug 2023 at 14:42

djcj said:
Starling bank has increased its one year fixed savings rate to 5.25%

Starling Bank hikes fixed savings rate to 5.25%

Starling Bank has hiked the rate on its fixed savings which has shot up from 3.25% to 5.25% - but how does it compare to the rest of the market?

moneyweek.com

That's rubbish, you can 6.05% for a 1 year fix.

uscool · 4 Aug 2023 at 14:56

Come on chip do something

NotAGolf · 7 Aug 2023 at 22:01

Tandem are offering 5% easy access according to MSE. Not read into it yet, but the only downsides on first glance is that you have to manually tap a button to increase the rate from 4.65 to 5.0 (wtf?!), and that the 0.35% boost only applies for a year.

Very tempting, but I've never heard of them.

Shawbrook are offering 4.63% but it sounds like you have to get in touch to request moving to a new product every time they offer higher rates, which is a bit of a pain.

Chip get a good rep on here, but are lagging at 4.51%.

iron_monkey · 7 Aug 2023 at 22:12

Why are we waiting, chips interest is not inflating :cry:

Disco_P · 8 Aug 2023 at 09:14

NotAGolf said:
Tandem are offering 5% easy access according to MSE. Not read into it yet, but the only downsides on first glance is that you have to manually tap a button to increase the rate from 4.65 to 5.0 (wtf?!), and that the 0.35% boost only applies for a year.

Very tempting, but I've never heard of them.

Shawbrook are offering 4.63% but it sounds like you have to get in touch to request moving to a new product every time they offer higher rates, which is a bit of a pain.

Chip get a good rep on here, but are lagging at 4.51%.

For such a significant jump, it's certainly very tempting. There are a couple things I like about chip, such as card deposits and the daily update of interest earned so I will give them a week to get their rate up

Tandem do also seem to get better reviews than chip on trustpilot, though the chip reviews don't make a lot of sense to me

~Mike~ · 8 Aug 2023 at 11:20

There are quite a few easy access accounts that now beat Chip, going to be interesting to see what they do now as they don't seem to be upping the rate quite so quickly.