If you’ve got some spare cash sitting around in a high street bank savings account, now might be a good time to move it to somewhere more rewarding.
Savings rates have soared during the last 18 months and, even though rates are drifting lower following the August and November base rate cuts, you can still earn up to 4.75% interest and have immediate access to your savings balance in case you need it for an unexpected expense.
If you’re happy to give a few months notice to access your cash, then the rates are even higher, 4.84% the current best buy deal from Investec Bank.
These savings rates are likely to fall back in the coming months with experts predicting that the Bank of England will cut rates further between now and spring 2025.
To bag the highest rates it means locking your cash away for a term of between 1-5 years – just be sure you won’t need access to your cash as once you sign up you can’t get your hands on it until it matures.
Opening a new account is very quick and straightforward if you do it online – once you’ve got your account open, switch the funds from your old bank and you’ll be earning a decent rate straight away. (Rates correct as at 11th December 2024).
Gatehouse Bank 4.75% – Easy Access
Cynergy Bank 4.50% – Instant Access
Aldermore 4.55% – Double Access Savings
Investec Bank 4.84% – 90 days notice
Cynergy Bank 4.70% – 120 days notice
Charter Savings Bank 1 Year Fixed Rate Bond 4.59%
United Trust Bank 2 Year Fixed Rate Bond 4.61%
Deposits with the above providers are protected up to a total of £85,000 per individual by the Financial Services Compensation Scheme (FSCS), the UK’s deposit protection scheme
