COMPARE ALL UK SAVINGS ACCOUNTS

West Brom BS Direct Access Account 3

This account pays 3.13% annual interest before tax - but only if you have £10,000 to invest.

There is no notice period on the account, so you can access your money whenever you want.  You must invest a minimum of £10,000 into the account. The headline rate applies to balances between £1.00 and £100,000.

The maximum that can be held in this account is £100,000, but if you plan to invest this much, bear in mind that only the first £85,000 will be protected by the Financial Services Compensation Scheme.

Savers can choose to receive interest either annually or monthly, which is useful for those looking to supplement their income.

You can only make a maximum of four withdrawals a year from the account, and if you make any further withdrawals you will be charged 90 days’ interest on the amount withdrawn. This will be deducted from your interest when it is paid. Transfers to other accounts are also considered withdrawals, except where you have arranged to have monthly interest paid to another account.

Access for this account is available via telephone or post only.  The application process is completed online, but downloaded application forms have to be returned by post.  Only one account, either single or joint, is permitted per customer.

There are a few of easy access savings accounts paying 3.10% of which this is one. There are other options which offer slightly higher rates of interest, but nevertheless this is a competitive account.

The headline rate is good at 3.10% although be prepared to move your money after the first year as it includes a 12-month bonus of 2.60%.

Interest is calculated daily and you can choose whether to have it paid monthly or annually. The monthly option will suit those looking to use their savings interest to supplement their income.

You can make unlimited penalty-free withdrawals and deposits and access your account 24 hours a day.

The total amount covered under the Financial Services Compensation Scheme will be £85,000 (£170,000 if the accounts are in joint names).

Virgin Easy Access E-Saver

Now that Northern Rock is part of Virgin Money, the bank has launched the first of a new range of Virgin savings accounts, including the Easy Access E-Saver account paying 2.85% annual interest before tax.

While this rate is competitive, there are easy access accounts available which pay higher returns. On the plus side, there are no restrictions on the number of withdrawals you can make, so you can get access to your savings at any time. You can also make deposits into the account, which is operated online only, whenever you want to. There is also a branch and postal version of the account available.

The account can be opened with a minimum investment of just £1.00, and the maximum you can hold overall is £100,000. Bear in mind, however, that if you do plan to deposit a large lump sum, only the first £85,000 will be protected by the Financial Services Compensation Scheme.

Interest is paid annually, but there is also a monthly interest option paying a marginally lower rate of 2.82% which may be useful for savers looking to supplement their income.

You must be aged at least 16 and a UK resident to apply for this account, which can be held either individually or jointly.

Allied Irish Bank (GB) Savings Direct 1 Year Fixed Rate Bond

This one-year fixed rate account pays a very competitive 3.50% annual interest – just short of the current market-leading rates over the same period.

Paying more than six times the current Bank of England base rate, this account is an appealing option for savers seeking decent returns but who don’t want to lock up their money for too long in case interest rates start to rise soon.

You can open the bond with a minimum investment of £1,000, but you cannot make any subsequent deposits after this, so make sure you pay in the maximum amount you want to at the outset.

The maximum amount you can invest is £2 million, but if you are planning on paying in a large lump sum, remember that only the first £85,000 is protected by the Financial Services Compensation Scheme (FSCS). Interest will be added to the account at maturity.

Make sure you can afford to leave your money untouched for the full one-year term as you are not allowed to make withdrawals. The bank does, however, say it will consider withdrawals in ‘exceptional circumstances’ but even then any money taken out will be subject to an interest charge.

The account is available by post or telephone.

Allied Irish Bank (GB) Savings Direct 2 Year Fixed Rate Bond

This account pays a highly competitive 3.90% annual interest rate before tax on a minimum investment of £1,000.

While this is not a market-leading rate, it is only a fraction lower than those at the top of the table over the same time-frame. Interest is calculated daily and added to the Bond on each anniversary and at maturity.

The maximum you can invest in the account is £2m, although if you are planning on investing a large lump sum, bear in mind that only the first £85,000 will be protected by the Financial Services Compensation Scheme.

Additional deposits are not allowed after you have opened the bond, so you will need to pay in the full amount you want to save at the outset. You cannot take any money out during the term of the account either, although the bank does say it will be allow withdrawals in exceptional circumstances, but they will be subject to an interest charge.

This account can be operated by post or telephone, and so will not suit savers who prefer to manage their money online.

Halifax 3 Year Fixed Online Saver

Halifax’s 3 Year Fixed Online Saver account pays 4.15% annual interest before tax on a minimum investment of £500.

While this rate is very competitive, it is possible to earn higher rates of interest with alternative three year fixed rate accounts.

Savers can, however, choose whether to receive interest annually or monthly, which can be useful for those looking to supplement their income.

The account can only be managed online, so it won’t suit savers who require branches or telephone access to their savings.

As with most fixed rate savings accounts, you cannot make withdrawals during the term of the account, so you must be certain you can afford to leave your money untouched for three years.

You can, however, close your account at any time if you need urgent access to your cash for any reason, but you will lose 270 days’ interest.

Halifax also offers one, two, four and five year Fixed Online Saver accounts, which pay 2.25%, 3.85%, 4.30% and 4.50% annual interest respectively. To be eligible to open any of these accounts, you must be a UK resident and aged 16 or over.

Nationwide Online ISA Issue 2

This internet-only cash ISA pays a competitive 3.10% annual interest tax-free on a minimum investment of £25,000 and 2.75% on balances between £1,000 and £24,999, but higher rates are available elsewhere.

To apply for this account you will need to hold a Nationwide card account and you must be aged 16 or over.

On the plus side, the account accepts transfers from other providers, so you can move money across from existing ISAs as well as paying in your maximum allowance of £5,340 this year.

The rate includes a fixed bonus until the end of January 2013, so you will need to move your money when the bonus disappears.

You can make withdrawals from this account whenever you want to, but bear in mind that if you invest the maximum permitted this tax year and take money out, you cannot subsequently top up the account. Remember too that any day your balance in this account drops below £1,000, you will earn a variable rate of just 0.25%.

As the account can only be opened and managed on line, it will not suit savers who want to be able to discuss their accounts via the telephone or in branches.

ING Direct Cash ISA

This account pays 3.00% annual interest tax-free for the first year. This rate is guaranteed for 12 months. After the first year, however, the rate reverts to ING Direct’s standard variable cash ISA rate which is 1.00%, so you may want to move your money then.

You can open the account with a minimum investment of £1.00 and the maximum you can invest this tax year is £5,340.

You can make withdrawals whenever you want, but bear in mind that if you invest your full allowance and then take money out, you cannot subsequently make any further deposits into the account that year.

The ISA can only be operated by internet or telephone, so it won’t suit those looking for branch access. Interest on this account is paid monthly, which could be useful for savers wanting to supplement their income.

The account does not accept transfers from existing ISAs. To open the ING Direct Cash ISA you must be a UK resident and aged 18 or over. ISAs cannot be held in joint names.

Virgin Easy Access Cash E-ISA

Now that Northern Rock is part of Virgin Money, the bank has launched the first of a new range of Virgin savings accounts, including this ISA paying 2.85% annual interest tax-free.

While this rate is competitive, there are alternative ISAs available which pay rates higher than 3.00%.

The ISA can be opened with a minimum investment of just £1.00 and is operated online. There is also a postal and branch version of this account.

The maximum amount you can pay in this tax year is £5,340, but the account also accepts transfers from existing ISAs.

The maximum you can hold overall is £2 million, but bear in mind that if you do plan to deposit a large lump sum, only the first £85,000 will be protected by the Financial Services Compensation Scheme. You can pay into the account whenever you want to, but if you exceed this year’s ISA investment limit – excluding any ISA funds transferred from other providers – your money will be returned to you.

You can make withdrawals from the account whenever you want. Remember, however, that if you have used your tax-free cash ISA allowance, then you cannot repay withdrawals back into the ISA until the following tax year, and then only within that tax year's ISA allowance.