Savings

Cash ISAs - tax free savings - featured accounts - ordered by rate (AER)

    • Provider/Product name ISA Extra (Issue 11)

      BM Savings

      ISA Extra (Issue 11)

    • Interest rate (AER) 1.55% Variable Includes Fixed bonus of 1.05% for 12 months
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Market leading

    Market leading transfer in ISA!

    Great for
    1.55% Tax free/AER variable (includes a fixed bonus of 1.05% for first 12 months)
    Unlimited withdrawals and deposits up to the ISA allowance of £15,000 for the 2014/15 tax year (less any amount invested in a stocks & shares ISA this tax year) plus transfers in from previous tax years
    Apply online or via telephone. Monthly interest available at lower rates
    But be aware that
    After 12 months, variable rate without bonus will apply, currently 0.50% tax free/AER.
    Monthly interest cannot be paid back to the account
    Once you've paid in your full years ISA allowance you cannot replace any money you've withdrawn in the same tax year
    • Provider/Product name Premier Cash ISA Issue 7

      Post Office

      Premier Cash ISA Issue 7

    • Interest rate (AER) 1.55% Variable Includes Fixed bonus of 0.80% for 18 months
    • Min/Max opening amount £100 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Download an application form and apply by post
    Transfers in from other ISAs are accepted, subject to your current provider who may charge a fee
    Currently the maximum allowance is £15,000
    But be aware that
    Premier Cash ISA is provided by Family Investments. Money in Post Office Cash ISAs is deposited with Bank of Ireland UK
    Minimum withdrawal amount is £10 and you are limited to two withdrawals per tax year. Interest is paid annually in March
    After 18 months, the variable rate without bonus will apply, which is currently 0.75% tax free/AER
    • Provider/Product name Instant Access Cash ISA

      Tesco Bank

      Instant Access Cash ISA

    • Interest rate (AER) 1.45% Variable Includes Fixed bonus of 0.20% for 12 months
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Opening your account with just £1
    Those with a previous cash ISA to transfer
    Unlimited withdrawals without penalties
    But be aware that
    After 12 months, the variable rate without bonus will apply, which is currently 1.25% tax free / AER
    • Provider/Product name Cash ISA

      Sainsbury's

      Cash ISA

    • Interest rate (AER) 1.45% Variable
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Unlimited withdrawals without penalties

Fixed rate bonds - Maximise your savings by fixing - featured accounts - ordered by term then rate (AER)

  1. Great for
    Interest paid on a semi-annual basis
    FSCS protected - £85k per person
    Applying online
    But be aware that
    No funds transferrable in or out of account
  2. Great for
    Quick and simple online application
    Long term savers
    Vanquis are a UK based bank with full FSCS protection
    But be aware that
    No withdrawals allowed within the term and no additional contributions permitted

Easy access - ideal for those who need regular access - featured accounts -ordered by rate (AER)

    • Provider/Product name AA Internet Extra (Issue 16)

      AA

      AA Internet Extra (Issue 16)

    • Interest rate (AER) 1.40% Variable Includes Fixed bonus of 0.90% for 12 months
    • Min/Max opening amount £1,000 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    1.40% gross/AER variable (includes a fixed bonus of 0.90% for up to 12 months)
    Applying and managing your account online
    Interest paid annually
    But be aware that
    After 12 months, interest will revert to the variable interest rate without bonus, currently 0.50% gross/AER variable
    Minimum opening deposit must be for at least £1,000. The ongoing balance can drop below £1,000 but if it does the rate will become 0.50% gross/AER variable for the period the balance remains below £1,000
    • Provider/Product name Online Saver Issue 12

      Post Office

      Online Saver Issue 12

    • Interest rate (AER) 1.40% Variable Includes Fixed bonus of 0.65% for 12 months
    • Min/Max opening amount £1 to £2,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Having access to your savings 24/7 with free unlimited withdrawals
    Make deposits to your Online Saver whenever you like by logging on to the Post Office online banking service
    Control - pick from annual or monthly interest - annually in March or monthly on the first business day of each month. Rates vary depending on when you choose to receive interest
    But be aware that
    Online Saver is provided by Bank of Ireland UK
    Annual interest option shown includes a 0.65% gross fixed bonus for the first 12 months. After this time, the rate will revert to the underlying rate, currently 0.75% gross/AER variable
    • Provider/Product name Internet Saver

      Tesco Bank

      Internet Saver

    • Interest rate (AER) 1.40% Variable Includes Fixed bonus of 0.65% for 12 months
    • Min/Max opening amount £1 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Unlimited withdrawals

    Unlimited penalty free withdrawals

    Great for
    1.40% Gross/AER variable (includes a fixed bonus of 0.65% for 12 months)
    Applying and managing your account online
    Opening your account with just £1
    But be aware that
    Rate includes a bonus, you may want to move your money at the end of this period
    • Provider/Product name eSaver Special

      Sainsbury's

      eSaver Special

    • Interest rate (AER) 1.35% Variable
    • Min/Max opening amount £1,000 to £100,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Unlimited withdrawals

    Unlimited penalty free withdrawals

    Great for
    Unlimited penalty free withdrawals
    Managing your account online
    A quick and easy online application
    But be aware that
    A lower rate of interest will apply if the account balance falls below £1,000

Be smart with your savings and earn 3% AER by using a CURRENT account

For the highest easy access savings rate, you need to use a current account. There are a couple of things people don’t like about doing this, so to warn you upfront.

• There’s a £2/month fee - but interest from sizeable savings should outweigh this.

• You need to pay in £500 per month, and have two direct debits set up from the account - for most people, this means using it as your main bank account.

If these don’t put you off, it can seriously boost the returns you get on your savings.

The Santander 123 Current Account

  1. Great for
    Higher interest than standard savings - 3% AER with easy access, from £3,000 to £20,000 balance. Cashback on your Direct Debits:
    3%: on mobile, home phone, broadband & paid for TV packages. 2%: on gas and electricity bills
    But be aware that
    You must use it like a current account – including paying in £500 per month, and setting up at least two Direct Debits
    There is also a £2 monthly fee

Not sure what account is right for you? Use our Savings Decision Tree to help you decide!

 

Savings. Trust us to explain them simply

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Easy access accounts

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Saving for retirement

Saving for retirement is essential if you want the financial freedom to enjoy your later years. The State Pension is currently worth a maximum of £113.10 a week.  

And even though it generally increases slightly every year, it is highly unlikely to provide the income you need to maintain a comfortable standard of living once you have stopped working.

Guide to savings

Savings Guides

Money is tight so it’s more important than ever to get a good deal on your savings, whether you are putting money aside for a holiday or for your children’s future. But it’s not always easy to find the right savings account. Interest rates are relatively low, but inflation is comparatively high – and high inflation eats into savers’ returns.

The number of savings accounts on offer can also make it difficult to choose the best deal. But if you read our guide to savings and use the MoneySuperMarket website to compare all types of account, it should be simple to find a top rate. You can also work out how much interest you’ll earn by using a savings calculator.

Read more

Just remember that you need to regularly monitor your rate and maybe even switch your account to make sure your cash is always working hard.

How do I choose a savings account?

Savers can often be overwhelmed by the range of accounts on the market, all with different rates and different rules. Some people simply select the account that pays the highest rate of interest. But it’s important to look beyond the headline rate at the terms and conditions of the account. You might, for example, be able to earn 5% in a regular savings account, but if you cannot put money aside each and every month, the account is not for you.

Instant or easy access accounts are the most straightforward - and the most flexible - because you can usually deposit and withdraw your cash pretty much when you like.

If you think you might be tempted to dip into an easy access account, a notice account might be more suitable because you have to give notice of any withdrawals. The notice periods vary, but can be as long as 120 days. Always compare the rates on notice accounts against easy access deals. Notice accounts traditionally paid higher rates of interest than easy access accounts, because of their inflexibility. But these days, you can often earn more with easy access.

You might be able to earn a higher rate of interest in a fixed-rate account, sometimes called a bond. The accounts pay a fixed rate of interest for a set term, usually between one and five years, and can be ideal if you are saving for an event in the future. But watch out for penalties. If you withdraw any money before the term of the bond expires, you usually forfeit interest.

A number of banks and building societies offer regular savings account that demand a monthly commitment, usually for one year. The amount you can save in a regular account is also limited to a maximum of about £300 a month.

Older savers might be able to earn preferential rates in over 50s accounts. Interest on children’s accounts can also be high to tempt even the very youngest savers to open an account. If you need an account that accepts sterling, Euros or dollars, you might want to consider an offshore account. They can be useful if you are paid in another currency or you earn additional income in a foreign currency, perhaps from a rental property overseas.

You may also be looking for a business savings account – business savings accounts are a great way to enjoy a higher rate of interest so that your cash is working harder for you and your business.

Are my savings taxed?

Her Majesty’s Revenue & Customs automatically swipes 20% tax off your savings. If you are a 40% or 45% taxpayer, you have to declare the savings interest on your tax return and pay any additional tax due.

Non-taxpayers, including children, should complete form R85, which is available from banks and building societies. The interest is then paid gross, before any tax is deducted. But beware the £100 rule. If the money in a child’s account is given by a parent, any interest over £100 is taxed as the parent’s own.

Are there any tax-free accounts?

A Cash ISA is just like an ordinary savings account, with one important exception – the interest is tax free. You can find out more about the current ISA allowance here. You can save up to £15,000 in a cash ISA in the current tax year and you can choose from a range of different accounts, including easy access ISAs and fixed-rate ISAs.  Taxpayers should almost always put money in an ISA, ahead of a standard savings accounts. 

In November 2011, the Junior ISA was born. Parents, relatives and friends can invest up to £4,000 each year into a Junior ISA and the money grows tax-free until the child reaches 18.

Are there any catches with savings account?

Short term bonuses

Many of the top rate accounts include an introductory or short term bonus. For example, an account might advertise a headline interest rate of 3%, which includes a bonus of one percentage point for one year. In other words, after 12 months, the rate on the account will drop to 2%.

The bonuses help to propel the accounts into the best buy tables, but they can work to the savers’ advantage – as long as you are prepared to search for a better deal when the bonus expires.

Deposit and withdrawal restrictions

Some accounts restrict the amount you can save, or the amount or frequency of any withdrawals. You have to make sure you don’t breach the limits otherwise you could lose interest.

Online access

It’s usually cheaper for a bank to offer internet accounts than branch based deals, so you can often earn a higher rate of interest if you manage your account online.

When is interest paid?

Interest on savings accounts is usually paid either monthly or annually. It’s probably best to opt for annual interest, unless you expect frequently to dip into your funds.

Are my savings safe?

The tough economic conditions have made savers wary of even the biggest banks in the world. But if your bank or building society goes bust, as long as it is regulated by the Financial Services Authority, the first £85,000 of your money is guaranteed under the Financial Services Compensation Scheme. If you have a lot of savings and are you are particularly nervous, you should therefore make sure you don’t deposit more than £85,000 with one institution.

 

How our site works

  1. Tell us which type of savings account you're interested in
  2. Use our simple savings account search if you’re unsure of the best account type
  3. You can choose the account that suits you best and apply online through the provider

Why are we the best website for savings comparison?

Simply because we offer a free, independent and whole of market view. That’s all savings accounts in one place.

MoneySuperMarket is rated 4.8/5 based on 2,944 reviews from the last 12 months. Read our reviews.

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