Savings

Want to squeeze more out of your savings?

Use up your ISA allowance!

You can save up to £15,240 into a cash ISA before the tax year ends on April 5 – and you won’t pay a penny of tax on the interest you earn.  If you DON’T use your 2015-2016 allowance by then however, it will be gone for good.

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

  1. Market leading

    Market Leading 5 year fixed rate ISA

    Great for
    Transfers of your ISA subscriptions are allowed from any ISA provider
    Transfer-out can be made at the end of the term of the deposit
    The rate of interest is fixed for the entire period of the deposit and interest is paid tax free, that is free from UK Income Tax and Capital Gains Tax
    But be aware that
    Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes
    Transfer of the deposit can be made before the end of the term if 30 days’ notice is provided. There will be a loss of interest if early withdrawals/transfers are made
  2. 2015 SUPERS

    Winner of the best overall savings provider

    Great for
    Regular tax-free savings with no requirement to make monthly deposits
    Instant access to your savings (subject to your annual ISA allowance)
    But be aware that
    Maximum monthly net balance increase is £1,270 until 01 March 2016
    From 1 March 2016, the maximum monthly deposit limit will be removed and you can then deposit up to the annual ISA allowance
    Accepts new subscriptions only
  3. Great for
    The Online ISA account offers you the flexibility to spread your allowance across easy access and fixed rate products
    The flexibility to manage your money online 24/7 with unlimited penalty free withdrawals
    Ability to make additional deposits, transfer in your existing ISAs and move money between products
    But be aware that
    The Online ISA is provided by Family Investments. Savings in Post Office Money cash ISAs are deposited with Bank of Ireland UK
    If you wish to spread your ISA balance across both the variable and fixed rate accounts you will need to open the holding account first - this can easily be done as part of the online application
    A breakage charge will occur if you move money from the Fixed Rate account during the fixed term
  4. 2015 SUPERS

    Winner of the best overall savings provider

    Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually

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

  1. Great for
    Unlimited payments and withdrawals with no penalties
    7 day service and choice of monthly or annual interest
    Part of Renault’s global banking group
    But be aware that
    Because RCI Bank is French-owned, the first €100,000 of savers’ money - equivalent to £71,126 (correct as of 03.07.15) - is protected by French Deposit Guarantee Scheme, rather than the usual £85,000 protection offered by UK-owned banks
  2. Great for
    1.50% gross/AER variable which includes a fixed bonus of 1.00% for up to 12 months
    Opening 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. Your balance can drop below £1,000. If it does the rate will become 0.50% gross/AER variable for the period the balance remains below £1,000
    Must be 18 or above to be eligible
  3. Great for
    Start saving from £1 and pay money in as often as you like
    A choice between monthly or annual interest
    But be aware that
    Suitable for those who do not intend to make regular withdrawals
    If you make four or more withdrawals in a calendar year the rate reduces to 0.75% (AER) until the end of the year
    • Provider/Product name Internet Saver

      Tesco Bank

      Internet Saver

    • Interest rate (AER) 1.35% Variable Includes Fixed bonus of 0.60% 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

    Great for
    1.35% Gross/AER variable (includes a fixed bonus of 0.60% for 12 months)
    Opening and managing your account online
    Opening an 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

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

  1. Great for
    A choice between monthly or annual interest
    But be aware that
    Additional deposits, early account closure and withdrawals are not permitted within the fixed term
  2. Great for
    Online application and access
    A choice between monthly or annual interest
    FSCS protection up to £85,000 per depositor
    But be aware that
    Withdrawals are not permitted within the fixed term
  3. Great for
    UK based bank with FSCS protection
    A choice between monthly or annual interest
    Supported by a dedicated UK based customer service team
    But be aware that
    Additional deposits and withdrawals are not permitted within the fixed term

Could your money be working harder in a current account? Earn up to 5.00% AER variable on limited balances, 100% easy access to your cash.

Benefit from perks such as cashback on spending and protection under the Current Account Switch Guarantee.

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

 

Savings. Trust us to explain them simply

Easy access accounts

By  

It’s always a good idea to have some savings readily available in case of emergencies. Ideally, your ‘rainy day’ savings fund should amount to between three and six months’ income...

Understanding Interest

By  

When you deposit savings with a bank or building society you will be paid interest on the money. How much interest you earn will partly depend on...

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.

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.

However, this will change from April 2016 when basic-rate taxpayers will be able to earn £1,000 of savings interest without the taxman taking a slice, and higher rate taxpayers will be able to earn £500.

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 £15,240 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 account. 

In November 2011, the Junior ISA was born. Parents, relatives and friends can invest up to £4,080 each year into a Junior ISA and the money grows tax-free until the child reaches 18.

Are there any catches with savings accounts?

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 1.5%, 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 0.5%.

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.

How our site is paid for

We like being straightforward at MoneySuperMarket, so we want to let you know how we get paid. 

How do we make money on savings accounts at MoneySuperMarket?

When someone applies for a savings account through MoneySuperMarket, the bank or building society that runs that account will usually pay us a fee. 

We don’t work directly with all banks and building societies, so we don’t make any money from some of the savings accounts we show. 

Do we offer the ‘whole of market’ on savings accounts?

We try to, but not every bank or building society offering savings accounts wants to be on our site. 

We include as many savings accounts as we can on MoneySuperMarket – including accounts from banks and building societies we work with and those we don’t.

You can apply for savings accounts from banks and building societies we work with by clicking ‘Go to site’. If you’d like to apply for a savings account from a company we don’t work with, you may have to go to their website directly.

The accounts in our ‘featured’ lists are from banks and building societies we work with.

You can choose to ‘see all’ the savings accounts on our site, or go here to see all the accounts.

How do our relationships with banks and building societies affect our service to you?

We never allow banks and building societies to get in the way of what’s best for our customers. So we always display savings accounts by their benefits to you – such as the best interest rate – never by what’s best for a bank or building society. 

Why are we telling you this?

Our services are always free to you, our customers. But we think it’s important that we’re transparent about how we earn money, so you can be confident we put our customers first.

 

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