Savings

 

Whatever you’re saving for, it’s important to make sure your money is working as hard as possible. But it’s not always easy to choose the right savings account.

These are the best accounts available to open through MoneySuperMarket. We can show you all the accounts on the market, but we can only help you to open some of them.

Not sure what type of account to go for? Our Savings Decision Tree can help you decide.

Cash ISAs – Ordered by rate (AER)

Take advantage of your annual tax-free ISA allowance. You can invest up to £15,240 in a cash ISA and pay no tax on the returns. Some accounts also allow you to transfer in money invested in the previous tax year so you can maximise returns on all your tax-free savings.

  1. Exclusive

    You won't find this account on any other comparison site

    Great for
    Rate depends on the number of withdrawals
    0.50% Gross/AER variable if you make 4 or more withdrawals in a calendar year
    1.05% Gross/AER if you make 3 or less withdrawals in a calendar year
    Start saving from £1 and pay money in as often as you like. Transfer in your existing ISA balances using Virgin Money's ISA Transfer Service
    But be aware that
    If you make 4 or more withdrawals in a calendar year the rate reduces to 0.50% (AER) until the end of the year
    • Provider/Product name AA ISA - Easy Access Issue 6

      AA

      AA ISA - Easy Access Issue 6

    • Interest rate (AER) 1.05% Variable Includes Fixed bonus of 0.85% for 12 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
    Includes 12 month bonus
    Apply and manage your account online 24/7
    Transfer-in an ISA you hold elsewhere
    But be aware that
    The AA ISA is provided by OneFamily. Money in this AA ISA is deposited with Bank of Ireland UK
    Partial ISA transfers out aren't available, transfers out in full only
  2. Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually

Help to Buy ISA’s – Ordered by rate (AER)

If you’re saving a deposit for your first home, you can get a helping hand from the government. When you open a tax-free Help to Buy ISA, the government will top up your savings by 25%, up to a maximum of £3,000 on £12,000 of savings.

  1. Great for
    Access to a 25% Government Bonus when purchasing your first home
    Tax free savings towards a deposit for your first home
    Instant access to your savings
    But be aware that
    Following the month of first subscription you can deposit up to £200 per calendar month
    You can only hold one Help to Buy: ISA at any time
    Any money withdrawn will no longer count towards the Government Bonus

Easy access accounts - Ordered by rate (AER)

  1. Exclusive

    You won't find this account on any other comparison site

    Great for
    Rate depends on the number of withdrawals
    0.25% Gross/AER variable if you make 4 or more withdrawals in a calendar year
    1.05% Gross/AER if you make 3 or less withdrawals in a calendar year
    Suitable for those who do not intend to make regular withdrawals, and you can choose between monthly or annual interest
    But be aware that
    If you make 4 or more withdrawals in a calendar year the rate reduces to 0.25% (AER) until the end of the year

Fixed Rate Bond Accounts – Ordered by rate (AER)

Fixed rate bonds are usually savings accounts that pay a set rate of interest, agreed at the beginning, for a certain period of time. They generally offer higher interest rates than easy access accounts, especially if you opt for a fixed rate bond that lasts for two years or more. But, you’ll pay a penalty if you need to make a withdrawal within the fixed term.

  1. 2016 SUPERS

    Winner of the Best Savings Account Provider

    Great for
    Simple online application
    But be aware that
    Withdrawals are not permitted within the fixed term

Not sure what account is right for you? Tell us a few details and we can help you decide

 

Savings. Trust us to explain them simply

Lady accessing online account via laptop

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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 worth £155.65 a week in the 2016/2017 tax year.  

This 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.

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?

Since April 2016, the introduction of a new Personal Savings Allowance (PSA) has meant that basic-rate taxpayers can earn £1,000 of savings interest without the taxman taking a slice, and higher rate taxpayers can earn £500. Additional rate taxpayers are not eligible for a PSA.

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 £75,000 (as of January 2016) 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 £75,000 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.

We can show you savings accounts from all the companies on the market, but we can only help you open accounts with some companies. We show you the accounts we can help you with first, and we give you the option to see all other accounts. We show the accounts in order according to their interest rate, from highest to lowest. You can find out more about how we work here.

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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