LOOKING to boost your rainy day fund? We take a look at the best paying savings accounts on the market.
Savers can still put away a tidy sum, despite the Bank of England holding interest rates at a record low of 0.1%.
The base rate is important because it determines the interest the Bank of England pays to banks that hold money with it.
Banks then use this figure to determine how much to pay savers and charge borrowers.
All of the savings accounts covered in our list are protected by the Financial Services Compensation Scheme (FSCS).
This means that if you deposited cash and the bank went under, you would get your money back (up to £85,000 per person) from the FSCS.
We’ve rounded up the top accounts according to best buy tables compiled by Moneyfacts.
What are the best regular savings accounts in 2020?
Regular savings accounts are for savers who can put away a set amount each month – but they usually have set requirements if you want to make the most of the interest rates they offer.
For example, some will require you to deposit a certain amount each month. Some accounts may not let you withdraw your cash.
Keep in mind that the accounts with the best rates will likely have more restrictions in place.
Minimum investment: £1
Rate: 3.04%
Interest earned on £1,000: £30.40
Minimum investment: £1
Rate: 3.04%
Interest earned on £1,000: £30.40
Minimum investment: £100
Rate: 3%
Interest earned on £1,000: £30
What are the best one-year fixed rate savings accounts in 2020?
Fixed-rate accounts will typically offer better rates than normal, easy access accounts, so if you know you can afford to tie your money up for between one and five years, it’ll be worth looking at these type of accounts.
With these accounts you’ll always need to check how much you need to open the account with – some have really high limits which won’t be available to most people.
We’ve only included accounts with a minimum deposit of £1,000 or less – you might get a better rate with accounts that require a higher amount when opening.
Minimum investment: £1,000
Rate: 1.10%
Interest earned on £1,000: £11
Minimum investment: £1,000
Rate: 1.05%
Interest earned on £1,000: £10.50
Minimum investment: £1
Rate: 0.88%
Interest earned on £1,000: £8.80
Current account savings
AS you can now earn interest tax free on any accounts and not just Isas, some savvy savers have been using current accounts to get a cash boost.
Here are two of the highest paying current accounts around.
Nationwide FlexDirect – You’ll get 2% on balances up to £2,500 for the first year you have the account before it drops to 0.25%.
TSB Classic Plus – You’ll get 1.5% with TSB but only on balances up to £1,500.
Check out our round-up of the best current accounts depending on how much you earn.
What are the best two-year fixed rate savings accounts in 2020?
If you can afford to tie up your money for more than one year, it’ll be worth looking at longer fixes.
Here we’ve included the best two year deals currently available.
Again, only accounts with a minimum deposit of £1,000 or less are included.
Minimum investment: £1,000
Rate: 1.30%
Interest earned on £1,000: £26
Minimum investment: £1,000
Rate: 1.23%
Interest earned of £1,000: £24.60
Minimum investment: £1
Rate: 1.20%
Interest earned on £1,000: £24
What are the best easy-access savings accounts in 2020?
Easy access accounts are typical accounts that let you pay money in and withdraw it when you want – usually without being penalised.
Rates on these accounts are normally lower than fixed-rate ones but you’ll want to check them out if you know you might need to access your cash, so can’t commit to a fixed deal.
Minimum investment: £500
Rate: 1.16%
Interest earned on £1,000: £11.60
Minimum investment: £1
Rate: 1%
Interest earned on £1,000: £10
Note: NS&I will slash the rates of its income bonds from 1.16% to 0.01% AER, and its direct saver from 1% to 0.15% AER, from 24 November.
Minimum investment: £1
Rate: 0.96%
Interest earned on £1,000: £9.60
What are the best easy-access Cash Isas in 2020?
Savers trying to put some money away for the future may also want to consider opening a Cash Isa, which lets you earn interest on your savings without any tax deducted.
Since the government introduced the Personal Savings Allowance (PSA) in 2016, people have been able to make £1,000 in interest a year tax-free – in whatever account they’re saving in.
But if you plan to save more, an Isa is a good way to minimise tax. We’ve only included accounts with a minimum deposit of £1,000 or less.
Rate: 1%
Minimum investment: £1
Interest earned on £1,000: £10
Rate: 0.96%
Minimum investment: £1
Interest earned on £1,000: £9.60
Rate: 0.80%
Minimum investment: £1,000
Interest earned on £1,000: £8
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The Sun has also rounded up the nine best children’s savings accounts 2020.
Plus, there are the best-paying accounts on the market which will give you the most bang for your buck.
And here are the best personal loans 2020 from Tesco Bank to Santander.
The Bank of England cut the cost of borrowing to a record low of 0.25%
