Savers who want the best interest rates must do a lot of legwork. The top rates change every day or so as providers vie for new customers and pass on Bank of England base rate rises — which now total 14 in under two years.
However, if you don’t have the time to shop around — but still want a good deal — there are some consistently good payers.
With these, you are unlikely to get the very best rates, but you can rest assured you’re getting not far off — and without the bother of frequently chopping and changing.
Among the consistently good online accounts are Ford Money, RCI Bank and Investec. All three providers have raised their rates this year by more than the 1.75-point rise in the Bank of England base rate.
Ford Money offers a Flexible Saver, which raised its rate to 4.75 per cent last week. You can open an account with a minimum deposit of £1. RCI Freedom account pays 4.5 per cent on a minimum of £100.
Reliable rates: If you don’t have the time to shop around to get the very best savings rate — but still want a good deal — there are some consistently good payers
Investec pays 4.47 per cent, but you need at least £5,000 to open an account and you will earn no interest if your balance falls below this level. This rate may rise further still following the latest base rate rise earlier this month.
Aldermore is also usually a good bet. Its Easy Access account pays 4.25 per cent. It has 15 different issues of this account.
However, unlike with some providers, Aldermore pays the same rate on its old issues that are no longer on sale as it does on its current Number 15 version.
It also has a Double Access Saver, which limits you to making two withdrawals a year, at 4.7 per cent.
For accounts you manage through an app on your phone or tablet, Tandem and Chip are good options.
Both have raised their rates more than the Bank of England base rate this year, to pay 4.65 per cent and 4.84 per cent respectively. Tandem also offered a bonus earlier this year, so some existing savers earn 5 per cent. It could offer another bonus, which would up the rate.
If you want to stick to the High Street, then seek out a building society. Coventry and Skipton, two of the largest, generally offer reasonably competitive rates and pay the same rate to existing savers in older accounts as to new ones. Coventry Easy Saver pays 3.1 per cent, while with Skipton Easy Access Saver Issue 2 you’ll earn 3.8 per cent.
You could find smaller building societies pay even more. For example, Swansea’s Instant Access Saver, also consistently up with the leaders, rises from 3.75 per cent to 4 per cent from Friday.
The big High Street banks can rarely be relied on to pay consistently good rates. Santander pays an abysmal 1.05 per cent to some customers in its easy access accounts, while Barclays pays as little as 1.16 per cent.
If you don’t want to switch regularly, watch out for savings providers that issue new versions of their accounts with top rates, while leaving loyal savers in older versions on lower rates.
For example, the top easy access rate currently comes from Shawbrook Bank at 4.93 per cent. But it only pays this on its current issue, number 36, on sale now. Savers in previous issues earn between 1.52 per cent and 3.91 per cent.
Also beware of accounts that come with bonuses that are only paid for 12 months.
For example, Beehive Money Bonus Saver and Cahoot Simple Saver offer a top rate of 4.9 per cent. However, the accounts are boosted by a 12-month bonus, after which the rates nosedive to 2.65 per cent and 1.05 per cent respectively.
Anna Bowes from rate scrutineers Savings Champion says: ‘There are no rules as to what providers must do on their rates when the Bank of England changes its base rate.
‘But good consistent rates come from providers who don’t offer bonuses and put the rate up for all their customers rather than just for some.’
Rachel Springall at MoneyfactsCompare adds: ‘The savings market has seen significant improvements due to competitive challenger banks and base rate rises. But not every customer has benefitted. It is imperative savers ditch and switch if they are getting a raw deal.’
