Best savings account of the week: Britons urged to 'act quickly' to grab lucrative deal as bank offers 7.5% interest

In recent years, savers have enjoyed competitive rates from high street banks and building societies due to the Bank of England's decision to raise the base rate in its fight against inflation.

With the central bank slashing rates to four per cent, those on the hunt for a competitive savings deal are being urged to take action before high return deals withdraw from the market.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk said: "Savers looking to secure a guaranteed return on their cash may want to act quickly to grab a lucrative deal, as some of the top rate fixed bond and fixed cash ISA deals have worsened.

"As always, its vital consumers do not neglect their savings pots, but if they are able to invest a decent sum in return for a decent rate, they must make sure Personal Savings Allowance (PSA) and take full advantage of their ISA allowance to protect their hard-earned cash from tax.

"Savers must take time out to ensure their pots are earning decent returns, as loyalty does not pay. Challenger banks and building societies are paying some of the best rates on the market, which should not be overlooked.

"Signing up to rate alerts and allowing banking app notifications is a good idea to be kept in the know on any rate moves."

Best regular savings accounts

Here is a full list of the best regular savings currently on offer this week with interest rates attached:

• Principality BS – 7.5 per cent AER / 7.3 per cent Gross
• Zopa – 7.1 per cent AER / 6.9 per cent Gross
• The Co-operative Bank – 7.0 per cent AER / Gross
• Nationwide BS – 6.5 per cent AER / Gross
• Darlington BS – Six per cent AER / Gross
• Yorkshire Building Society – Six per cent AER / Gross
• Monmouthshire BS – Six per cent AER / Gross
• West Brom BS – Six per cent AER / Gross
• Market Harborough BS – Six per cent AER / Gross
• Market Harborough BS – 5.8 per cent AER / Gross

Here is a list of the best savings accounts offering a one-year fixed interest rate:

• OakNorth Bank – 4.45 per cent AER / Gross
  
• Habib Bank Zurich plc – 4.44 per cent AER / Gross
• Habib Bank Zurich plc – 4.44 per cent AER / Gross
• JN Bank – 4.43 per cent AER / Gross
• JN Bank – 4.43 per cent AER / Gross
• Atom Bank – 4.4 per cent AER / Gross
• Chetwood Bank – 4.4 per cent AER / Gross
• LHV Bank – 4.4 per cent AER / Gross
• Tandem Bank – 4.35 per cent AER / Gross
• Cynergy Bank – 4.35 per cent AER / Gross

Best cash ISAs

Here is a list of the best cash ISAs with a one year fixed interest rate attached currently on offer:

• Tembo Money – 4.27 per cent AER / Gross
  
• Zopa – 4.17 per cent AER / 4.09 per cent Gross
• Virgin Money – 4.16 per cent AER / Gross
• Hodge Bank – 4.16 per cent AER / Gross
• Vanquis Bank – 4.16 per cent AER / Gross
• Skipton BS – 4.16 per cent AER / Gross
• Bath BS – 4.15 per cent AER / Gross
• Paragon Bank – 4.15 per cent AER / Gross
• Cynergy Bank – 4.15 per cent AER / Gross

• Plum – 4.37 per cent AER / 4.32 per cent Gross
• Harpenden BS – 4.31 per cent AER / Gross
• Family Building Society – 4.30 per cent AER / Gross
• Teachers BS – 4.30 per cent AER / Gross
• Moneybox – 4.30 per cent AER / 4.22 per cent Gross
• Marsden BS – 4.30 per cent AER / Gross
• Aldermore – 4.21 per cent AER / Gross
• Chip – 4.20 per cent AER / 4.12 per cent Gross
• Principality BS – 4.20 per cent AER / Gross
• Aldermore – 4.20 per cent AER / Gross

Best easy-access accounts

Here is a full list of the best easy access savings accounts without a bonus attached:

• Cahoot – Five per cent AER / Gross
  
• Snoop – 4.35 per cent AER / 4.26 per cent Gross
• Harpenden BS – 4.31 per cent AER / Gross
• Spring – 4.30 per cent AER / 4.22 per cent Gross
• United Trust Bank – 4.30 per cent AER / Gross
• Family Building Society – 4.25 per cent AER / Gross
• Manchester BS – 4.25 per cent AER / Gross
• Penrith BS – 4.21 per cent AER / Gross
• Cahoot – 4.20 per cent AER / Gross
• Aldermore – 4.20 per cent AER / Gross

• Chip – 4.80 per cent AER / 4.70 per cent Gross
• Chase – 4.50 per cent AER / 4.41 per cent Gross
• Sidekick – 4.48 per cent AER / 4.43 per cent Gross
• Shawbrook Bank – 4.30 per cent AER / 4.22 per cent Gross
• Principality BS – 4.25 per cent AER / Gross
• Tesco Bank – 4.20 per cent AER / Gross
• Skipton BS – 4.16 per cent AER / Gross
• Post Office Money® – 4.13 per cent AER / Gross
• Chip – 4.07 per cent AER / 4.00 per cent Gross
• Nottingham BS – 4.05 per cent AER / Gross

Ms Springall added: : "One top rate fixed bond to improve its position in the market comes from LHV Bank, which now pays a higher rate of 4.40 per cent AER on its one-year fixed bond.

"Alongside cuts to fixed rate bonds, several providers reduced fixed cash ISA rates, so any saver who has yet to utilise their ISA allowance would be wise to compare deals quickly, with the top one-year fixed ISA rate from Tembo Money leading at 4.27 per cent AER. Those savers looking to lock in for longer will find Castle Trust Bank offering the highest five-year fixed cash ISA rate at 4.26 per cent.

“There was little movement to the top easy access accounts this week, however, Chase did make a cut. In contrast, there were rate improvements by Skipton Building Society, now paying 4.16 per cent AER and Manchester Building Society, which now offers a rate of 4.25 per cent AER. One of the best rates on the market comes from cahoot, which pays an inflation-busting five per cent AER.

“Those savers who want to improve their savings habit might want to open a regular savings account. These are designed to take recurring deposits every month and can help consumers build up a savings nest egg."