Best savings accounts this week as savers urged to consider all interest rate options and consider switching

Woman on phone and bank account
The majority of savings account currently have a higher interest rate than inflation
GETTY
Temi Laleye

By Temi Laleye


Published: 20/05/2024

- 15:00

Updated: 21/05/2024

- 12:11

As interest rates remain high, savers are urged to get the best rates possible on their savings

Millions of Britons are being urged to check their bank accounts, in case they are missing out on inflation-beating returns.

With the latest CPI figure showing UK inflation increased by 3.2 per cent in the year to March 2024, there are a range of accounts offering competitive interest rates.

James Hyde, Spokesperson at Moneyfactscompare.co.uk explained the average rates have stayed steady due to a mixture of rate increases and reductions through the week.

He urged consumers to consider switching, just in case their money could be put to better use elsewhere.

Savers could secure a high rate with Habib Bank Zurich.

The provider's one-year fixed market now leads the market after increasing the rate on its 12 Month Bond by 0.03 per cent to 5.21 per cent AER.

Interest calculatorMoneyfactscompare figures showed that four in five savings accounts now beat the rate of inflationGETTY

Hyde said: "There remain a number of one-year fixed options paying over five per cent interest to choose from, but just two longer-term fixed options can do the same, which are two-year bonds offered by DF Capital and RCI Bank UK."

Alternatively, those looking for a tax-free interest account can consider saving into a cash ISA.

Virgin Money offers the only fixed ISA option which currently beats five per cent interest, though opening restrictions do apply. The bank's "market-leading" one-year fixed option pays 5.06 per cent AER.

The likes of OakNorth Bank and Charter Savings Bank have also increased the rates on their one-year options which both continue to sit amongst the most competitive in the market at present.

Hyde explained that State Bank of India continues to offer the highest two-year fixed rate at 4.65 per cent AER, while Shawbrook Bank also remains at the top of the three-year tier paying 4.41 per cent AER on that option.

He continued: "The leading easy access rates are still offered by Ulster Bank and cahoot, both paying 5.20 per cent AER, but higher rates of return are available for those who are willing to give notice to access their cash.

"Oxbury Bank leads the way in the notice ISA market, offering 5.32 per cent AER on its 90-day notice account.

"If savers wish to kick-start the savings habit with a regular savings account, seven per cent AER is the leading top rate from a regular saver from The Co-operative Bank this week.


"This currently enjoys a sizable lead at the top of this chart, paying 0.50 per cent more than its closest competitor from Nationwide BS.

"As always, it is down to consumers to consider all options available to them, and be open to switching if their money could be put to better use elsewhere."

Fixed one year

  • Habib Bank Zurich plc 5.21 per cent AER/Gross
  • Al Rayan Bank 5.20 per cent AER/ 5.11 per cent Gross
  • Close Brothers Savings 5.16 per cent AER/Gross
  • SmartSave 5.15 per cent AER/Gross
  • Hodge Bank 5.14 per cent AER/Gross
  • FCMB Bank (UK) 5.12 per cent AER/Gross
  • Beehive Money 5.20 per cent AER/Gross
  • Ziraat Bank 5.10 per cent AER/Gross
  • National Bank of Egypt (UK) Limited 5.10 per cent AER/Gross
Fixed two year
  • DF Capital 5.07 per cent AER/Gross
  • RCI Bank UK 5.05 per cent AER/Gross
  • Birmingham Bank 4.97 per cent AER/Gross
  • Beehive Money 4.95 per cent AER/Gross
  • Union Bank of India (UK) Ltd 4.95 per cent AER/Gross
  • Union Bank of India (UK) Ltd 4.95 per cent AER/Gross
  • Close Brothers Savings 4.95 per cent AER/Gross
  • Al Rayan Bank 4.92 per cent AER/4.84 per cent Gross
  • Atom Bank 4.90 per cent AER/Gross
  • Zenith Bank (UK) Ltd 4.90 per cent AER/Gross

LATEST DEVELOPMENTS:

Easy Access without bonus

  • cahoot 5.20 per cent AER/Gross
  • Ulster Bank 5.20 per cent AER/Gross
  • Oxbury Bank 5.02 per cent AER/4.91 per cent Gross
  • Monument Bank 5.01 per cent AER/4.90 per cent Gross
  • Close Brothers Savings five per cent AER/Gross
  • Paragon Bank five per cent AER/4.89 per cent Gross
  • Kent Reliance 4.96 per cent AER/Gross
  • Oxbury Bank 4.94 per cent AER/4.83 per cent Gross
  • Charter Savings Bank 4.93 per cent AER/Gross
  • Wealthify 4.91 per cent AER/4.80 per cent Gross

Easy Access with bonus

  • Cynergy Bank 4.93 per cent AER/Gross
  • Tesco Bank 4.76 per cent AER/Gross
  • Marcus by Goldman Sachs® 4.75 per cent AER/4.65 per cent Gross
  • SAGA 4.75 per cent AER/4.65 per cent Gross
  • Principality BS 4.75 per cent AER/Gross
  • Post Office Money® 4.75 per cent AER/Gross
  • Principality BS 4.60 per cent AER/Gross
  • Post Office Money® 4.10 per cent AER/Gross
  • Sainsbury's Bank four per cent AER/Gross
  • TSB 2.92 per cent AER/2.89 per cent Gross

Regular savings

  • The Co-operative Bank seven per cent AER/Gross
  • Nationwide Building Society 6.50 per cent AER/Gross
  • NatWest 6.17 per cent AER/six per cent Gross
  • Royal Bank of Scotland 6.17 per cent AER/six per cent Gross
  • Principality Building Society six per cent AER/Gross
  • West Brom Building Society six per cent AER/Gross
  • TSB six per cent AER/Gross
  • Saffron Building Society 5.75 per cent AER/Gross
  • Principality Building Society 5.50 per cent AER/Gross
  • Halifax, 5.50 per cent AER/Gross


Interest rates were compiled by Moneyfactscompare.co.uk at 10.29 on Monday, May 20.

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