Savers are being urged to take advantage of best high interest rate accounts currently on offer from challenger banks and building societies.
Experts from Moneyfactscompare have compiled a list of their “picks of the week” which highlights the top savings products on the market.
Here a is a full list of the best savings accounts of the week beginning April 1, 2024, according to Moneyfactscompare:
- Hampshire Trust Bank – One Year Bond (Issue 64): 5.17 per cent AER
- Castle Trust Bank – One Year Fixed Rate e-Cash ISA: 5.05 per cent AER
- Newcastle Building Society – Newcastle Single Access ISA (Issue one) – five per cent AER.
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Savings interest rates are continuing to remain competitive
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Caitlyn Eastell, a spokesperson at http://Moneyfactscompare.co.uk, shared why Hampshire Trust Bank’s account has been awarded an “excellent” rating.
She explained: “Sitting comfortably in the market, the account pays an appealing 5.17 per cent on a £1 minimum investment, making this an attractive deal for many savers.
“It is important that investors are comfortable with locking away their cash for the full term as earlier access is not permitted.
“However, further additions are allowed for 14 days which could be an added bonus.”
With this account, the minimum opening amount is £1 while the maximum investment amount comes to £250,000.
The minimum age someone can open this One Year Bond is 18 years old with savers being able to manage the account online.
Savings interest rates have remained relatively high following the Bank of England’s decision to raise the UK’s base rate.
This has been done by the central bank as part of its efforts to ease the Consumer Price Index (CPI) rate of inflation.
In the 12 months to February 2024, inflation in the UK eased to 3.4 per cent which suggests the Bank’s efforts have been successful.
As such, analysts are pricing in a series of interest rate cuts from the Bank of England in the later half of 2024.
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The Bank of England base rate is at a 15-year high of 5.25 per cent GB NEWSWhile this would benefit mortgage holders and other debt borrowers, savers will take a hit with accounts providing less competitive returns as a result.
Finance expert Rachel Springall from Moneyfacts cited the “challenging environment” for savers in the current market.
Ms Springall added: “The unpredictable nature of interest rates results in a challenging situation for savers comparing accounts, as some of the best deals can be withdrawn relatively quickly.
“Challenger banks have been particularly active in recent weeks, adjusting their market positions in the top rate tables, such as those improving their rates to entice new deposits.”