The idea of saving money will be alien to many people coping with the rising cost of living, but with Britain’s largest building society announcing a £200 switching offer and a linked savings account paying eight per cent interest, the competition to entice current account holders is intensifying.
In recent days, rates are much higher than anything offered in recent years.
Here are a few savings accounts worth checking out.
Regular savings accounts
Nationwide Building Society / Regular Saver — 8%
The new Flex Regular Saver account is only available to holders of current accounts and pays eight per cent AER (annual equivalent rate) for a 12-month period.
The account will go back to an instant-access account after a year.
People who use the Current Account Switch Service (Cass) and move a minimum of two active direct debits to the new account are also eligible for a £200 offer.
Natwest / RBS Digital Regular Saver — 6%
The RBS digital regular saver pays six per cent AER interest.
However, it does come with a few restrictions. The biggest is you will only get the six per cent on your first £5,000. Then, for any amount over £5,000, you will receive an additional 1.75 per cent AER.
It’s only open to Natwest or RBS customers — though you can have one at each bank.
First Direct regular saver — 7%
First Direct customers are able to get seven per cent fixed for a year via the regular saver.
The account will close after a year and you can only put in a maximum monthly deposit of £300.
Any withdrawal closes the account and reduces interest paid. It is a requirement to have a First Direct current account.
Yorkshire Building Society Loyalty Regular eSaver — 7%
This account is only accessible for customers who’ve been with the building society for more than 12 months.
You’re only allowed to withdraw once a year, on the anniversary.
Easy-access savings accounts
Barclays rainy day saver — 5.12%
The highest easy-access rate by far is offered by the Barclays Rainy Day Saver account, which pays 5.12 per cent AER interest on balances up to £5,000.
You need to be registered for online or mobile banking and pay in at least £800 a month to qualify. There’s then a £5/month fee to join, though it gives £5 cashback each month you pay out two or more direct debits — so the fee is effectively waived.
You also need to have an existing Barclays account.
Santander e-saver limited edition — 2.75%
Santander’s e-saver limited edition pays 2.75 per cent AER interest on balances up to £250,000.
The term of the account is 12 months and you don’t need to be an existing Santander member to join.
However, you will need to be a UK resident, aged 16 or over, and signed up or are going to sign up for online and mobile banking.