Beat inflation with these savings accounts of all shades and make your money go further.
Welcome to this week’s savings safari, where we’ll navigate the wild world of personal finance with Anna Bowes, our fearless guide (and personal finance expert from The Private Office). Buckle up, because it appears that inflation figures have decided to plummet like a stone from a great height—landed at 3.8%—which has somewhat curbed the frenzy of savings rate cuts. In a twist of fate, however, some providers have disregarded this development and continue their journey toward reduced rates, as if looking for the lost city of Atlantis.
Now might be the moment for you to don your detective hat. What rates are you actually getting? Time to compare and see if your savings are moving at the speed of a glacier while others are racing like a caffeinated squirrel.
Fixed-rate cash ISAs: The Real MVPs
The biggest piece of news? Well, hold onto your calculators, because United Trust Bank just rolled out a shiny new three-year cash ISA at a breathtaking 4.23%. That’s just 0.01% better than Shawbrook—talk about a nail-biter. Now, if you thought Vida Saving was merely a footnote in financial literature, think again! They top the one-year and two-year ISA charts with respective rates of 4.31% and 4.22%—truly the rock stars of the savings arena. Shawbrook, however, is clutching its five-year ISA crown tightly with a 4.25% AER. Seriously, who knew inflation could turn into such a reality show?
As our illustrious guide points out, “Rate cuts are currently on hold, but there are still inflation-busting cash ISA rates out there like superheroes swooping in to save the day!” So, if you haven’t considered using your ISA allowance yet, you may want to pop that cherry—tax-free style.
Easy Access Cash ISAs: The “Yeah, But…” Category
Let’s talk about Easy Access Cash ISAs, shall we? Our previous market leader, Plum, has sadly collapsed from its lofty heights, reducing its rate for new customers from 4.41% to a paltry 4.35%. Yikes! Principality Building Society has jumped into the limelight with their Online Bonus 5 Access Cash ISA, flaunting a rate of 4.4%. But, here’s the twist—only five withdrawals per year are allowed, which is great if you’re a hermit but not super convenient if you enjoy the occasional shopping spree.
If you prefer an ISA with a bit more liberty, Chip is your go-to with a tempting 4.32%. Just keep in mind that you’ll need their app, and the introductory rate includes a bonus of 1.28% for the first 12 months—so, it’s like a sushi roll; delicious but packaged to perfection.
Easy Access Accounts: Where Convenience Meets Disappointment
The top easy access account? Drumroll, please… it’s a whopping 4.75% with Chase Bank! But, spoiler alert: you’ll need to have a Chase current account to get it. If you want unrestricted access, Cahoot’s Simple Saver Issue 11 is strutting in at 4.4% AER. Cahoot even has another easy access account strutting a stunning 5% AER, but only on up to £3,000. It’s like getting a cookie but being told you’re only allowed to take a nibble.
Fixed-Rate Bonds: The Old Reliable
In the realm of fixed-rate bonds, things have been buzzing like a busy bee in spring. Some rates have disappeared like your best intentions on New Year’s Day, but fear not! Chetwood has stepped into the limelight with a brand-new account at a dazzling 4.5%. Cynergy and Atom are also playing the game, both offering 4.4%—a solid backup plan when your first date bails on you.
Lastly, JN Bank holds the five-year bond crown with a rate of 4.52% AER. This is likely a golden ticket for those who believe that interest rates are destined to tumble like a lead balloon in a deep sea dive. Dive in smartly, my friends!
