Interest rates: Expert advises on savings and mortgages
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Easy access accounts provide Britons access to their money without any constraints, although this usually means a lower interest rate. As the cost of living crisis continues, some have suggested savers keep their cash in easy access accounts in case of emergency.
Emergency savings are vital in times like these, with experts recommending Britons have three months’ worth of expenses saved into this pot.
However, this fund is no good if Britons follow higher interest rates and put their emergency savings into notice or fixed accounts.
This will mean they cannot access it in times of crisis, which is the exact point of the fund.
Instead Britons can keep their emergency savings in easy access accounts, of which the leading accounts offer a range between one and two percent.
Chase is topping the tables for easy access accounts, with 1.5 percent available with unlimited withdrawals.
The account has no minimum but does have a maximum deposit amount of £250,000.
Aldermore’s Double Access Account comes with a 1.25 percent interest rate and a minimum requirement of £1,000.
However, if Britons make three or more withdrawals in an anniversary year the interest rate will drop to 0.10 percent from the day of the third withdrawal until the day before the anniversary.
Zopa, which also offers boosted interest pots and the ability for savers to separate their savings into different pots and goals, is offering 1.2 percent on their easy access account.
The account can be opened with a minimum of £1 and a maximum of £85,000, and savers should note that the account will be managed through the Zopa app.
Marcus by Goldman Sachs currently comes in joint tenth in terms of the leading rates with one percent on their online savings account, as ranked by Moneyfacts.
The account can be opened with just £1 and can hold a total of £250,000, with unlimited withdrawals.
Offering slightly more is Investec’s Online Flexi Saver, which offers instant access with unlimited withdrawals and 1.06 percent interest.
The flexi saver does, however, require a £5,000 minimum deposit.
Alongside ordinary easy access accounts, many banks offer higher or boosted rates for current account customers looking to save.
All of these accounts have a maximum FSCS protection of £85,000.
These rates have all drastically improved the savings situation nationally since the pandemic.
Current top market easy access accounts offer an average of 1.20 percent, three times the 0.44 percent average a year ago.
The Bank of England has increased the base interest rate three times since November last year, from an all time low during the pandemic of 0.1 percent.
Currently sitting at 0.75 percent, many banks have increased their rates beyond this in order to stay competitive.
Source: Read Full Article