Unlocking the Best Savings Accounts in 2023

In the wake of 14 consecutive Base Rate hikes, high street banks and building societies are upping their game, offering savers more attractive interest rates. Some of these rates soar above six percent! If you’re looking to maximize your savings, you’re in the right place. Our savings expert, Lucinda O’Brien, has curated a list of the best savings accounts available today.

1. Easy Access Savings Accounts

Easy access accounts are the go-to choice for those who want flexibility and convenience. With minimal restrictions and low opening deposit requirements, they offer easy payments and withdrawals. Here are the top picks:

  • Oxbury Bank’s Personal Easy Access Saver (Issue 1): Earn an Annual Equivalent Rate (AER) of 4.94 percent. You can open this account with just £1,000 and enjoy monthly interest payments. It’s suitable for investments up to £500,000, and you can make unlimited withdrawals.
  • Shawbrook Bank’s Easy Access (Issue 36): Offers an AER of 4.93 percent. The minimum deposit is £1,000, and interest is paid on the anniversary. You can invest up to £85,000, and withdrawals are allowed at any time without notice.
  • Cahoot’s Simple Saver: Achieves an AER of 4.9 percent with a minimum deposit of only £1. Interest can be paid annually or monthly, and you can invest up to £2 million. Plus, you have the flexibility to make withdrawals whenever you need.

2. Fixed Rate Savings Accounts

If you prefer certainty, fixed-rate accounts allow you to lock in an interest rate for a specific period. Here are the top options:

  • NS&I’s Guaranteed Growth Bond (Issue 72): Leading the one-year fixed savers list with an impressive AER of 6.2 percent. You can open this account with a minimum deposit of £500, invest up to £1 million, and choose monthly or annual interest payments. However, withdrawals are only allowed at the end of the term.
  • Ford Money’s Two-Year Fixed-Rate Bond: Offering an AER of 6.05 percent with a minimum deposit of £500. You can invest up to £2 million, and interest is paid on the anniversary. Like the previous account, withdrawals are not permitted until the term ends.
  • Tandem Bank’s Five-Year Bonds: Tops the list for long-term savers with an AER of 5.85 percent. Open it with just £1, invest up to £2.5 million, and receive annual interest payments. Withdrawals are restricted until the term concludes.

3. Cash ISAs

Cash ISAs let your money grow tax-free, provided it stays within the Personal Savings Allowance (PSA). Here are some top choices:

  • Shawbrook Bank’s Easy Access Cash ISA (Issue 25): Offers an AER of 4.43 percent. The account is accessible with a minimum deposit of £1,000, and you can make withdrawals at any time.
  • Shawbrook Bank, Charter Savings Bank, and Zopa top the lists for one, two, and three-year fixed-rate ISAs. Shawbrook’s one-year fixed ISA boasts an AER of 5.78 percent, while Charter Savings and Zopa offer AERs of 5.57 percent and 5.56 percent, respectively.

Why Should You Act Now?

Although interest rates on savings accounts may seem stagnant, there are still opportunities to earn more on your hard-earned money. Consider these accounts with competitive rates, like NS&I’s one-year bond at 6.2 percent or Tandem Bank’s five-year bond at 5.85 percent.

Keep in mind that it’s not always the case that longer terms guarantee higher interest rates. Weigh your options carefully, especially if you anticipate rates dropping significantly in the future. Securing a competitive rate now could be a wise move for your financial future.

In conclusion, the savings landscape is evolving, and better returns are within reach. Whether you prefer easy access, fixed-rate, or cash ISAs, there are options that can help you make the most of your savings. Don’t miss out on these opportunities to boost your financial well-being.