Best savings accounts 2017/18

[Bayum]

Don't really want to get into the ins and outs of every single bank, but rather than me go and listen to a variety of banks and then doing my own misinformed research, I thought I'd ask you guys!

I've got some modest, but considerable savings set aside which are in my main account doing sweet nothing. I'd quite like it putting into an ISA or some form of savings account that I'm going to earn interest on... Where would you suggest?

 

[cactustwirly]

Probably a current account, or a limited access savings account

 

[theblackwatch]

How long are you looking to save it for? If it's for long term and you're prepared to take a bit of a gamble, then a stocks & shares ISA is a good bet. I've had one for a good few years, and while it sometimes goes down a bit, I can safely say the value is a hell of a lot more than it would have been if I'd stuck it in a cash account. There is a risk though as if the stock market tumbled... (but you only lose out if you sell at such a time, if you keep it and wait in the hope it will go back up).

If you already have accounts with any particular banks/building societies it is worth seeing if they have any special deals for exisiting members. For example Santander has a 5% account for existing regular savers, although you can't put a lump sum in, you have to put in £1-£200 per month. Another good account, which isn't actually a savings account, is their 3-2-1 current account, which offers 1.5% on balances of up to £20,000 - if you have the full amount in, it gives about £25/month - not a great deal but sadly you won't get much better nowadays. You have to pay in at least £500/month (but can draw it out straight after!) and have a couple of direct debits in order to qualify for the 1.5%.

Hope this helps!

 

[Lrd]

Check out this useful website

 

[DarloRich]

mattress? I get very little from my savings account.

 

[johntea]

First port of call the MoneySavingExpert website! Always kept up to date with the best banks and savings with various options provided depending on how you want to save.

Also, bank switching offers can be quite lucrative if you have the time to study them carefully (Loyalty counts for nothing anyway!) - I recently switched from HSBC to TSB, they do all the switching for you pretty much, £100 odd bonus just for that then 3% AER on up to a £1500 balance in the account (so roughly a free £40-£50 for the year!), then 20 transactions a month for £5 cashback and 2 active direct debits for another £5 cashback. Overall around £250 in 'free' money but you do just need to go through the small print with a magnifying glass!

Once the cashback ends, I'll switch somewhere else! (Obviously you need a half decent credit rating to be able to do things like this!)

 

[PeterY]

I recently brought a lot of Premium Bonds. Last month I won £25. I know it's not a lot but that's more interest than I'd earned in a bank. Plus I get my money back when I decided to sell them unlike the lottery.

At the moment a mattress seems a good bet.

 

[RJ]

If you're so minded, spread it around several current accounts that offer 2-3% on nominal balances. Usually they cap this interest rate to the first £1500-£5000 in the current account.

On the basis that earning something is better than nothing, open up as many "regular savers" as you can fill - typically they'll offer around 4-5% but only take £200 - £400 of deposits a month. Assuming you deposit the full allowance every month, the interest you get on the final balance is approximately half of the headline rate.

Once you've exhausted all of these safe options, for an easy life you can stash the rest in a savings account like the National Savings & Investments Direct Saver. I prefer to keep a float for various arbitrage schemes as they blow the interest earned from any account out of the water without risk if done correctly. Bit hard to be grateful for being tossed 5% AER from a bank when you can get 5-35% guaranteed profit back in a couple of days through having an eye for price differences.

 

[DarloRich]

If you're so minded, spread it around several current accounts that offer 2-3% on nominal balances. Usually they cap this interest rate to the first £1500-£5000 in the current account.

On the basis that earning something is better than nothing, open up as many "regular savers" as you can fill - typically they'll offer around 4-5% but only take £200 - £400 of deposits a month. Assuming you deposit the full allowance every month, the interest you get on the final balance is approximately half of the headline rate.

Once you've exhausted all of these safe options, for an easy life you can stash the rest in a savings account like the National Savings & Investments Direct Saver. I prefer to keep a float for various arbitrage schemes as they blow the interest earned from any account out of the water without risk if done correctly. Bit hard to be grateful for being tossed 5% AER from a bank when you can get 5-35% guaranteed profit back in a couple of days through having an eye for price differences.

Oh to have the freedom to hold savings accounts Mine apart from a small sum in the HSBC is in my house. The sum in the HSBC makes it pointless looking for a better rate

 

[Bald Rick]

+1 for using the Money Saving Expert website for advice.

Another thing you might consider is peer to peer lending websites. There's a number of companies doing this online, with Zopa being the most popular. Essentially you lend other people money via the website, and to help protect against default the website automaticallysplits your money across a number of borrowers in small chunks (typically £10). It is a slightly higher risk investment than putting it in the bank, in that if one or more of the borrower defaults, you may not get that £10 back. However the reward is also much better: rates of 4-7% are typical.

Advice on P2P lending is also available on Money Saving Expert.

 

[gazthomas]

Cash is not generating any return at the moment and the benefits of ISA's have become almost irrelevant now. If you're prepared to take a little risk I would follow Bald Rick's recommendations. Ratesetter might work for you - they are offering 4.4% instant access at the moment. Remember this is not financial advice and the value of your investment can go down as well as up!

 

[richw]

Interest is rock bottom on savings. I’ve gone for stocks and shares direct through my employers sharesave scheme for some additional savings this year. All purchased are fixed at the price at the time of inception. Currently worth nearly double the inception rate. Living off my savings which were earning 0.1 percent annual and maxing out the sharesave scheme from my wage.
Stocks and shares done well are the way forward, albeit a gamble, where else could I double my money in a year (if the rate stays as it is now)

 

[STEVIEBOY1]

Another similar thread is on this site, but the interest rate did go up by a little bit yesterday.

 

[cactustwirly]

My Santander current account gives a better interest rate than my savings account.

 

[Jetlagged]

My Santander current account gives a better interest rate than my savings account.

Same for me with Nationwide.

 

[D365]

If you hold current accounts with either there do exist savings accounts with either, that allow you to deposit £200-250 per month, and reward you with 5% interest paid at the end of a twelve month period.

 

[Jetlagged]

If you hold current accounts with either there do exist savings accounts with either, that allow you to deposit £200-250 per month, and reward you with 5% interest paid at the end of a twelve month period.

Wow! That one had passed me by but I'm all signed up now.

Thanks very much for the heads up.