Make Your Money Work for You: Shop Around for the Best Savings Accounts

Households have been sent a message: it’s time to make their money work for them. With inflation at 2% and the top savings accounts offering interest rates above 5%, there has never been a better time to shift your savings to an account that will pay out handsome sums in interest.

Savings accounts with the best interest rates are being highlighted by money experts

Experts say that the best rates are with the likes of Mizrahi Tefahot Bank, Close Brothers, and Chase, with the rise of online banks offering households many more options.

People are being advised to shop around for the best deals, but are reminded to always read and understand any terms and conditions fully before signing up. Many people stick with the same savings account, with a poor interest rate, for years.

“Remember, inflation now stands at 2% and the top deals are above 5%, which gives your money more purchasing power. This means there has never been a better time to move your money if it’s currently sitting in an account earning little interest.” - Money Expert

For example, Mizrahi Tefahot Bank via Raisin UK currently has the top interest rate for a one-year fixed-rate bond at 5.25% and this can be opened with £1,000. If you’re happy to lock away your money for longer, then Close Brothers Savings has a two-year fixed rate at 5.06% but you’ll need a minimum opening balance of £10,000.

High-interest savings accounts are offering rates above 5%

For more flexible savings, Chase’s instant access boosted rate at 5.10% is still available to new and existing customers - but you will need a Chase current account to access this savings account. Cash ISAs also remain competitive with Plum’s easy access ISA at 5.17% and this can be opened with just £100.

By switching to a higher interest account, you could bag yourself an extra £233 per year on average on £10,000 savings - and more for the more savings you have. Customers with the big banks like Barclays, Lloyds, NatWest, HSBC, and Santander may be able to find better deals. There may also be better accounts with their existing banks they are unaware of.

Use a savings calculator to find out how much you could earn

So, what are you waiting for? Take the first step to making your money work for you and start shopping around for the best savings accounts today.