Full list of the best savings accounts with rates of up to 3.61% | The Sun

THE Bank of England's base rate hikes have been passed on to mortgage holders – but banks are failing to pass on the rises to savers.

The base rate has risen six times over the last few months, from a low of 0.1% to 1.75% today.

But the increases have affected savers and mortgage holders in different ways.

While banks typically pass on any rate hikes to mortgage holders immediately, pushing up their monthly repayments, many are moving slower when it comes to bumping up interest rates on savings accounts.

No savings accounts beat inflation, which is currently sitting at a 40-year high of 9.4%.

Rachel Springall, finance expert at Moneyfacts.co.uk said: "Savings rates have continued on an upward trajectory this month which is great news for consumers looking to earn more interest on their hard-earned cash.


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"There are even now one-year fixed savers paying more than 3%, and notice accounts paying more than 2%.

It’s vital that savers check any existing account they have, because not every savings account has improved, as some deals can pay as little as 0.01%.

Rachel said: "Challenger banks and building societies are paying some of the best rates, so there is little reason to overlook them."

We list the different savings accounts on offer and banks paying the most in interest.

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Easy-access savers – rates up to 2.1%

These savings accounts do what they say on tin – they usually allow unlimited cash withdrawals.

However, this perk means they tend to come with lower interest returns, but there are a number of accounts worth considering.

Al Rayan's Bank Everyday Saver offers customers 2.1% back in interest and unlimited cash withdrawals.

However, you'll only get this interest rate if you invest £5,000 or more – so it's not for those looking to save a few hundred quid here and there.

Gatehouse Bank's Easy Access Account offers customers a 2% interest rate as long they invest as little as £1.

Zopa's app based savings account pays 1.81% interest on balances between £1 and £85,000.

Notice savings accounts – rates up to 2.3%

These accounts offer slightly higher rates than easy-access accounts but you'll need to give advance notice to your bank (up to 120 days) before you can make a withdrawal or you'll forfeit the interest.

XXXXX OakNorth Bank (120 day) and OakNorth Bank (90 day)

Regular savings accounts – rates up to 3.5%

These accounts generate decent returns but only on the basis that you pay in a set amount each month.

First Direct offers a regular saver paying 3.5% in interest.

You'll need to save between £25 and £300 a month, and up to £3,600 a year.

For example, if you were to save £300 every month for 12 months with this account, you'll earn approximately £68.25 in interest.

Natwest's Digital Regular Saver will pay 3.3% interest on savings up to £1,000, so if you're looking to put away a little here and there it could be a good account for you.

Fixed rate savers – rates up to 3.61%

These offer some of the highest interest rates – but this comes at the cost of being unable to withdraw your cash within the agreed term.

If interest rates increase during your term you can't move your money and switch to a better account.

Smart Save's 5 Year Bond will pay customers who save at least £10,000, 3.61% in interest.

However, Tandem's 5 Fixed Saver will pay customers 3.55% back as long as they make a minimum deposit of £1.

If you can't commit to fixing for five year you can fix for one and get 3.5% interest back if you save at least £1,000 with a Ahli United Bank (UK) Raisin UK 1 Year Fixed Term Deposit.

Ditch the ISA

With today's personal savings allowance a saver would only be taxed on their savings if they had £65,000 or more in the bank – so it's unwise to open a cash ISA right now.

Founder of MoneySavingExpert.com, Martin Lewis actually encourages most to sign up for a Lifetime Isa (Lisa) to get thousands of pounds in free cash if you're a saver.

You could bag up to £32,000 for free from the government if you max out this savings account over the long-term.

A Lisa is savings account for anyone aged 18-49 – you can put in up to £4,000 a year until you’re 50, and the government adds an additional 25% bonus on top.

But you can only use the money you save to either buy your first home or at retirement, or you'll forfeit the bonus.

How can I search for a new savings account?

Check comparison websites

With your current rates in mind, don't waste time looking at individual banking sites to compare rates – it'll take you eternity.

Research websites like MoneyFacts.co.uk and price comparison websites such as Compare the Market, Go Compare and MoneySupermarket will help save you time and show you the best rates available.

These sites let you tailor your searches to an account type that suits you.

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Rachel said: "It's a quick way to compare the top rates.

"Savers can even search by how much they are looking to put aside and how long they are prepared to lock it away."

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