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Interest rates have unfortunately taken a tumble recently, due to the impact of the COVID-19 crisis. Back in March, the Bank of England took the unprecedented decision to lower its base rate to 0.1 percent, which had a knock on effect on many providers. As a result, the ability to grow one’s money has been made more complicated, but this does not mean Britons should not explore the options available to them.
In fact, there are a number of accounts which are still offering fairly decent interest rates, even in the face of financial difficulties.
Speaking to Express.co.uk, Katie Brain, Insight Analyst at Defaqto, offered further insight into the leading options available to Britons.
Leading the charge for interest rates at present, Ms Brain explained, is NS&I.
The government-backed savings institution is currently offering interest rates from 1.16 percent to 0.80 percent on its easy access accounts.
The balance needed for the highest interest rate varies from just £1 to £500, and thus this may prove a suitable option for a wide range of savers.
It is worth noting, however, that it is just weeks until NS&I will be significantly downgrading its interest rates – dropping its Income Bond and Investment Account to 0.01 percent and its Direct Saver to 0.15 percent.
As a result, Britons are likely to desire to explore alternative options which are currently on the table.
The next best account for interest rates at present is Atom Bank, offering a 0.75 percent rate to savers depositing upwards of £1 – and thus available to a wide range of savers.
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A number of banks and building societies follow closely behind with a 0.70 percent offering including Kent Reliance, Saga, and the Principality Building Society.
The next competitive offerings come from two building societies – The Family Building Society (FBS) and Cambridge Building Society (CBS).
FBS is offering a Market Tracker Saver at 0.67 percent, and an Online Saver at 0.61 percent, with CBS providing an interest rate of 0.65 on its Your Saver account.
Sainsbury’s Bank and UBL Bank are two accounts currently offering 0.60 percent in interest for those looking for these options.
But other banks which offer the leading interest rates at the moment offer interest rates between 0.50 and 0.57 percent.
Some of these are from providers which may not be as well known to Britons such as ICICI Bank or JN Bank but could help money to grow.
This should not put savers off, and undertaking research can ensure money is given the chance to flourish.
Others include the Buckinghamshire Building Society, Paragon and the Cambridge Building Society.
Ms Brain commented on the current offerings put forward by banks and building societies for British savers.
She said: “It seems unlikely that interest rates will be gong up any time soon.
“It is therefore probably wise for consumers to think about fixed rate savings once an emergency instant access fund has been catered for.
“To get the best rates, consumers will need to be looking at providers they may not have heard of before, especially for the best fixed rate savings.”
While interest rates are struggling, banks and building societies often remain the best place to keep money saved.
This is due to the fact many subscribe to the Financial Services Compensation Scheme (FSCS).
Should anything go wrong, FSCS subscribed banks and building societies will protect funds deposited up to £85,000.
However, for those with multiple accounts it is important to check these are not owned by the same banking group as this will limit what can be protected.
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