Best savings accounts in the UK - May 2023 - Money Saving Girl (2023)

admin May 23, 2023Personal FinanceComments Off on Best savings accounts in the UK – May 2023121 Views

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In recent times, there has been a shift in the trajectory of interest rates on savings, moving upwards after a period of decline. This upward trend can be primarily attributed to the Bank of England raising its base interest rate to 4.5%. However, it is important to note that these rate increases have not been fully implemented or applied to all types of accounts.

If you are keen on maximizing the returns on your savings, this article aims to guide you through the current best options available to you.

With the current inflation rate of 8.9% and prices of goods and loans raising its important to reap benefits of ROI on all possible savings account!

Top Savings Account Options

Below are the current highest paying interest rates for the most popular savings methods. For additional information, including top rates from other providers and details on other account types, please refer to the dedicated sections further down the page.

  • Easy access 3.82% – Chip
  • Current account 5.12% – Barclays Blue Rewards Rainy Day Saver
  • Limited access 4.25% Hanley Economic Building Society
  • Regular Saver 7% First Direct
  • 6 month fix 4.4% Monument
  • 9 month fix 4.61% OakNorth
  • 12 month fix 5% Smart Save
  • 18 month fix 5.01% Hampshire Trust Bank
  • 24 month fix 4.97% Smart Save
  • Easy Access Cash ISA 3.55% Leeds Building Society

Top Regular Savings Accounts

The following accounts are categorized as “Regular” or monthly savers, which operate differently compared to standard savings accounts.

To begin with, there is a monthly savings limit, and the interest is calculated based on the balance each month. After 12 months, the accrued interest is paid, and the saver account is typically closed. However, you can then open a new account and start the saving process again.

These accounts are particularly beneficial if you have a fixed amount of money to set aside each month or if you prefer to transfer funds monthly from a lower-yielding easy access account.

Please note that you can only open the top-rated accounts if you currently have or are willing to open a current account with these banks. However, this requirement should not discourage you from considering these options.

The best regular saving account – up to 7% with First Direct

The best Regular Saver Account in May 2023 is offered by First Direct on amounts between £25-£300 per month. You must have a First Direct current account and money on it as the bank will organise transfers to the regular saver account on a certain day of the month from your current account. Open the First Direct account and then the saver account and ensure you have a year worth of £300s (12*300=£3600 to get a maximum of % on it after a year!).

Second best Saver Account – Club Lloyds Monthly Saver- up to 6.25%

To access this regular saver, you must hold a Club Lloyds current account. This account offers additional perks, such as six complimentary cinema tickets, free magazine or restaurant discount card. Here is my review of the Club Lloyds regular saver.

Furthermore, in addition to the aforementioned regular saver, you will also have the opportunity to benefit from the standard monthly saver (more information below).

Natwest or/and RBS Digital Regular Saver (6.17%)

Those accounts provide an exceptionally high-interest rate, but they do come with certain limitations. Namely you can only save up to £150 per month. Additionally, the attractive interest rate will only apply to the first £5,000 saved. However, unlike other regular savers, this account does not expire after 12 months.

Please note that this account is exclusively available to NatWest or RBS customers. However, you have the option to open one at each bank if you meet the criteria. I have both to maximise the savings.

Alternative Monthly Savers (Up to 5.5%)

Here are some other noteworthy regular savers. It’s also worth considering your local building society, as they may offer competitive options for residents who can visit a branch to open an account.

  1. Halifax Regular Saver (5.5% AER fixed) – for savings between £25-£250.
  2. Bank of Scotland (5.5% AER fixed) – £25-£250 (a current account needed).
  3. Lloyds Monthly Saver (5.25% AER fixed) – £25-£250 (a current account needed)- I have this one as opposed the higher % one as at the time of opening this % was available and unlike other banks they dont increase the % on the savings account automatically.
  4. Nationwide Start to Save (5.25% AER variable) – Up to £50 per month.
  5. HSBC Regular Saver (5% AER fixed) – £25-£250 (a current account needed).
  6. Santander Regular eSaver (5% AER fixed) – £0-£200 (a current account needed).
  7. TSB Monthly Saver (5% AER fixed) – £50-£250 (a TSB current account needed)
  8. Coventry Building Society (4.4% AER starting from 1st June, 4.15% until then) – Up to £500 per month
  9. Hinckley & Rugby Building Society (4.75% AER) – £10-£500 (30-day notice available)
  10. Leeds Building Society (4.2% AER variable) – £100-£250 (lasts two years)
  11. Principality Building Society (4.5% AER fixed) – £1 – £250

Top High-Interest Current Account Linked Savings – Up to 5.12%

Several competitive interest rates can be found within or associated with current accounts. While these accounts are available to everyone, please note that a credit check will be conducted during the application process. With these accounts, you have the flexibility to access your funds at any time, although there are limits on the amount of money eligible for earning interest.

Barclays Blue Rewards Rainy Day Saver (5.12%)

Earn 5.12% interest on balances up to £5,000 by having a Barclays current account with Blue Rewards. While this account has a monthly fee of £5, it can be waived by setting up at least two direct debits per month and depositing £800 or ensuring you get a Premium account (when you earn 75k or more).

Nationwide Flax Direct – 5%

With the FlexDirect account, you have the opportunity to earn 5% interest on balances up to £1,500, but there is a requirement to deposit £1,000 per month into the account to qualify for this rate.

After the initial year, the interest rate will decrease to 0.25%. However, you can switch to another account at that point, which may offer a lucrative cash bonus for making the switch.

It’s important to note that the 5% interest rate is applicable only when you open the account initially. I switched to Nationwide ages ago and used this offer ages ago so its not for me but if you havent used Nationwide hurry up! Although I could make my partner open this account or later a joint account…

Santander Edge – 4%

You need a Santander Edge current account to get this account, which comes with a £3 monthly fee. That impacts your return, but if you earn cashback on your bills you will be able to offset that cost easily and get the savings.

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