With inflation still running high, it remains important that savers are seeking the best returns possible on their cash – especially ahead of a potential cut to interest rates before the end of the year.
Research this week from Marcus by Goldman Sachs claims 46 per cent of UK savers are holding money in current accounts – often paying no interest at all – while 41 per cent have not moved their savings in the past year and have no plans to do so in the future.
It likely means they are missing out on significant returns on their cash, but more importantly, means the real value of their money will be going down as inflation has stayed high all year.
Job no.1 for savers should be to maintain the interest earned on cash above the rate of inflation – which means a minimum of 4 per cent, and it’s possible to earn well above that.
Here are the top rate savings accounts you should be checking out in November.
A cash ISA is just a normal savings account but you don’t pay tax on interest earnings inside it.
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The Independent has partnered with Trading 212 for an exclusive rate for readers of 4.53 per cent for new clients. That includes a 12-month bonus and it is a flexible ISA.
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Outside of this exclusive rate, Moneybox has the current top rate around ISAs, offering 4.52 per cent including a bonus which you get if you keep it for 12 consecutive months. It is for new customers only and only three withdrawals are permitted each year, otherwise the rate goes down. You need £500 to open the ISA.
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Moneyfarm offers 4.48 per cent, again with a boosted rate. A £500 minimum balance is required to get the bonus rate and three withdrawals are allowed.
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Similarly, Plum have 4.45 per cent including a bonus rate if kept for 12 consecutive months and other conditions are met, while Chip offer 4.42 per cent.
Always check to see which conditions meet your needs, especially in terms of expected withdrawal numbers and whether you would be likely to move your money again if rates or bonuses change.
Outside of ISAs there are some similar rates available. While Zopa’s market-beating 4.75 per cent offer has now ended (unless you’ve already opened it of course), there are still several offering well above 4 per cent.
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Chase offer 4.5 per cent for new customers including a 12-month bonus, which is accessible once you open a current account with them. You do not specifically need to use the current account once it is open.
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Ulster Bank, which is owned by NatWest, similarly has a 4.5 per cent rate available including the bonus, but you need a minimum of £5,000 to open it and the account lasts for a year.
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After that, Cahoot (owned by Santander) offers 4.4 per cent for an account lasting a year – you always need to mark your diaries when opening this type, so you move your money afterwards. The full rate is variable.
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And finally, Chip offer 4.37 per cent for new customers only including the bonus rate. You need to open it via the app and the bonus lasts 12 months. You can have three withdrawals across 12 months without a penalty – if you make more then the rate will drop significantly.