As we approach another Bank of England base rate decision next Thursday, the markets are expecting to see a cut from the Monetary Policy Committee, writes Anna Bowes, savings expert from The Private Office.
So, ahead of that meeting, I thought I’d round up some of the most popular accounts and see how the top rates have fared recently.
Easy access
There is now more than £900bn in easy access savings accounts, according to the latest figures from the Bank of England.
Much of this is likely to be earning a poor rate of interest, especially if it is languishing with the high street banks.
There is also a staggering £301bn sitting in current accounts earning no interest at all.
There are plenty of competitive rates available, paying more than inflation and even a few paying more than the base rate of 4.5%.
But it’s important to look beyond the headline rates as many of the top accounts have restricted access and/or short-term bonus rates.
There have been small positive changes to leading accounts over the past month.
At the beginning of April, the top rate available was 4.75% and the average across the top five accounts was 4.67%. Last week, the financial app Chip launched the Chip Easy Access Saver, which has gone to the top of the table, offering 4.76% AER.
However, this account allows only three penalty-free withdrawals a year – any more and the rate drops to 2.1% for the rest of the year. In addition, it includes a 12-month bonus rate of 1.20%.
There are plenty of straightforward accounts available too.
The latest issue of Charter Savings Banks Easy Access Account (Issue 58) is paying 4.59% AER, with no bonus or restricted access.
Easy access cash ISAs
It’s another positive story in the easy access best buy table, with two more accounts paying more than 5% AER.
This means the top rates on offer are paying more than the non-ISA equivalents – even more of an incentive to make sure you use your cash ISA allowance -…
