Savings accounts with high interest rates?

[Shinyandnew1]

We have just paid our mortgage off (hurrah!) and would like to put the money we have been overpaying with to the best use. We are planning to do AVCs on the pension but what’s a good % interest to look for for a savings account. I know interest rates on mortgages are pushing 6%, but they don’t seem to be that on savings accounts!

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

MSE keep updated with the best rates

Savings rates are always lower than loan rates.

Do you want these savings for short, medium or long term, instant access or not?

https://moneyfactscompare.co.uk/savings-accounts/

I've got a Tandem instant access paying 5% (0.35% bonus included in that rate for one year).

Make sure you think ahead. With relatively high interest rates you can soon find you hit the savings interest tax threshold. ISAs can be slightly lower interest but the interest is tax free. Using ISA allowance may make sense.

I’ve got a Chip instant access account at 4.84%. Transfers are made within minutes.

Ford Money have excellent fixed rates and instant access. Yorkshire Building Society, NATWEST ISA are both paying good rates.

Just transferring my Coventry ISA to a new one at 5.6%. Only 2yr but apparently (according to my IFA) other ones are available at similar rates for 5yr.

Always look on moneysavingexpert

I'm sticking with my Premium Bonds rather than chasing the interest rates for the time being.

I have been very lucky with them this year and beaten 6%.

money saving expert as mentioned upthread is vg for details.
you can get 6% with rci bank on a three year bond. Recognise bank is also worth a look. One year fix with investec will get you 6%.

Yes, we are doing well this year even before they announced the recent increase but we are both max'd out so ISA's are a simple way of getting a guaranteed return.

You might need a mix.

There are some good deals to be had on smaller amounts that are flexible and allow withdrawals. The Barclays rainy day saver is 5.2% but you have to have a current account and only applies up to 5k.
YBS also have an easy saver at 4.35%.

Assuming you are not a higher rate tax payer you can earn 1k a year in interest before tax kicks in.

Fixed term ISAs are offering reasonable rates but more tied away so having a few different accounts might work best.

I have an Investec instant access account, allows up to 85k, 4.32% over 5k, nothing under. Transfers back to my current account take minutes. I know I can get higher but instant is valuable atm.

I went through all the MSE highest rate ones two or three months ago and those paying the highest have some ropey one star Trustpilot reviews when you dig through all the comments. I didn't trust them.

The rate seems to go up with BOE interest rate rises, but not by the full amount. Last rate was 4.12 when BoE was 5.00 and now it's 4.32 with BoE being 5.25.

The new ns&I 3 year green bond is 5.7% which is quite tempting. Easy to open if you are already a customer (with PB or others) and no FSCS limits.

(interest is paid once at the end of 3 years with the ns&I bond so need to watch out for tax liability)