Best cash savings account for interest?

[Ilikeyoursleeves]

Hi I'm looking to move some savings from my Premium Bonds to a fixed term savings account, for a better return. PB's are giving me about 2.5% return which isn't great.

I have a S&S isa already so wasn't sure about putting some more in that or whether to open a separate cash savings account so I'm guaranteed some interest back. I was looking at Metro Bank but it looks like they've been a bit wobbly lately so could be risky going with them?

Anyone have any good suggestions? Thanks

M&S Bank are doing a one, two, or three year fixed rate bond, with good interest rates and the ability to exit at a relatively low cost.

I am also considering cashing in my PB because of relatively low returns.

Good in what regard? As long as the bank is guaranteed you're choosing a commodity product and presumably the interest rate for the time period you want to lock your savings away is the only relevant factor

What are your long term goals?
Have you put as much into tax efficient savings as you can i.e. pension, ISA etc?

First Direct has a 7% account into which you are limited to a £300 per month payment (or less).

I have an Investec instant access savings account, I think the minimum deposit is 5k. Rate is currently 4.6% and they are very quick to raise it when the BoE raise interest rates (and sometimes before they do).

I went through all of the Martin Lewis lists of the highest paying interest access accounts, and this is the first one I came across from highest to low where their one star Trustpilot reviews didn't worry me. Some of the feedback on the top paying ones are shocking.

Whenever I transfer back, it's in my current account within five minutes.

I've a Marcus instant account (no penalties) who are paying 4.75%.

How much have you got to put in?
The best rates are usually on regular savers where you can only add a fixed amount each month. Not much good if you have a large lump sum though.

Money saving expert is very useful for comparisons.

Atom instant access is over 4% at the moment, and I have HSBC and Halifax regular savers at 5 and 5.5%- but those have a max of £250/month and penalties for withdrawal.

P Bs and ISA interest is tax free,
ordinary saving accounts and bonds you will have to pay income tax on any interest over £1000. Not hard to achieve these days, so top up your ISA first and be careful how much you move from the PBs

I have a s&S isa with loads left for this years tax allowance but part of me worries I won't get a return even though it's a long term investment. Hence wondering about putting money into a cash isa or savings account instead. I have about £12k to save / invest so would be moving a lump sum over

I'd work through Money Supermarket recommendations if I were you.

The "headline" rates (like First Direct, above) usually limit you to much smaller amounts. Obviously, great, if that is where you are with your finance, but not much use to people who want to get some reasonable interest on five - twenty thousand as a lump sum.

I have been happy with Chase at 4.1% but very instant access I use it to move money about and then vanguard for my stocks and shares long term savings. Which tbh rate is bad right now for me but I just have to keep reminding myself S&S is the long game lol.

I have a Moneybox cash isa 5%

Metro bank instant access account pays 5.22%.

Compare them in comparison sites to find the best rate if that's what your goal is? If you're likely to pay tax in your interest then take that into account as you won't in your ISA.