Who has the best savings accounts rates?

Saving accounts can be a little confusing. It can be hard to tell which company has the best savings accounts rates and what type of account is right for you. There are literally thousands of savings accounts out there, but they can generally be divided into categories. These include easy access accounts, fixed rates or bonds and regular savings accounts. Below each account is explained and the best savings accounts rates available in each category.

First up is the easy access account. It is the most flexible account with the ability to withdraw any money at anytime with no penalties. The top rate online according to moneysupermarket.com is with Santander, account name Santander eSaver Issue 4. It has an interest rate of 3.10% with a bonus of a further 2.60% for the first twelve months. You have the choice between either annual or monthly interest with a minimum investment of only £1. The account is however only accessible through the internet and telephone banking. There is unlimited withdrawals and deposits with no penalties.

Next is the fixed rate account also known as bonds. These have a fixed rate interest for a certain length of time usually 3 to 5 years. They have a higher rate of interest but you must be prepared to lock away your money for that time as withdrawals are not permitted. The best rate on moneysupermarket.com is with Cahoot. Their 2 year fixed rate bond has the market leading rate of 4.01% interest. The minimum deposit is £25,000 with immediate access once the account has matured. The account can have no withdrawals or deposits during this period and the account cannot be closed.

Lastly is the regular savings accounts. This account usually has a high interest rate but with many restrictions. Most have a one year term and deposits must be made each and every month (generally between £250-£350). The Regular Saver account (preferential rate) with the HSBC has the one of the best savings accounts rates online. With an interest rate of 8% which is paid out on maturity and a minimum deposit of just £25 per month, making this a great account choice for many people. The account is accessible through the branch and telephone banking.

Take a look at moneysupermarket.com for the best savings accounts rates and more information on accounts. Also knowyourmoney.co.uk have an email alert to let you know when better rates are available, check their site for more.

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