Best Saving Account Interest Rates

Saving account interest rates have dropped dramatically over the past few years due to the recession, meaning those who worked hard to save their cash found themselves punished by low return rates. It's now more important than ever to scour the market for the best saving rates and saving account types.

As well as considering saving account interest rates you need to look at other options available to your savings account. Think about:

  • When the interest is paid. Is it monthly or annually? In general this really won't affect your account too much as all interest is calculated annually anyway, but it could influence your overall return slightly and impact your finances alongside other options on the account.
  • What type of penalties and limits are included on the account. How many times can you withdraw cash without being charged? How many times can you make deposits and how much can you put in per month? This is also where the monthly or annual interest comes into play; what you withdraw and deposit each month may be influenced by the rate at which interest is added.
  • Is there a minimum deposit? Does this apply per month, per year or just when opening the account?
  • Can you have instant access to your money in an emergency or do you have to give a notice period? Most providers would ask for 30 days notice in the past but flexible saving accounts are now available with instant access.

On average, the best saving account interest rates are provided by Lloyds TSB (3.75%), Ing Direct (3%), Nationwide (3.1%) and Tesco Bank (2.9%). However, other extras and factors will effect how well the account works for you. To provide a better overview of the type of saving accounts available, try using price comparison websites or talk to an independent financial advisor.

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