Discover the best savings accounts UK Martin Lewis recommends for maximising your returns. Compare top interest rates and expert advice to make your money work harder
Best Savings Accounts UK Martin Lewis – Top Interest Rates
Are you making the most of your savings in the UK? With inflation going up, it’s key to make sure your money is growing. Martin Lewis, a top personal finance expert, can guide you through the best savings accounts in the UK. But are you really getting the best deal for your savings?
Savings are back in style, with rates higher than inflation. Thanks to the personal savings allowance, most people won’t pay tax on their interest. Basic-rate taxpayers can earn up to £1,000 tax-free each year, and higher-rate taxpayers up to £500.
With savings protected up to £85,000 per bank or building society, now is a great time to find the best savings accounts in the UK.
Understanding Basic Savings Account Principles
Savings accounts are key financial tools for keeping money safe and earning interest. The interest you get is usually tax-free, up to a certain limit. Easy-access savings accounts let you withdraw money anytime but often have lower interest rates than fixed-rate accounts.
Fixed-rate savings accounts, though, offer higher interest rates. But, you can’t access your money for a set time. Some accounts have special introductory rates that guarantee a minimum rate for a while. It’s important to check your account rates often and switch to new ones when these offers end. This way, you avoid getting stuck with low interest rates.
Using savings account interest calculators and keeping up with the latest savings deals, as Martin Lewis, the money-saving expert suggests, can help you get the most from your savings. This way, you can make smart choices about where to save your money.
“The key to getting the best returns on your savings is to regularly review the rates and switch to new accounts when your bonus or introductory rate ends.” – Martin Lewis
By grasping the basics of savings accounts and keeping an eye on interest rates, you can make sure your money works hard for you. This helps you reach your financial goals more effectively.
Current Top Easy-Access Savings Rates
Easy-access accounts let you take out your money anytime. But, they often have lower interest rates than other savings options. We’ve found some of the best easy-access savings rates in the UK for you.
| Account | Interest Rate (0% Tax) | Interest Rate (20% Tax) | Interest Rate (40% Tax) |
|---|---|---|---|
| Investec Flexi Saver | 4.40% | 3.52% | 2.64% |
| Atom Instant Saver Reward | 4.85% | 3.88% | 2.91% |
| Principality BS Online Bonus Triple Access 4 | 4.70% | 3.76% | 2.82% |
| Coventry BS Easy Access Saver | 4.16% | N/A | N/A |
| Family BS Market Tracker Saver | 4.65% | 3.72% | 2.79% |
| Close Brothers Easy Access 5 | 4.70% | 3.76% | 2.82% |
| Cambridge BS Your Saver | 4.25% | 3.40% | 2.55% |
| Principality BS Branch 5 Access Bonus Saver 2 | 4.20% | 3.36% | 2.52% |
Remember, these rates can change. Always check comparison sites for the latest deals. Some accounts might offer better rates for bigger balances or for current customers.
While easy-access accounts are great for quick access, think about other options too. Fixed-rate bonds or notice accounts might give you more interest if you can keep your money in for a while. Diversifying your savings can help you earn more and keep your money working for you.
Best Savings Accounts UK Martin Lewis Recommendations
Martin Lewis, a well-known personal finance expert, shares his top picks for best savings accounts UK. He focuses on accounts with high interest rates and useful features. Lewis points out that regular savings accounts are leading the way, with some providers giving up to 8% interest.
The Nationwide Regular Saver is a top choice, with an 8% interest rate and a £200 bonus for new customers. Lewis also recommends the First Direct Regular Saver. It offers a 7% fixed rate and a £175 bonus for switching, with a higher monthly deposit limit.
Other Martin Lewis money saving expert savings picks include the Saffron Building Society Regular Saver at 5.75% and the Coventry Building Society Regular Saver at 5.5%. Lewis suggests using multiple regular savers to get the most interest. This way, you can take advantage of the higher rates available.
| Provider | Interest Rate | Switching Bonus |
|---|---|---|
| Nationwide Regular Saver | 8% | £200 |
| First Direct Regular Saver | 7% | £175 |
| Saffron Building Society Regular Saver | 5.75% | N/A |
| Coventry Building Society Regular Saver | 5.5% | N/A |
By following Martin Lewis‘s advice, you can make your savings work harder for you. This way, your money will grow faster, thanks to the high interest rates.
How to Maximise Your Savings Interest
To get the most from your savings, start by spreading your money across different accounts. Use easy-access savings for emergencies and short-term goals. This way, you keep your funds flexible.
Regular savings accounts can offer high interest rates. By setting a fixed monthly deposit, you can earn more.
For big savings, look into fixed-rate bonds or high-interest current accounts. They might give you better returns, but you’ll need to keep your money there longer.
Make the most of the Personal Savings Allowance. Basic-rate taxpayers can earn up to £1,000 tax-free, and higher-rate taxpayers up to £500. For bigger amounts, spread your savings to stay within the £85,000 FSCS protection limit per bank.
By using a smart strategy and exploring different savings options, you can maximise your savings interest. This will help your wealth grow over time.
Regular Savings Accounts with Highest Returns
Regular savings accounts in the UK offer some of the best interest rates. The top rates can go up to 8% variable. These accounts have strict rules, like needing to deposit a set amount each month and not allowing many withdrawals. They are perfect for those who can stick to a savings plan to get the most from their money.
The Nationwide Flexclusive Regular Saver is a top choice, with an 8% variable rate for deposits up to £200 each month. If you can save more, the First Direct Regular Saver offers a fixed 7% rate for deposits up to £300 monthly.
| Provider | Rate | Monthly Deposit Limit | Term |
|---|---|---|---|
| Nationwide Flexclusive Regular Saver | 8% variable | £200 | 12 months |
| First Direct Regular Saver | 7% fixed | £300 | 12 months |
| Saffron Building Society Regular Saver | 5.75% variable | £100 | 12 months |
| Coventry Building Society Regular Saver | 5.5% variable | £500 | 12 months |
After the 12-month term, your money usually moves to a standard savings account. It’s key to check and switch to keep getting the best best regular saver rates and martin lewis money saving expert savings.
“Regular savings accounts are a great way for disciplined savers to boost their returns and get the most out of their money. Just be mindful of the terms and conditions to ensure you’re maximising the benefits.”
–Martin Lewis, Money Saving Expert
Fixed Rate Savings Bonds and Their Benefits
Fixed-rate savings bonds are great for those wanting a safe and steady return on their money. These bonds keep your funds locked in for a set time, usually one to five years. In return, you get higher interest rates that don’t change with the market.
One big plus of fixed-rate savings bonds is the certainty they offer. You know exactly how much your savings will grow over the bond’s life. This makes it easier to set and reach your financial goals. Plus, they’re seen as safer than riskier investments, which is good for those who prefer less risk.
| Bond Term | Interest Rate | Interest Earned on £1,000 Deposit |
|---|---|---|
| 1 Year | 4.80% | £48.00 |
| 2 Years | 4.75% | £96.73 |
| 5 Years | 4.16% | £223.88 |
When looking at high-interest savings in the UK, it’s key to weigh the interest rate against the bond term. Bonds with longer terms often have higher rates but require a bigger commitment. Think about your financial needs and goals to pick the best fixed-rate savings bond for you.
Most bonds charge a penalty for early withdrawal, but some might have exceptions or allow partial access. It’s smart to check the details of different high interest savings uk options. This way, you can find a bond that suits your needs and helps you earn more.
Cash ISAs vs Standard Savings Accounts
When looking at best cash isa rates and savings account rates comparison, it’s key to know the difference between cash ISAs and standard savings accounts. Cash ISAs let you save tax-free, while standard savings accounts are taxed after your personal savings allowance.
Basic-rate taxpayers get £1,000 of interest tax-free each year. Higher-rate taxpayers get £500. If you earn more than these amounts or are in the higher tax bracket, a cash ISA might be better. But, standard savings accounts usually have higher interest rates than cash ISAs.
Fixed-rate cash ISAs offer flexibility, unlike standard fixed-rate accounts. They let you access some of your money, making them good for those who want high rates but need to keep some cash for emergencies.
| Comparison | Cash ISAs | Standard Savings Accounts |
|---|---|---|
| Tax Treatment | Tax-free savings | Taxable above personal savings allowance |
| Personal Savings Allowance | Not applicable | £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers |
| Interest Rates | Competitive, but often lower than standard savings | Generally higher than cash ISAs |
| Flexibility | Fixed-rate cash ISAs offer some access to funds | Standard fixed-rate accounts have limited access |
Understanding the differences between cash ISAs and standard savings accounts helps savers make better choices. This way, they can maximise their savings interest and meet their financial goals.
Current Account Savings Options
Looking to boost your interest earnings? Current accounts might be a better choice than traditional savings accounts. Some UK banks offer high interest rates on balances up to £4,000-£5,000 in their current accounts. You’ll need to make a minimum monthly deposit and might have to set up direct debits.
The Nationwide FlexDirect account is a great option. It gives a 5% AER on balances up to £2,500 for the first 12 months. The Virgin Money M Plus Account also offers a 2.02% AER on balances up to £1,000. But, these high interest savings uk deals might need a credit check to qualify.
To get the most out of your savings, think about combining a high-interest current account with other savings products. This could include regular savers or fixed-rate bonds. This strategy can help you best savings accounts uk martin lewis and increase your savings.
“The key to building wealth is maximising your interest earnings, and current account savings options can be a valuable tool in that pursuit.”
Don’t forget, the Financial Services Compensation Scheme (FSCS) protects your savings up to £85,000 per person, per financial institution. With the right mix of accounts and careful monitoring, you can make the most of your savings.
Special Savings Schemes and Government Initiatives
Martin Lewis often talks about special savings schemes and government plans. These can increase your savings beyond what you get from regular interest. Two good examples are the Lifetime ISA (LISA) and the Help to Save scheme.
The Lifetime ISA (LISA) gives a 25% bonus from the government. You can save up to £4,000 a year. It’s for first-time home buyers aged 18-39.
The Help to Save scheme helps those on Universal Credit or Working Tax Credit. It offers a 50% bonus on savings, up to £1,200 over four years. This can be a big help for those with lower incomes.
There’s also the Premium Bonds, backed by the government. They don’t earn interest but offer tax-free prizes. This makes them a good choice for those looking for something different from regular savings accounts.
These special schemes and government plans show there are many ways to save. By looking into these options, you might find ways to save more than usual.
Best Building Society Savings Accounts
Looking for the best savings accounts UK Martin Lewis suggests? Building societies are a great place to start. They offer competitive savings account rates comparison and good terms for savers.
The Coventry Building Society Regular Saver is a top pick. It has a variable rate of 5.5% on monthly deposits up to £500. The Yorkshire Building Society Easy Access Saver also stands out, with flexible access to your money.
For those already with a building society, the Skipton Building Society Fixed Rate Regular Saver is impressive. It offers a 7% fixed rate for 12 months, with a max monthly deposit of £250. Building societies sometimes give better rates to locals or long-time customers. So, it’s smart to look at both national and local options.
| Building Society | Account Type | Interest Rate | Max Monthly Deposit |
|---|---|---|---|
| Coventry Building Society | Regular Saver | 5.5% variable | £500 |
| Yorkshire Building Society | Easy Access Saver | Competitive rate | Flexible |
| Skipton Building Society | Fixed Rate Regular Saver (for existing members) | 7% fixed | £250 |
When looking at the best savings accounts uk martin lewis suggests, building society accounts are worth a look. They often have great rates and extra benefits for locals or long-time customers.
How to Switch Savings Accounts Effectively
It’s important to compare savings account rates regularly. Use websites and advice from experts like Martin Lewis to find the best deals in the UK. Remember, some accounts may have notice periods for withdrawals.
For fixed-term savings, keep track of maturity dates. Set reminders to check your options. This way, you can make the most of your savings.
Switching accounts can affect your savings strategy and taxes. Use the Current Account Switch Service for a smooth move to better rates. Look out for bonuses or incentives from new providers.
By managing your savings well and switching to better rates, your money can work harder for you. Stay updated on savings account rates comparison and best savings accounts uk martin lewis to boost your savings.
FAQ
What are the best savings accounts in the UK according to Martin Lewis?
Martin Lewis suggests comparing rates and looking at account features to boost your savings. He recommends a mix of easy-access, regular savers, and fixed-rate accounts. This strategy can help you earn more interest.
What is the personal savings allowance and how does it work?
Most people won’t pay tax on savings interest thanks to the personal savings allowance. Basic-rate taxpayers can earn £1,000 tax-free each year. Higher-rate taxpayers can earn £500.
What are the current top interest rates for easy-access savings accounts?
Easy-access accounts let you withdraw money easily but often have lower interest rates. The best rates change, so it’s key to check comparison sites often. Some accounts might offer better rates for bigger balances or for existing customers.
What are Martin Lewis’ recommended regular savings accounts with the highest returns?
Martin Lewis advises regular savers for the best interest rates. Nationwide offers 8% interest on its regular saver. First Direct provides 7% fixed rate with a higher monthly deposit limit.
How can I maximise my savings interest?
To get the most from your savings, split your money across different types of accounts. Use easy-access accounts for emergencies, regular savers for monthly deposits, and fixed-rate bonds or high-interest current accounts for big sums. Make the most of the personal savings allowance and spread your money across several banks to stay within the £85,000 FSCS protection limit per bank.
What are the benefits of fixed-rate savings bonds?
Fixed-rate savings bonds offer higher interest rates if you lock your money away for 1-5 years. They provide guaranteed returns, safe from interest rate changes. These accounts are perfect for those who don’t need quick access to their savings.
How do cash ISAs differ from standard savings accounts?
Cash ISAs let you save tax-free, while standard savings accounts are taxed above the personal savings allowance. Yet, standard accounts often have higher interest rates. Fixed-rate cash ISAs offer some flexibility, unlike standard fixed-rate accounts, making them a good choice for those wanting high rates with some access to funds.
What are some current account options with high interest rates?
Some current accounts offer higher interest rates than usual savings accounts, usually up to £4,000-£5,000. Notable options include Nationwide FlexDirect and Virgin Money M Plus Account. These accounts can be attractive but might need a credit check.
What are some special savings schemes and government initiatives?
The Lifetime ISA (LISA) gives a 25% government bonus on savings for first-time home buyers aged 18-39. The Help to Save scheme offers a 50% bonus on savings up to £50 per month for Universal Credit or Working Tax Credit claimants. Premium Bonds, while not interest-bearing, offer tax-free prizes and 100% government backing.
Where can I find the best savings rates from building societies?
Building societies often have competitive savings rates. Coventry Building Society offers a regular saver at 5.5% variable rate. Yorkshire Building Society and Skipton Building Society also have good options. Building societies might give better rates to local residents or existing members.
How can I effectively switch savings accounts?
To switch savings accounts well, regularly compare rates using comparison websites and expert advice. Be aware of any notice periods for withdrawals from your current account. Set reminders to review options for fixed-term accounts. When switching, think about how it affects your overall savings strategy and tax situation. Use the Current Account Switch Service for easy current account switches if moving to a bank with better savings rates.