The U.K. savings account market is very competitive. With so many players in the market, how is it possible to make sure that your money is placed in the best bank? This article provides an overview of the U.K. savings market and lists some of the top performers in the market today.
Types of savings account available in the U.K. today
There are 12 mainstream types of savings account available in the U.K. today. In this article, three of the most popular schemes will be overviewed. They are: Easy access These accounts provide interest while, at the same time, it is possible to make withdrawals on a flexible basis without penalty. Fixed rate bond They require a deposit to be made and the pay-out come at the end of the term of the bond. It is not possible to access the money until the bond expires. Regular savings accounts These accounts allow for monthly savings. However, like the bond system, the money cannot be taken out until the end of the term which tends to be 12 months.
Top interest accounts
The listings below represent the top three interest accounts within each of the categories outlined above. Interest rates are accurate as of July 2011, and the interest rates are in Annual Equivalent Rate (AER). Easy Access Coventry BS Poppy online saver It provides 3.1%, with a 1.1% bonus for the first 12 months. This account only requires £1 in order to initialise it. Nationwide My Save Online Plus This delivers 3.05%, with 1.51% bonuses for the first 12 months. However, it requires £1,000 in order to start the account. ING Direct Savings account It provides 3.0% interest, with 2.46% gross bonus for the first 12 months. This account requires only £1 initialise it. One year fixed bond Yorkshire one year fixed account provides 3.5% interest with a deposit of £1,000. Post Office one year online bond provides 3.41% interest with a minimum deposit of £5,00. Santander one year fixed bond delivers 3.15% interest with an opening deposit of only £1. Regular savings accounts HSBC Regular Saver delivers 8.0% on an investment of £25 to £250 per month for one year. Northern Rock Regular Saver provides 4.0% for one year on monthly payments from £1 to £250. Santander Fixed Rate Monthly Saver provides 4.00% interest on £20 to £250 per month over 13 months.