‘I’m a pensioner with £70,000 – how can I find the best savings account for me which doesn’t require an app?’

GB News put their query on how they can track down a competitive savings account which works for them to some savings experts.

Gill, whose name has been changed, asks: “I would love to know which bank I can use for my savings. I have my money in a current account, and it is not earning any interest.

​“For ages now I have been unable to choose a bank I can trust that does not require an ‘app’.

“Obviously I am losing out, especially with inflation. The thing is my trust has been affected by what’s going on in the world right now and the financial instability.”

Gill has £70,000 of savings and needs access to around £30,000 of it in case of household repairs.

Kevin Mountford, savings expert for Raisin.co.uk, replies: "Unfortunately, you aren't alone. Currently, billions of pounds are not earning any interest in current accounts. I apologize, but I want you to know that you aren't alone in having your savings not earning any interest in current accounts.

“The good news is that interest rates are still high, and it's a great opportunity to act if you want to start seeing your savings pay back in high interest. Typically, the larger high-street banks have been slow in passing through any interest rate to customers, and while rates have improved slightly, they are still nowhere near the top of the tables.

“However, for your £30,000, I suggest going for Metro Bank's Easy Access Savings account, which currently offers the best rate at 5.22 per cent. It can be opened online or in a branch and is fully FSCS-protected, ensuring that your money is secure. Easy access accounts are variable, though, and while rates are currently above five per cent, they may decrease eventually. Therefore, keep an eye on the market and be ready to move if it drops significantly.

“If you have a £70,000 nest egg, I recommend locking the money away in a fixed-rate bond. Currently, the one-year fixed deals are very high, but the three and four-year accounts offer the best returns. Protected from any reductions in interest rates, they'll weather the effect of inflation much better than shorter terms.”

Carolyn Matravers, director at Bluebell Financial Management explains: “Comparison sites are really helpful in this situation (such as Moneyfactscompare.co.uk) which identifies the best rates for instant, notice and fixed rate accounts, but also whether you can apply for these accounts through the post or by telephone, which can save a lot of time and angst if you feel uncomfortable using an app.”

Rachel Springall, finance expert at Moneyfactscompare.co.uk says: “Any saver who wants quick access to their cash would be wise to use either an easy access savings account or a current account, as they allow flexibility. However, savers must check the terms and conditions as some deals can have withdrawal restrictions.

“As it stands, the best easy access savings rates are on offer are from challenger banks and building societies, which includes Skipton Building Society and Virgin Money.

“Building societies are different from the biggest high street banks and tend to offer a fair deal to their customers in line with their principles.

“As always, savers would be wise to always make sure a firm is protected by the FSCS in the first instance.”

The FSCS, which stands for Financial Services Compensation Scheme, protects up to £85,000 per person per financial institution. People can check if their money is protected via the online protection checker.

Following an increase in interest rates being offered on savings, people could find they end up having to pay tax on their savings interest if their money isn’t in an ISA and they breach allowances such as their personal savings allowance.

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Moneyfactscompare.co.uk lets people specify the amount of savings they wish to put away in the account, plus how they wish to open and manage the account.

For example, Moneyfacts’ best six easy access savings accounts for a £30,000 lump sum, with account opening and management via branch, post and/or telephone are as follows:

Figures correct at the time of writing on December 12, 2023.

1. Metro Bank Instant Access Savings Account – 5.22 per cent AER (variable) including a bonus
2. Ulster Bank Loyalty Saver – 5.20 per cent AER (variable)
3. Earl Shilton Building Society Bonus One Account – 5.15 per cent AER (variable)
4. Kent Reliance Easy Access Account - Issue 66 – 5.06 per cent AER (variable)
5. Skipton Building Society Branch Base Rate Tracker Issue 5 – 5.06 per cent AER (variable)
6. Skipton Building Society Base Rate Tracker Issue 5 – 5.06 per cent AER (variable)

For the same conditions, the money comparison website’s nine best easy access cash ISAs are:

1. Metro Bank Instant Access Cash ISA – 5.11 per cent AER including a bonus
2. Kent Reliance Cash ISA - Easy Access - Issue 45 – 4.82 per cent AER
3. Principality Building Society Branch 5 Access Bonus Cash ISA – 4.80 per cent AER including a bonus
4. Virgin Money Easy Access Cash ISA Exclusive Issue 2
5. Newcastle Building Society Newcastle Double Access ISA (Issue 1)
6. Loughborough Building Society Access x1 Cash ISA
7. Dudley Building Society Cash ISA Instant Access Issue 19
8. Skipton Building Society Branch Cash ISA Tracker Issue 5
9. Skipton Building Society Cash ISA Tracker Issue 5

Meanwhile, Moneyfacts’ best seven fixed rate ISAs for a £40,000 lump sum, with account opening and management via branch, post and/or telephone are as follows:

1. Virgin Money 1 Year Fixed Rate Cash ISA Exclusive Issue 9 – 5.50 per cent AER
2. Metro Bank 1 Year Fixed Rate Cash ISA – 5.41 per cent AER
3. Kent Reliance Cash ISA 1 Year Fixed Rate - Issue 87 – 5.21 per cent AER
4. Newcastle Building Society 1 Year Fixed Rate ISA (Issue 76) – 5.20 per cent AER
5. Barclays Bank 1-Year Flexible Cash ISA - Issue 51 – 5.20 per cent AER
6. Cumberland Building Society 1 Year Fixed Cash ISA – 5.20 per cent AER
7. M&S Bank M&S Cash ISA Fixed Rate Savings Option (Issue 45) - 5.20 per cent AER