Best savings accounts this week: Savers urged 'act quickly to grab top rates' as provider offers over 10% interest

High street banks and building societies, including Nationwide, NatWest and Royal Bank of Scotland, are taking action after the Bank of England's decision to slash the base rate earlier this month.

The Bank of England cut the interest rate from 5.25 per cent to five per cent following seven consecutive decisions to freeze it. Before this, there had been 14 consecutive base rate hikes since December 2021.

The average interest rate Britons are getting on their easy-access savings accounts is 2.39 per cent, despite the best rate being over five per cent.

Britons are urged to secure high rates while they can.

Rachel Springall, finance expert at Moneyfactscompare.co.uk said: “Over the past week the biggest focus on savings rate cuts has been on fixed rate bonds and ISAs with a term of two years and over, which has led to a notable shuffle in the market-leaders.

"The cuts make it essential for savers to act quickly to grab a top rate, particularly if they want to earn a fixed five per cent or more, as these options are dwindling.

“The rate cut momentum to fixed rates continues this week, with longer-term deals suffering the most. The base rate cut of 0.25 per cent has slowly trickled through the market and providers are making moves to re-align their market position.

"There are still some decent deals to grab and savers would be wise to compare deals online to keep on top of any rate changes.”

Best regular savings accounts

Here is a full list of the best regular savings accounts on offer for the week beginning August 19, 2024:

• Virgin Money - 10.38 per cent AER/ 10 per cent gross
• Principality BS - Eight per cent AER / 7.8 percent gross
• The Co-operative Bank - seven per cent AER/gross
• Nationwide BS - 6.50 per cent AER/gross
• NatWest 6.17 per cent AER/ six per cent gross
• Royal Bank of Scotland - 6.17 per cent AER/ six per cent gross.
• Principality BS - six per cent AER/gross
• West Brom BS six per cent AER/gross
• TSB - Six per cent AER/gross
• Saffron BS 5.75 per cent AER/gross

Best fixed-rate savings accounts

Here is a full list of the best savings accounts with a one-year fixed rate for the week beginning August 19, 2024:

• Union Bank of India (UK) Ltd 5.25 per cent AER / gross
• Union Bank of India (UK) Ltd5.25 per cent AER / gross
• Mizrahi Tefahot Bank Ltd 5.16 per cent AER / gross
• Al Rayan Bank 5.13 per cent AER / gross
• ICICI Bank UK - Five per cent AER / gross
• HBL Bank UK - Five per cent AER / gross
• Ziraat Bank - Five per cent AER / gross
• Habib Bank Zurich plc - Five per cent AER / gross
• Habib Bank Zurich plc - Five per cent AER / gross
• Close Brothers Savings - Five per cent AER / gross

Best cash ISAs

Here is a full list of the best cash ISAs with a one-year fixed rate attached for the week beginning August 19, 2024:

• Virgin Money - 5.05 per cent AER / gross
• Nottingham BS - 4.85 per cent AER / gross
• Punjab National Bank (International) Limited - 4.80 per cent AER / gross
• Kent Reliance - 4.75 per cent AER / gross
• UBL UK - 4.75 per cent AER / gross
• United Trust Bank - 4.70 per cent AER / gross
• Close Brothers Savings - 4.70 per cent AER / gross
• Melton BS - 4.65 per cent AER / gross
• Santander -4.62 per cent AER / gross
• Charter Savings Bank - 4.61 per cent AER / gross

• Trading 212 - 5.20 per cent AER / 5.07 per cent gross
• Progressive BS - 5.05 per cent AER / gross
• Tipton & Coseley BS - 5.01 per cent AER / gross
• Principality BS - Five per cent AER / gross
• Newcastle BS - Five per cent AER / gross
• Paragon Bank - 4.95 per cent AER / gross
• Plum - 4.92 per cent AER / 4.82 per cent gross
• Chorley Building Society - 4.85 per cent AER / gross
• Teachers BS - 4.85 per cent AER / gross
• Chip - 4.84 per cent AER / 4.74 per cent gross

Best easy-access savings accounts

Here is a full list of the best easy-access savings accounts without a bonus attached for the week beginning August 19, 2024:

• cahoot - 5.20 per cent AER / gross
• Ulster Bank - 5.20 per cent AER / gross
• Monument Bank - 4.91 per cent AER / 4.80 per cent gross
• Paragon Bank - 4.91 per cent AER / gross
• Close Brothers Savings - 4.90 per cent AER / gross
• Monument Bank - 4.87 per cent AER / 4.76 per cent gross
• cahoot - 4.85 per cent AER / gross
• Secure Trust Bank - 4.81 per cent AER / 4.71 per cent gross
• Scottish BS - 4.81 per cent AER / gross
• Leeds BS - 4.80 per cent AER / gross

Here is a full list of the best easy-access savings with a bonus attached for the week beginning August 19, 2024:

• Principality BS - Five per cent AER / gross
• Cynergy Bank - 4.80 per cent AER / gross
• Tesco Bank - 4.61 per cent AER / gross
• Principality BS - 4.60 per cent AER / gross
• Beehive Money - 4.60 per cent AER / gross
• Post Office Money® - 4.55 per cent AER / gross
• Marcus by Goldman Sachs® - 4.30 per cent AER / 4.22 per cent gross
• SAGA - 4.30 per cent AER / 4.22 per cent gross
• Post Office Money® - 4.10 per cent AER / gross
• Sainsbury's Bank - Four per cent AER / gross

• US ‘teetering on the possibility of recession’ amid hints of interest rate cuts
• Energy bills alert as price cap forecast to rise to £1,714 in October
• DWP benefits clampdown as carer warned of prosecution after wrongly claiming money

Springall continued: "Savers must keep a close eye on the rates if they want to secure a guaranteed return of over five per cent over the next 12 months.

“Savers who want to secure a guaranteed return over next two years will find the market-leaders have changed this week. The top position now belongs to Nottingham Building Society at 4.80 per cent AER, as Secure Trust Bank withdrew its deal.

“Beehive Money also withdrew its two-year bond, which is why savers must not assume top deals will stay on the shelf for long. The top rates in this area of the market are largely offered by Challenger Banks, so the rates and products on offer and come and go quickly if they are paying far higher than their peers.

“More rate cuts were evident for three-year fixed bonds, Birmingham Bank replaced its bond with a lower rate offer and lost its market-leading position, now held by UBL UK at 4.63 per cent AER.

“There are many cuts in this arena, including those from Oxbury Bank, Cynergy Bank, United Trust Bank, but there were also withdrawals from Secure Trust Bank and Beehive Money. This area of the market remains competitive space for savings providers to compete on price to secure deposits for their future lending between short and longer-term bonds.”