Best savings accounts this week as two banks offer 5.20 per cent interest on easy access savings

However, there are inflation-beating options out there, after UK inflation increased by 3.2 per cent in the year to March 2024.

Despite fixed rates typically offering a greater return in exchange for locking one's money away, there are currently two easy access savings accounts paying 5.20 per cent.

These rates are offered on cahoot's Sunny Day Saver, on savings between £1 and £3,000, while Ulster Bank pays 5.20 per cent on balances of £5,000 and over.

SmartSave and Allica Bank are paying 5.17 per cent via their fixed rate bonds, but both have a minimum investment of £10,000.

The best buy for cash ISAs, fixed for one year, is currently Virgin Money, paying 5.05 per cent on a minimum investment of £1.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The fluctuation of rates across the top rate tables should encourage savers to review and switch their account if they are not being rewarded for their loyalty.”

Fixed rate savings accounts

“There has been a notable number of providers moving in and out of the top rate tables since the beginning of last week, one of the most notable changes in our Moneyfacts Best Buys was SmartSave and Alica Bank’s market-leading one-year fixed bonds that pay 5.17 per centAER / gross," Springall said.

"There was lots of activity towards the top of the one-year bond chart, OakNorth Bank dropped out of the top ten, as did MBNA, but Beehive Money and Hodge Bank managed to keep a place after slight rate cuts.

"However, jumping into the tables were Atom Bank, Hampshire Trust Bank and Al Rayan Bank, which all pay over five per cent.

For savers who are happy to fix for longer, there has been a shuffle within the two-year fixed rate bond table, Springall said.

"SmartSave now leads at 5.08 per cent AER / gross, but a week ago the top rate was higher at 5.10 per cent from iFAST Global Bank, which got reduced and fell out of the top 10.

"Another boost to this area of the market came from RCI Bank UK and Atom Bank which increased the rates on their two-year fixed bonds, and Hampshire Trust Bank launched a new deal – all of which sit in the top 10.

Best one-year fixed savings accounts:

• SmartSave 5.17 per cent AER/gross
• Allica Bank 5.17 per cent AER/gross
• Close Brothers Savings 5.16 per cent AER/gross
• Atom Bank 5.15 per cent AER/gross
• Hampshire Trust Bank 5.10 per cent AER/gross
• Hodge Bank 5.10 per cent AER/gross
• Zenith Bank (UK) Ltd 5.10 per cent AER/gross
• Al Rayan Bank 5.10 per cent AER/5.01 per cent gross
• Beehive Money 5.10 per cent AER/gross
• Tandem Bank 5.07 per cent AER/gross

Easy access savings accounts

There was "little movement" in the easy access top rate tables since last week, however, Cynergy Bank and Post Office Money did cut their rates, having been paying more than five per cent.

• cahoot 5.20 per cent AER/gross
• Ulster Bank 5.20 per cent AER/gross
• Monument Bank 5.01 per cent AER/4.90 per cent gross
• Close Brothers Savings 5.00 per cent AER/gross
• Kent Reliance 4.96 per cent AER/gross
• Oxbury Bank 4.94 per cent AER/4.83 per cent gross
• Charter Savings Bank 4.93 per cent AER/gross
• Wealthify 4.91 per cent AER/4.80 per cent gross
• Hampshire Trust Bank 4.90 per cent AER/gross
• Secure Trust Bank 4.90 per cent AER/4.79 per cent gross

Best easy access savings accounts with bonus:

• Principality Building Society 5.00 per cent AER/gross
• Cynergy Bank 5.00 per cent AER/gross
• Tesco Bank 4.81 per cent AER/gross
• Principality Building Society 4.80 per cent AER/gross
• Marcus by Goldman Sachs 4.75 per cent AER/4.65 per cent gross
• SAGA 4.75 per cent AER/4.65 per cent gross
• Post Office Money 4.75 per cent AER/gross
• Sainsbury's Bank 4.40 per cent AER/gross
• Post Office Money 4.10 per cent AER/gross
• TSB 2.92 per cent AER/2.89 per cent gross

Regular savings accounts

Principality Building Society has launched a new regular savings account, offering six per cent AER/gross variable, fixed for one year.

• The Co-operative Bank 7.00 per cent AER/gross
• Nationwide Building Society 6.50 per cent AER/gross
• NatWest 6.17 per cent AER/gross
• Royal Bank of Scotland 6.17 per cent AER/6.00 per cent gross
• Principality Building Society 6.00 per cent AER/gross
• West Brom Building Society 6.00 per cent AER/gross
• TSB 6.00 per cent AER/gross
• Saffron BS 5.75 per cent AER/gross
• Principality Building Society 5.50 per cent AER/gross
• Halifax 5.50 per cent AER/gross

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Cash ISAs

“Those looking to utilise their ISA allowance will find lots of movement to fixed rate Cash ISAs, with Virgin Money now leading the one-year fixed table at 5.05 per cent AER / gross," Springall said.

"Shawbrook Bank also launched some decent rates across one, two, and three-year fixed terms with its three-year fixed Cash ISA leading the market at 4.40 per cent AER / gross, also joined by OakNorth Bank, which increased its rate by 0.01 per cent."

Best one year fixed rate cash ISAs:

• Virgin Money 5.05 per cent AER/gross
• Punjab National Bank (International) Limited 4.80 per cent AER/gross
• Shawbrook Bank 4.71 per cent AER/gross
• OakNorth Bank 4.70 per cent AER/4.60 per cent gross
• Cynergy Bank 4.70 per cent AER/gross
• Charter Savings Bank 4.70 per cent AER/gross
• Marsden Building Society 4.70 per cent AER/gross
• Close Brothers Savings 4.70 per cent AER/gross
• Newcastle Building Society 4.65 per cent AER/gross
• Virgin Money 4.65 per cent AER/gross

Best variable rate cash ISAs

• Plum 5.17 per cent AER/5.06 per cent gross
• Moneybox 5.16 per cent AER/gross
• Chip 5.10 per cent AER/4.99 per cent gross
• West Brom Building Society 5.10 per cent AER/gross
• Zopa 5.08 per cent AER/4.96 per cent gross
• Marsden Building Society 5.05 per cent AER/gross
• Furness Building Society 5.01 per cent AER/gross
• Newcastle Building Society 5.00 per cent AER/gross
• Earl Shilton Building Society 5.00 per cent AER/gross
• Teachers Building Society 5.00 per cent AER/gross