Best instant access savings account named -5% returns | Personal Finance | Finance

There are some rather attractive interest rates for savings accounts in the UK at the moment, giving savers some pretty high returns on the money they put away. It is important to shop around for savings accounts every couple of years. In fact, many people have had the same savings accounts for many years, even though there are many better deals out there. Some savers simply stick to the high street banks for saving their money, but other providers often have much better rates.

Consumer experts have identified the best savings accounts for Brits at the moment, including one instant access account that offers an impressive 5% interest rate. This is significantly higher than the overall UK average, which Moneyfactscompare says is below 4%. The leading savings account rate right now, according to the consumer experts at Which?, is the Cahoot Sunny Day Saver (Issue 6).

The account offers 5% AER on balances up to £3,000 for 12 months, after which funds transfer to a Cahoot Savings account at 1%.

It is a paperless account, meaning it is opened and managed online. Savers can choose to get paid interest on a monthly or annual basis.

However, savers can only earn interest on up to £3,000 for the duration of the 12 months. Any money over that amount will not earn interest, making this account a good add-on to savings pots that Brits already have.

Interest is calculated daily. Customers should also note that the rate can go up or down, which the provider can do in line with the General Savings Terms and Conditions. If the rate goes down, Cahoot will let customers know two months before the rate changes.

The 5% interest rate can see savers earning significant returns on their money. For example, people who put away £1,000 can expect to earn £50, giving them a balance of £1,050 after the 12 months.

To open the account, customers must be UK residents over the age of 16. Additionally, they should be registered for Online Banking, and provide Cahoot with and maintain a valid email address.

“You can open this account as a single or joint account (between two people),” the provider says of the account.

“You can’t open this account for someone else, e.g. in trust. You can have a maximum of two cahoot Sunny Day Saver accounts – one in your sole name and one that you hold jointly with someone else.”