Best savings account in December paying bumper 7.85% | Personal Finance | Finance

December 3, 2024 4,681

Savers are being urged to act quickly to secure interest rates as returns continue to decline month by month.

According to new research by Moneyfactscompare, savings interest rates are trending downward following the second Bank of England base rate cut this year.

Average one-year fixed bond rates have dropped to 4.24%, the lowest since June 2023, while longer-term fixed bonds now average 3.89%, their lowest point since March 2023.

However, some savings accounts are still paying rates of up to 8% AER.

Rachel Springall, finance expert at Moneyfacts, said: “Savers may be disappointed to see savings rates fall, but in positive news there has been a bit of life injected into the market as more providers enter the fray.

“Product choice now stands at its second highest level on our records and the variety of savings providers has reached a record high. These moves could instil a sense of optimism for savers who feel let down by the more familiar high street banks, as new challengers are more eager to attract deposits to fund their future lending.”

However, she noted: “The months ahead will be challenging for both providers to keep abreast of rate adjustments and for savers to move quickly to secure a new deal.”

According to Bank of England data, £252billion is currently sitting in UK current or savings accounts earning no interest whatsoever.

Ms Springall said: “It will be up to consumers to make time to move their hard-earned cash into an account which not just pays interest, but also provides a real return against the eroding impact of inflation, which is expected to stay above 2% for some time yet.”

Here is a list of the savings accounts offering the highest interest rates at the time of writing, according to Moneyfacts data.

Best easy-access savings accounts

Here are the top 10 easy-access savings accounts this week:

Atom Bank – 4.85% AER / 4.75% gross
Principality Building Society – 4.85% AER/ gross
Monument Bank – 4.81% AER / 4.71% gross
Ulster Bank – 4.75% AER / gross
Chetwood Bank – 4.71% AER / 4.61% gross
Earl Shilton BS – 4.70% AER / gross
Close Brothers Savings – 4.70% AER / gross
Secure Trust Bank 4.65% AER / 4.55% gross
Family Building Society – 4.65% AER / gross
Vanquis Bank – 4.65% AER/ gross.

Best regular savings accounts

Here are the top 10 regular savings accounts this week:

Principality BS – 8% AER / 7.85% gross
First direct – 7% AER/ gross
The Co-operative Bank – 7% AER/gross
Principality BS (Christmas Saver) – 7% AER/gross
Nationwide BS – 6.50% AER/gross
Vernon Building Society – 6.50% AER/ gross
Lloyds Bank – 6.25% AER/gross
NatWest – 6.17% AER / 6% gross
Royal Bank of Scotland – 6.17% AER / 6% gross
Market Harborough BS – 6% AER/gross.

Best fixed-rate savings accounts

Here the top three savings accounts with a one, two and three-year fixed rate this week:

One-year fixes:

Al Rayan Bank – 4.80% Expected Rate
Ziraat Bank – 4.80% AER / gross
SmartSave – 4.77% AER / gross.

Two-year fixes:

United Trust Bank – 4.61% AER/ gross
Atom Bank – 4.60% AER/ gross
Bank of Ceylon (UK) (Raisin UK) 4.52% AER/gross.

Three-year fixes:

Al Rayan Bank – 4.60% Expected Rate
Atom Bank – 4.60% AER/gross
GB Bank (Prosper) – 4.60% AER/ gross.

Best Cash ISAs

Here are the top 10 easy access cash ISAsthis week:

Plum – 5.18% AER / 5.11% gross
Moneybox – 5.17% AER / gross
Trading 212 – 4.90% AER / 4.78% gross
Principality BS – 4.85% AER / gross
Monument Bank – 4.76% AER / 4.66% gross
West Brom BS – 4.75% AER/ gross
Chip – 4.58% AER / gross
Chorley Building Society – 4.55% AER / gross
Leeds BS – 4.55% AER/ gross
Loughborough BS 4.55% AER / gross

Here are the top 10 Cash ISAs with a one-year fixed rate this week:

Castle Trust Bank – 4.52% AER / gross
Secure Trust Bank – 4.51% AER / gross
Hampshire Trust Bank – 4.50% AER / gross
Shawbrook Bank – 4.49% AER / gross
Close Brothers Savings – 4.49% AER / gross
Cynergy Bank – 4.48% AER / gross
Kent Reliance – 4.48% AER / gross
Virgin Money – 4.46% AER / gross
Charter Savings Bank – 4.45% AER / gross
UBL UK – 4.41% AER / gross.