Top 5 easy access savings accounts paying up to 4.8% interest | Personal Finance | Finance
Thousands of pounds are sitting idle in current accounts earning no interest, yet top-paying easy access savings accounts are offering up to 4.8% AER. Savers are being urged to review their accounts and consider switching to more competitive deals.
Research from Spring, a savings app owned by Paragon Bank, showed more than six million current accounts with balances of £10,000 or more are earning no interest. A staggering 323,000 accounts have a balance of £100,000 or more. Derek Sprawling, head of money at Spring, said: “There is a sizeable number of current accounts that contain large balances of over £10,000 earning zero interest. That money is being eroded in value and could be generating much better returns if moved to a savings account offering a rewarding rate of interest.”
The average balance of accounts containing £10,000 or more, earning zero interest, stands at £34,857. However, Spring’s calculations show that if that balance were moved into a savings account paying at least 4.30% interest, it would generate £1,529 a year.
Mr Sprawling continued: “Our research shows that apathy and anxiety are often a barrier for people to switch money from their current account to a savings account.”
With that in mind, easy-access accounts may be a good option, as the terms are typically more flexible. They allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements.
Here is a list of the easy-access savings accounts offering the highest interest rates at the time of writing, according to Moneyfacts data.
Top easy access savings account
Ranking top of the list is Chip’s Instant Access Account with an Annual Equivalent Rate (AER) of 4.8%. The rate includes a 1.99% bonus for three months, after which the rate will drop, making it key for savers to review at this point to ensure they’re still receiving competitive returns.
Savers can launch the account with a minimum deposit of £1, and interest is paid monthly. Up to £1million can be deposited overall, and there are no restrictions on withdrawals.
Chase’s Saver with Boosted Rate offers an interest rate of 4.5% AER. The rate includes a 1.94% bonus for a 12-month period.
There is no minimum deposit requirement, and up to £3million can be saved overall. Interest is paid monthly, and there are no restrictions on withdrawals.
Revolut’s Instant Access Savings Ultra account also offers an AER of 4.5%. The account comes with a £45 monthly fee, and interest is paid daily.
There is no minimum deposit requirement, and a total of up to £200,000 can be saved overall. There are no restrictions on withdrawals.
Sidekick’s Multi-Shield Account offers an AER of 4.48% on a minimum deposit of £10,000. A slightly lower rate of 3.43% is applied to the portion of the balance that exceeds £85,000.
The rate includes 1% bonus for six months from £10,000 to £85,000. Interest is paid monthly, and there are no restrictions on withdrawals.
Snoop’s Easy Access Savings Account (Issue 2) places fifth with an AER of 4.35%. A minimum deposit of £1 is required to open the account, and a maximum of £85,000 can be saved overall. Interest is paid daily, and there are no restrictions on withdrawals.
