Finding the best savings account: it should be easier
There's more than £160 billion in savings accounts paying less than 0.5%. Banks should make it easier to find the best account
It’s official: the savings market doesn’t work well for customers, especially if they are ‘loyal’ and longstanding customers. That’s the view of the financial regulator, the Financial Conduct Authority (FCA). It’s been investigating the savings market and it’s found that £160 billion is in savings accounts earning 0.5% or less. What’s likely to change and how can you get the best deal?
Pensioner bonds are on sale - paying 4% interest over three years and 2.8% over one year
If you’re aged 65 or over, you’ll be able to save up to £10,000 in each bond. But some women will lose out
The government's 65+ bond or ‘pensioner bonds’ are on sale. These fixed rate, fixed term savings accounts are available to anyone in the UK who’s aged 65 or over (but not to women of stage pension age below 65). You’ll be able to buy them direct from National Savings & Investments. The interest rates, at 2.8% over one year and 4% over three years, are much higher than anything else you can get on the market at the moment.
If you want a better interest rate, you should consider regular savings accounts
If you want to get the best interest rates on your bank or building society savings, a regular savings account could be the answer. As you’d expect, the idea is that you have to save a regular amount every month. Some let you save as little as £10 a month and you may be able to save several hundred pounds a month. You can normally ‘miss’ one or two payments and still keep the high interest rate. The catch? Well, the only catch is that you are limited in how much you can save.