It pays to use online-only accounts

Branch-based bank accounts can be convenient, but for the best rates you need to go online, says Ruth Jackson. Plus, a round-up of the rest of the week's personal finance news.

Northern Rock has launched a new 90-day notice branch-based account paying 2.5% interest on balances from £1. The account beats the branch-based accounts on offer from other big banks, says Patrick Collinson in The Guardian. Halifax pays 1.5% for the first year on its Guaranteed Saver Reward account, but that drops to 0.5% after a year.

But you could do better with United National Bank's branch-based notice account, which pays 3.02%. For the best returns you should look at internet-only accounts. Their rates tend to be higher as the running costs are lower.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.