With interest rates close to zero, finding a decent return on your savings is nearly impossible.“A decade ago... the average instant-access savings account paid 0.79%,” says Laura Shannon in The Mail on Sunday. “Today, high-street banks are disgracefully paying just 0.01% on such accounts – equivalent to a tenth of the Bank of England’s base rate of 0.1%.”
However, there are better rates available. “Don’t deposit your money with high-street banks – there are better rate elsewhere. Although you might need to choose a brand name you’ve not heard of before, you can do so safely,” says Anna Bowes, co-founder of Savings Champion.
For example, the best one-year bonds pay 1% or more and are offered by Tandem, Zopa Bank, OakNorth Bank and United Trust Bank. You can earn 1% on a 35-day notice account from Pakistani bank UBL. The account can be opened in person or by post with as little as £1. Al Rayan Bank and BLME are Shariah-compliant banks offering the best long-term fixed rate bonds: 1.42% and 1.5% on three and five-year terms respectively.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
For the best instant-access savings look at app-based Atom Bank, which is paying 075%. Deposits in all of these accounts are protected by the Financial Services Compensation Scheme up to £85,000 per person.
-
Families suffer £20,000 lost income growth – are you feeling the pinch?Average incomes for working age families have increased by just 7% in the past two decades, research suggests
-
How to achieve a secure retirement, as more retirees admit to struggling with debtTwenty-six percent of retirees now have unsecured debt – a sharp rise compared to two years ago – with many underestimating how much a typical retirement costs
-
What is the Enterprise Investment Scheme and should you have one?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
Self-employed? Start saving for your pension nowBritons who are self-employed have neglected to build up their retirement fund. They must act now
-
Why is Britain's industrial base crumbling?Opinion More and more factories in the UK are closing, and the government doesn’t seem to care. What’s going on?
-
Scotland's former first minister Nicola Sturgeon leaves behind a toxic legacyOn the left, Nicola Sturgeon is seen as something of a political hero. That makes sense… but only if you exclude her actual record in office
-
Car finance mis-selling judgment could be a big blow for the banksOpinion The car finance mis-selling judgment could still be disastrous for big finance even though banks dodged the worst possible outcome
-
Why strong currency is the key to upward mobilityChange your social status and your life by saving money in strong currencies, says Dominic Frisby
-
A new wealth tax is a terrible idea. The rich are already being hit by sneaky taxes – Merryn Somerset WebbOpinion Ideologues want to squeeze more tax out of the rich with a wealth tax. They’re already wrung dry, says Merryn Somerset Webb
