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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 11/06/2020

Savers are finding it harder to find the best savings deals as rates continue to be cut and some market leading accounts, such as the easy access Online Savings Account from Marcus by Goldman Sachs, are closed off from the open market. We investigate where savers can find the best rates and maximise their returns without risk to their funds. Savers will need to be prepared to put in some work to obtain the best returns for every pound of their savings pot.

The best interest rate for easy access savings is now from a bank account

Those who have less than £3,600 to save will get the best return from a bank account from Virgin Money or by looking at a regular savings accounts from first direct, HSBC and M&S Bank.
Virgin Money has relaunched its current account with a credit interest rate of 2.02% AER for balances up to £1,000, earning £20.20 if the full £1,000 is maintained for the year. Savers can deposit more into this bank account but will not earn any interest over £1,000.
The top paying regular savings accounts follow next, with 2.75% AER fixed for 12 months available from first direct, HSBC and M&S Bank. Savers will need to already have a specific bank account with the relevant bank to be eligible for these regular savings accounts. Savers can deposit between £25 and £300 each month but must make sure they do this every month and cannot access their funds before the 12-months is over to avoid any penalties or account closure. Those saving the maximum £3,600 over 12-months can earn £54.09 in interest.
The best easy access savings account currently available is from National Savings & Investments at 1.16% AER. a single deposit of £3,600 would earn £41.76 over 12 months with interest paid monthly.

Open a fixed rate bond for a guaranteed return on a larger deposit

Those with larger sums to invest will get the best returns from a fixed term deposit. While the interest rates are not as high as available on the Virgin Money bank account or from a regular saver, fixed deposits will accept much larger deposits and therefore generate greater returns in cash terms.
Currently, the best one-year fixed rate bond is from BLME, with an expected profit rate of 1.25%. Those saving £30,000 into this bond would expect to receive £375 profit on their investment in 12-months. Savers must be able to commit their funds for the full 12-months as early withdrawals are not permitted. Savers happy to commit to a longer term of five-years will receive an expected profit rate of 1.60% AER paid on anniversary, while the highest return available is from BLME’s 7 Year Bond with an expected profit rate of 1.75% AER.

Savers need to make sure they maximise their tax-free allowances

Savers need to make sure that the interest they earn remains within their Personal Savings Allowance and consider saving any excess funds over this limit into ISAs to use their tax-free allowance. Savers should also check their funds remain protected by the Financial Services Compensation Scheme – for example banking groups that own multiple brands such as Lloyds Banking Group share only one banking licence across all of these brands. Our guide to the Financial Services Compensation Scheme explains more.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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