Which is the best savings account

Maybe one of these?

ISA: https://www.moneysavingexpert.com/savings/best-cash-isa/
not ISA: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

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Thereā€™s also Dozenā€™s 5% bond, which for practical purposes is pretty similar to a savings account with instant withdrawals (but you have to withdraw the amount you put in).

Marcus at 1.5% is pretty solid

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Ditto - Marcus currently has the best rate for an easy access savings account. Otherwise the Tesco current account also offers 3% up to Ā£3k

I used Virgin flexible cash ISA - currently 1.45%

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ICICI have one at 1.55% for the first 12 months then 1.25% thereafter.

I believe the Tesco Bank rate is dropping to 1% in June.

As a reference point it is worth noting that the inflation rate was 1.8% in January

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As a comparison Schwab in the US offer 1.80% on all cash holdings up to any amount.

I have been struggling to find a decent interest rates on my idle cash. My typical bank flexible savings rates are well under 1% and the other alternative has been Marcus 1.45% rate. However, even 1.45% AER is barely enough to move the needle as it does not even keep up with UK inflation, which ultimately makes me worse off in the long run.

The other alternatives that I have come across are 5% AER accounts offered by Dozens and Zeux here in UK. The Dozens proposition is quiet interesting in that you are effectively bidding for a fixed term bond that pays 5% per year. The only major drawback is that they prioritize smaller allocations, which limits the certainty of your allocation and makes it difficult to deposit a meaningful amount. Essentially its high rate on small principal.

Zeux are also quiet interesting. From what i can tell from below post, they also offer 5% AER return product that can be funded and withdrawn from on flexible terms. It seems that there is no specified max amount, which could potentially make this 5% return much more meaningful.

https://medium.com/zeux/how-to-earn-5-aer-in-a-flexible-money-account-93184c20951a

I would be quiet keen to hear anyoneā€™s suggestions on any other higher savings rate opportunities here in UK.

You have to be very careful when suggesting the above product as none of the amount is insured with the FSCS. You are covered by the FCAs funds but only if the investment was mis-sold (which I donā€™t believe this would qualify as they state clearly you arenā€™t insured).

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It depends on when you need the money.

The 1.45% that Marcus offer is good. Itā€™s instant access. If you want better rates you need to put your money away for longer.

Cash savings are not meant for beating inflation, they exist for stability and access. For a better rate you should invest the money for a decade or two.

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For smaller amounts: it can be best to use current accounts, switching offers and regular savers.

With Nationwideā€™s Ā£100 referral deal, for example, you can effectively earn 9% on Ā£2,500 from the FlexDirect account before it drops to 1% after a year.

TSBā€™ll pay you 3% on up to Ā£1,500. HSBCā€™s offering a Ā£175 switching bonus as well as a 5% regular saverā€“a rate also offered by first direct and M&S.

The trouble is you have to jump through a lot of hoops in terms of minimum monthly deposits and number of direct debits, but I used it to great success in building a deposit for a flat.

For bigger amounts: save yourself a headache and use the easy access account with the best rate.

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Thanks Chris!

I found below, which maybe quiet helpful:

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

The main takeaway is that its possible to earn more than 1.5% but only on very limited amount or over short time period.

My ideal set up is to have access to flexible savings account that delivers attractive (3%+) rate. Apart from small savings allocation, I would use it to store my idle spending cash to boost up my savings rate. Quiet willing to try out non FSCS protected products, as recognize that higher return must can only come with higher risk.

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These regular savers remember are 5%aer which I believe comes out to something like 2.2% being the real rate. And thatā€™s assuming you keep up monthly payments, youā€™ll basically make Ā£50

If this is just cash for emergencyā€™s and short term goals then stop worrying about savings rates. 1.5 is about the best youā€™ll get for flexible quick access, and the nature of the money means youā€™ll never make much regardless.

Iā€™d honestly look at your long term savings instead, thatā€™s where youā€™ll make your money.

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Thanks Eden!

I have finally manged to get through the sign up que at Zeux and had a chance to give it a try. They are new kid on the block that offer 5% AER in flexible savings pot. The catch is that the savings pot is NOT FSCS protected up to Ā£85k. Instead thy claim that its is guaranteed by both Wecash and Zeux cash capital.

My take on this, I am able to park my idle cash and SOME of my savings at 5% AER with no lock up period. Obviously more risky than Marcus, but worth trying for smaller amounts.

Thatā€™s not quite right - I do the First Direct one and it returns around Ā£100 in interest a year

You must be referring to thisā€¦

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

Main catch here is the super limited deposit amount (Ā£250/month) and the facts that its 5% teaser rate for 1 year only. I would need to open multiple accounts for this to make sense

Marcus 3.75% instant access (fast pay)

First Direct 7% (Ā£300) 1 year regular saver.

Yorkshire 5.5% (Ā£500) loyalty regular e-saver. 1 year.

Yorkshire Christmas 23 regular e-saver 5%(Ā£300) Finish 1st November Even if you start now.

Nationwide 5.25% (Ā£50) Start to save issue 2
Upto 2 years can take money out with out having to close it down (check if limited amount of withdrawals). I donā€™t think there is.

Saffron 9% (Ā£50) 1 year regular saver. Edit

NatWest 6% (Ā£150) variable rate. Can take out Money with out having to close it down. Not a 1 year one as you can have savings of up to Ā£5,000. Just moved an account there for the Ā£200.

Skipton Easy Access Saver Issue 2 Monthly (3.15%) this one is so I donā€™t miss out members only ones, in the future.

When I open an account with a building society. I generally donā€™t close them down once I have had the deal. Just pay Ā£1 a month in so you count as long term customer.
Most of the money comes from zero interest credit cards spending and balance transfer.
In the case of zero interest spending cards, instead of using cash you use the card and put the equivalent into a savings account.
If possible when it comes to the end of zero interest period, I will move the debt onto a zero interest, no fee balance transfer credit card and continue with savings accounts.
Presently in the process of getting a balance transfer of Ā£9,500 no interest no fee.
Will transfer onto a card with no debt. A card I know will immediately ask if I want the credit paid into my bank account. From there I will put into Marcus and pay it into savings accounts.
I have a Ā£4,000 card to pay off in October and a Ā£9,000 one in April.
Have the money already to pay off the Ā£4,000 one.
It gets complicated after that!
Normally I have an amount equal to all debt in savingsā€¦but l put a little bit into shares! Couldnā€™t help myself!

Saffron 9% (Ā£50) 1 year regular saver. Edit you can make withdrawals from this one.

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