Which is the best savings account

I was wondering which saving account is the best with instant withdrawals and what people are using nowadays days. I am using Lloyd’s which only has a interest of 0.35% on its cash isa.

marcus by goldman sachs Is soo far the best I have found with interest of 1.45%

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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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There’s also Dozen’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 £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 From what i can tell from below post, they also offer 5% AER return product that can be funded and withdrawn from on flexible terms.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 anyone’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 don’t believe this would qualify as they state clearly you aren’t insured).

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It depends on when you need the money.

The 1.45% that Marcus offer is good. It’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 Nationwide’s £100 referral deal, for example, you can effectively earn 9% on £2,500 from the FlexDirect account before it drops to 1% after a year.

TSB’ll pay you 3% on up to £1,500. HSBC’s offering a £175 switching bonus as well as a 5% regular saver–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 that’s assuming you keep up monthly payments, you’ll basically make £50

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

I’d honestly look at your long term savings instead, that’s where you’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 £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.

That’s not quite right - I do the First Direct one and it returns around £100 in interest a year

You must be referring to this…

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

Main catch here is the super limited deposit amount (£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