Have you ever thought of getting started with a savings account? Let’s face it: many questions come into your head: “What are the best savings accounts in the UK?” “How do I open a savings account?” “How many savings accounts can I have?” and many more!
I am here to enhance your financial knowledge to understand “what is a savings account” and guide you in deciding the best savings accounts in the UK that meet your needs and interests!
Let’s understand more:
Savings accounts offered by banks and other financial institutions are an excellent solution to deposit money and earn interest on your savings. They provide financial safety for unexpected expenses, such as medical bills, car repairs, job loss, travel, and more!
One of the main interests in finding the best savings accounts in the UK is your financial protection, as they are considered low risk and provide high financial security.
Compare Savings Accounts UK
One of the main hesitations people face is deciding between high-interest savings accounts in the UK compared to regular ones! The decision can vary depending on the factors based on individual financial goals, risk tolerance, and preferences.
Regular savings accounts often offer more flexibility and easier access to funds. They may have fewer restrictions on withdrawals and transfers, making them suitable for people who need frequent access to their money. High-interest savings accounts in the UK sometimes limit the number of withdrawals allowed, and some may require advanced notice for large transactions.
Some high-interest savings accounts may have minimum balance requirements to qualify for the higher interest rate. People sometimes hesitate if they are concerned about maintaining the required balance consistently, as falling below it could result in lower interest earnings or additional fees.
With so many offers and alternatives what is your solution? It is clear,- comparison! Terms and conditions of savings accounts can change, and regular comparisons enable you to adapt to these changes, ensuring that your financial choices remain aligned with your evolving needs and goals.
Let’s have a look at some of the best savings accounts in 2023 with their Pros and Cons:
Marcus by Goldman Sachs
The Marcus by Goldman Sachs offers comprehensive savings products, including a High-Yield Online Savings Account and High-Yield Certificates of Deposit (CDs).
The Marcus High-Yield Online Savings Account offers a competitive 4.40% Annual Percentage Yield (APY) on all balances, subject to limits. The platform does not charge a fee for outgoing wire transfers, distinguishing it from many other banks. While there is no minimum balance requirement, there is a maximum limit of $1 million per account, not to exceed $3 million per account owner.
High-Yield Certificates of Deposit (CDs) range from six months to six years. The minimum deposit for a Marcus CD is $500. The CDs provide a fixed rate of interest based on the chosen term.
Santander
Santander offers a variety of savings accounts, each tailored to different needs and preferences.
1. Easy Access Saver:
Interest Rate: The Easy Access Saver provides a competitive interest rate of 1.70% AER/gross (variable) for 12 months.
Access: This is a savings account with instant and penalty-free access, allowing you to manage your funds conveniently.
Minimum/Maximum Balance: Save from as little as £1 up to £2 million.
Access Channels: Manage your account through Mobile and Online Banking, in-branch, or by telephone.
2. Limited Access Saver:
Interest Rates:
3.00% AER/2.96% gross (variable) in calendar months where you make 2 or fewer withdrawals.
1.20% AER / 1.19% gross (variable) in calendar months where you make 3 or more withdrawals.
Term: The Limited Access Saver has a term of 12 months.
Minimum/Maximum Balance: The minimum opening deposit is £1, and the maximum balance at any time is £2 million.
Access Channels: Manage your account through Mobile and Online Banking, in-branch, or by telephone.
3. Regular Saver:
Interest Rate: The Regular Saver offers an attractive fixed interest rate of 5.00% AER/gross for 12 months.
Monthly Contribution: Save up to £200 a month paid by standing order from your Santander current account.
Access Channels: Manage your account conveniently through Mobile and Online Banking.
HSBC
HSBC savings accounts provide various options for customers, from those looking for instant access with bonus rates to those seeking fixed-rate options for a set period.
HSBC Savings Account Options:
1. Online Bonus Saver:
Interest Rates:
Bonus rate up to £50,000: 4.00% AER / 3.93% gross
Bonus rate over £50,000: 2.30% AER / 2.28% gross
Standard rate: 2.00% AER / 1.98% gross
Access: Instant access is available, allowing you to withdraw funds as needed.
Eligibility: This account is exclusive to existing HSBC customers. It can only be opened online.
Interest Payment: Interest is paid monthly, and the rate is variable.
The HSBC Online Bonus Saver offers higher interest rates when no withdrawals are made in a given month. It covers the needs of existing HSBC customers, providing a convenient online platform.
2. Fixed Rate Savings Account:
Interest Rates:
1-year term: 5.20% AER/gross
2-year term: 4.85% AER/gross
Access: No instant access is provided during the fixed term.
Eligibility: This account is available to current account and savings account customers (excluding Basic Bank Account, Loyalty Cash ISA, or Regular Saver).
Interest Payment: Interest can be paid monthly or yearly, and the rate is fixed.
The HSBC Fixed Rate Savings Account is designed for those who want to save for a specific period with a fixed interest rate. Customers can choose between a 1-year or 2-year term based on their preferences and financial goals.
Barclays
Barclays offers different savings accounts. The accounts provide varying interest rates, access levels, and benefits.
Barclays Savings Account Options:
1. Rainy Day Saver:
Interest Rates:
£1 – £5,000: 5.12% AER/5.00% gross p.a.
£5,000+: 1.16% AER/1.15% gross p.a.
Access: Instant access to withdraw, if needed.
Eligibility: Exclusive for Barclays Blue Rewards members.
Minimum Opening Value: £1
Interest Payment: Monthly; rates are variable.
2. Everyday Saver:
Interest Rates:
£1 – £10,000: 1.66% AER/1.65% gross p.a.
£10,000+: 1.16% AER/1.15% gross p.a.
Access: Instant access to withdraw, if needed.
Minimum Opening Value: £1
Interest Payment: Rates are banded, earning higher rates on the first £10,000 balance.
3. Blue Rewards Saver:
Interest Rates:
No withdrawals: 3.56% AER/3.50% gross p.a.
With one or more withdrawals: 1.16% AER/1.15% gross p.a.
Access: Instant access to your money; higher interest in months with no withdrawals.
Eligibility: Exclusive for Barclays Blue Rewards members.
Minimum Opening Value: £1
Interest Payment: Monthly; rates vary based on withdrawal activity.
4. Instant Cash ISA:
Interest Rates:
£1 – £10,000: 1.66% AER/1.65% tax-free p.a.
£10,000+: 1.21% AER/1.20% tax-free p.a.
Access: Instant access to withdraw, if needed.
Minimum Opening Value: £14 (£0 for transfers-in)
Interest Payment: Rates are banded, earning higher rates on the first £10,000 balance.
5. Barclays Children’s Savings:
Interest Rates:
£1 – £10,000: 2.68% AER/2.65% gross p.a.
£10,000+: 1.16% AER/1.15% gross p.a.
Access: Instant access to withdraw, if needed.
Minimum Opening Value: £1
Interest Payment: Rates are banded, earning higher rates on the first £10,000 balance.
Conclusion
The number of savings accounts you decide to have depends on your needs: there is no legal limit, but make sure to consider practicality and convenience as sometimes managing too many accounts can be challenging!
While from a legal perspective, there are no restrictions, some banks may have limits on the total number of accounts an individual can hold with them. If a particular bank has restrictions on the number of accounts you can open, you can explore opening additional accounts with different banks. It allows you to diversify your accounts and take advantage of various offerings and features.
You can also explore Hyperjar cards.