Money Saving Expert has named the five highest-paying 'normal' savings accounts currently on the market, with rates reaching up to 5%. The team warns that many savers are missing out on better returns, leaving money in accounts paying little or no interest, which, with inflation, means a loss of spending power.
These accounts are not ISAs, making them useful as an add-on for those who have already used their annual ISA allowance. Each account comes with conditions that savers should review before opening.
Top five savings accounts listed
Spring (part of Paragon Bank) Accelerated Saver pays 5%, but the offer ends on Wednesday, and the rate applies only to a maximum balance of £5,000. The account is opened online, interest can be paid monthly or annually, and withdrawals are made to a linked current account, potentially taking up to two hours.
Cahoot (part of Santander) Sunny Day Saver also offers 5%, with a variable rate lasting one year after opening. The maximum balance is £3,000, interest is paid monthly or annually, and withdrawals are allowed at any time.
Rates and conditions vary
Zopa Bank (newbies only) offers a 3.5% variable rate plus a one-year 1.06% bonus, giving a combined 4.56%. The rate drops to 2% after three withdrawals per year, and the maximum interest-earning balance is £50,000, with no bonus on balances up to £250,000. Customers must open its Smart Saver first, then the limited-access pot.
Cynergy Bank's Easy Access Account provides a 2.55% variable rate and a one-year 2% bonus, totalling 4.55%. Balances can range from £1 to £1 million, interest is paid annually, and money can be accessed at any time.
Oxbury Bank (newbies only) offers 4.3%, described by Money Saving Expert as the best “fuss-free” option. It requires a minimum £1,000 balance and a maximum of £120,000. The account can be opened online or via the app, which is needed to manage it, and interest is paid monthly.
