New savings account paying ‘top rate’ 3.03 percent interest rate
Martin Lewis viewer reveals huge increase in savings income
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For the first time in more than a decade, anyone can get up to 3.03 percent interest on up to £85,000 in savings and access their money whenever they needed it. New app-only bank Kroo is increasing the interest rate to 3.03 percent AER interest from two percent on up to £85,000 in its current account.
This account has been highlighted in the latest MoneySavingExpert newsletter which states people needn’t switch banks to get it.
The newsletter adds: “Top for easy access today are Shawbrook Bank’s 2.92 percent AER (min £1,000), though withdrawals must be £500+ each time, and Cynergy Bank at 2.9 percent AER (min £1).
“Or, for known names, there’s Sainsbury’s Bank paying 2.87 percent AER (min £1,000) and Nationwide at 2.5 percent AER (min £1), though both limit you to three penalty-free withdrawals a year.”
MoneySavingExpert founder Martin Lewis recently went into more details on the best savings options for people right now.
When it comes to easy access savings accounts, Martin Lewis recently told a This Morning viewer that they “should be earning a minimum of 2.9 percent”.
He told ITV viewers last week: “The reason I say put your money in easy access is that it’s flexible, you can take the money out whenever you want and if the rate no longer looks good, you can withdraw it and put it elsewhere.
“All the rates have changed today and there are so many different easy access variants, but the top interest is Yorkshire Building Society at 3.35 percent up to £5,000.”
Savers could get even more interest if they switch their ISAs – pensioner Michael told the ITV money show last night that he is £5,000 better off after following Martin’s tips.
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Michael said: “I’m retired with a good pension and was quite happy with my savings returns, however I watched Martin and the team last week on TV.
“This morning I transferred a cash flexible ISA to a year fixed at 4.10 percent which has increased my savings income by approx £5,000.”
Meanwhile, some regular savings accounts are offering up to seven percent interest right now which is great news for savers but they don’t pay this interest rate on savings up to £85,000.
The best paying regular savings account right now is first direct’s regular saver which is paying seven percent for the first 12 months.
In second place is the Lloyds Bank Club Lloyds Monthly Saver offering 5.25 percent interest on savings for the first 12 months.
It’s possible to get an interest rate of 3.35 percent with the Yorkshire Building Society Online Rainy Day Account Issue 2 but only on savings up to £5,000.
Money.co.uk’s resident savings expert, Lucinda O’Brien, said the best interest rates are usually available on fixed-rate bonds.
She said: “Fixed-rate bonds are still bringing in the highest interest rates, but it comes at the cost of locking your money away for a period of time.”
She continued: “FirstSave currently has the best rates, with its two-year fixed-rate bond at 4.7 percent and its three-year fixed-rate bond just beating it at 4.8 percent.
“As the difference is marginal, this makes the lower term more attractive.
“Elsewhere, Yorkshire Building Society’s easy access account has a competitive 3.35 percent which gives the best of both worlds, as you can earn a decent interest and the money is more accessible.”
Express.co.uk has compiled a list of the best savings accounts for regular savers: Top 10 options paying high interest right now where people can find out more.
Martin Lewis is the founder of Money Saving Expert. The latest Money Tips email can be viewed here.
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