If you have £5,000 or more in savings with big banks such as Nationwide, experts suggest it’s time to shop around for better interest rates. Many popular easy-access savings accounts currently offered by major banks like Nationwide, Lloyds, and NatWest no longer provide the most competitive returns.
Financial advisors recommend considering online-only banks, which are offering some of the highest rates available today. The top rate on the market is currently 4.75%, provided by Zopa, although Money Saving Expert (MSE) notes that accessing this rate requires some extra steps.
To qualify for Zopa’s 4.75% rate, savers must open a free Biscuit current account. There’s no hard credit check and no obligation to switch your main bank account. However, you need to deposit £500 or more into this current account each month to maintain the bonus rate. For those not wanting to actively use the account, there’s a workaround—moving money into the current account and then immediately transferring it to the savings account to secure the bonus.
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Other strong contenders include Ulster Bank and Chase, both offering 4.5% interest rates with simpler requirements. Ulster Bank’s offer includes a one-year 2.75% fixed bonus, essentially guaranteeing a minimum rate for the year. After that, rates may drop, so it’s wise to be ready to switch accounts again when it’s due to revert.
Chase also offers 4.5% interest with a one-year 2.25% bonus for new customers. Unlike Zopa, Chase does not require a minimum monthly pay-in, making it a more straightforward option for many savers. Chase also uses an app-only model but skips the hard credit check, easing access further.
For those with £5,000 in savings, switching to one of these higher-yield accounts could generate up to £237.50 in interest over 12 months at the top rate. Considering the ease of switching accounts nowadays, exploring these offers can be a smart move to maximize your savings returns.