Savers urged to lock in ‘guaranteed return on cash’ with 8% interest rates

Ahead of the MPC’s next meeting on February 6, 2025, experts from Moneyfactscompare have compiled a list of the best savings accounts for the week beginning January 20.

Among the high street financial institutions appearing in the ranking include Nationwide Building Society, Royal Bank of Scotland, TSB and NatWest. Notably, some banks are offering rates of up to eight per cent.

In its weekly list, Moneyfactscompare broke down the most competitive savings accounts based on type, including ISAs, fixed rates, easy access and regular products.

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Best regular savings accounts

Here is a list of the best regular savings accounts currently on offer for the week beginning January 20, 2025:

• Principality BS – Eight per cent AER / 7.85 per cent Gross
• The Co-operative Bank – Seven per cent AER/Gross
• Principality BS – Seven per cent AER/Gross
• Nationwide BS – 6.50 per cent AER/Gross
• NatWest – 6.17 per cent AER / Six per cent Gross
• Royal Bank of Scotland – 6.17 per cent AER / Six per cent Gross
• Melton BS – Six per cent AER/Gross
• West Brom BS – Six per cent AER/Gross
• Market Harborough BS – Six per cent AER/Gross
• TSB – Six per cent AER/Gross.
• Principality BS – 5.60 per cent AER/Gross.

Best fixed-rate savings account

Here is a list of the best savings accounts on offer with a one-year fixed-rate interest rate attached for the week beginning January 20, 2025:

• Vida Savings – 4.77 per cent AER/Gross
• SmartSave – 4.75 per cent AER/Gross
• Habib Bank Zurich plc – 4.75 per cent AER/Gross
• Habib Bank Zurich plc – 4.75 per cent AER/Gross
• Close Brothers Savings – 4.75 per cent AER/Gross
• Oxbury Bank – 4.70 per cent AER/Gross
• Kent Reliance – 4.68 per cent AER/Gross
• Charter Savings Bank – 4.66 per cent AER/Gross
• Tandem Bank – 4.65 per cent AER/Gross
• Zopa – 4.65 per cent AER/Gross.

Best cash ISAs

Here is a full list of the best cash ISAs with a one-year fixed interest rate attached currently on offer for the week beginning January 20, 2025:

• Castle Trust Bank – 4.55 per cent AER/Gross
• United Trust Bank – 4.54 per cent AER/Gross
• Shawbrook Bank – 4.53 per cent AER/Gross
• Close Brothers Savings – 4.53 per cent AER/Gross
• Kent Reliance – 4.52 per cent AER/Gross
• Secure Trust Bank – 4.52 per cent AER/Gross
• Aldermore – 4.49 per cent AER/Gross
• Hodge Bank – 4.49 per cent AER/Gross
• Charter Savings Bank – 4.49 per cent AER/Gross
• Cynergy Bank – 4.45 per cent AER/Gross.

Here is a full list of the best cash ISAs with a variable interest rate attached currently on offer for the week beginning January 20, 2025:

• Plum – 5.06 per cent AER / 4.94 per cent Gross
• Moneybox – Five per cent AER/Gross
• Trading 212 – 4.90 per cent AER / 4.78 per cent Gross
• Chip – 4.85 per cent AER / 4.75 per cent Gross
• Tembo – 4.80 per cent AER / 4.70 per cent Gross
• Monument Bank – 4.76 per cent AER / 4.66 per cent Gross
• Mansfield BS – 4.75 per cent AER/Gross
• Tipton & Coseley BS – 4.65 per cent AER/Gross
• West Brom BS – 4.60 per cent AER/Gross
• Vanquis Bank – 4.60 per cent AER/Gross
• Tipton & Coseley BS – 4.60 per cent AER/Gross

Best easy access savings accounts

Here is a full list of the best easy access savings accounts without a bonus attached for the week beginning January 20, 2025:

• Atom Bank – 4.85 per cent AER / 4.75 per cent Gross
• cahoot – 4.75 per cent AER / Gross
• Chetwood Bank – 4.66 per cent AER / 4.56 per cent Gross
• Coventry BS – 4.66 per cent AER / Gross
• West Brom BS – 4.65 per cent AER / Gross
• Buckinghamshire BS – 4.60 per cent AER / Gross
• The Co-operative Bank – 4.59 per cent AER / Gross
• OakNorth Bank – 4.57 per cent AER / 4.48 per cent Gross
• Aldermore – 4.55 per cent AER / Gross
• Monument Bank – 4.55 per cent AER / 4.46 per cent Gross.

Here is a full list of the best easy access accounts with a bonus attached for the week beginning January 20, 2025:

• Chase – Five per cent AER / 4.89 per cent Gross
• Chip – 4.85 per cent AER / 4.74 per cent Gross
• Sidekick Money – 4.75 per cent AER / 4.64 per cent Gross
• Chip – 4.70 per cent AER / 4.60 per cent Gross
• Principality BS – 4.55 per cent AER / Gross
• Cynergy Bank – 4.50 per cent AER / Gross
• Nottingham BS – 4.50 per cent AER / Gross
• Skipton BS – 4.40 per cent AER / Gross
• Marcus by Goldman Sachs® – 4.30 per cent AER / 4.22 per cent Gross
• SAGA – 4.30 per cent AER / 4.22 per cent Gross.

LATEST DEVELOPMENTS:

Rachel Springall, a finance expert at Moneyfactscompare, said: “Savers looking for a guaranteed return on their cash may be pleased to see some healthy competition in the fixed rate market over the past week, as new market-leading deals enter the fray. Aside from one-year fixed bonds, there was a positive mix of competition among challenger banks in the top rate tables, which has seen providers leapfrogging their peers.

“As seen over previous weeks, there continues to be rate increases on longer-term bonds. However, these deals may be too long a commitment for some, so the right term will depend on someone’s individual circumstances. There were more improvements to fixed rate Cash ISA’s over the past week, ideal for savers looking to utilise their ISA allowance. Challenger banks were keen to re-price top rate deals, resulting in new market-leaders.

“Castle Trust Bank, United Trust Bank, Kent Reliance, Hodge Bank, Close Brothers Savings and Secure Trust Bank. There was also a rate rise by Plum on its variable rate Cash ISA, which now leads its sector at 5.06 per cent AER. Challenger banks continue to offer some of the best returns on the market for fixed accounts, so they are well worth comparing against the more familiar brands.

“Those looking to kick start their savings habit could use a regular savings account, particularly if they want to squirrel away some cash for Christmas. Yorkshire Building Society has a new eSaver deal designed just for that, which pays five per cent. Elsewhere the top regular saver continues to be offered from Principality Building Society at 8% fixed for six months.

“Savers who want more flexibility may instead opt for an easy access account, but they must be sure to check any terms and conditions to ensure it’s the right choice for them, as some restrict withdrawals. It is also imperative for savers to ensure they stay within their Personal Savings Allowance (PSA) and take advantage of their ISA allowance to protect their hard-earned cash from tax.”