The top 5 UK savings accounts for 2013
Trying to save money is a constant hassle because there are so many other things you should be spending the money on. The truth is that unless there is a good rate of interest, then what is the point of trying to save at all? So let’s say that you decide to make a few savings. So you give up the cigarettes and the alcohol, and you start packing your own lunch to go to work every day. So now what do you do with the money that you have saved? You can put it into one of the savings accounts listed below.
1 – First Direct
They will pay you 8% AER on their Regular Saver account. This is fixed for twelve months, however they insist that you have a current account if you wish to apply. However, if you do switch then you will receive a cool £125. The savings account means that you can save £300 per month for a year, and they will give you a gross interest of £156 for the year.
2 – HSBC
They offer a savings rate of 6% AER on their regular Saver account. However, you will need to hold a HSBC Premier, HSBC Advance (Graduate), HSBC Passport account or HSBC Advance. Your normal HSBC account will let you earn 4%. If you fancy the savings account then you can get your rate fixed for twelve months. You must make deposits of £25 to £250 per month, and you are not allowed to make any withdrawals.
3 – West Brom’s WeBSave
This is an alternative to locking your money away. You can put it into your West Brom’s WeBSave bank. They pay 2.3% AER which is only slightly less than a short-term fixed-rate account. The savings account is for a lump sum, which means that you need to add a minimum deposit of £1,000. It also means that you can only make one deposit per year.
4 – Norwich & Peterborough
They will pay you a decent 5% AER on their E-Family Regular Saver, and Family Regular Saver accounts. This account however is only available to you if you have dependent children. You will also get a 3% bonus if you make a payment every month for a full year. You can pay as little as £1 and as much as £250. If you do that for a full year and you only make one withdrawal, then they will give you your 3% bonus.
5 – Coventry building society
This is a tax free savings account because it is an ISA. They offer you 3.1% AER on your balance if it is between £1 and whatever the current ISA limit is. At the time of writing this article, the ISA limit is £5,640. They will also guarantee your rate well into 2013.
What is a regular savings account?
It is where you opt to put money into your account every month. They will help you to save money by adding a little bit of money. The aim of the game is to put in a little bit each month and keep it in for as long as possible. The longer you leave it in then they longer you get to enjoy the interest on it. Your payments are dripped into the account, which means that you cannot receive an annual AER.
What is Tax-free saving?
In Britain you can have this by saving in an ISA. Your money is protected from having to pay tax on the interest. You are protected up to a certain amount.
What is lump sum saving?
This is where you put a large sum into your account and then leave it in there for a certain amount of time. You then get to draw it out after a year. If you draw it out before then you get no/little interest. If you wait for a year then you get an interest payment.