Lately I was trying to recall the moment when I first opened a bank account in the UK. I did not compare interest rate or thought about which saving accounts I should open. I just got my first job too and I was simply collecting every not spend pound in my bank account.
Over the years I managed to accumulate a slightly larger balance. As we were planning to purchase our first flat I wanted this money to be easily accessible and safe. I’ve started to compare interest rates available with different British banks. That lead me to be more picky with the offered interest rates and to open many accounts with various banks.
Last year we finally managed to sell our London flat. That left us with a great problem to have - where to put all this cash. Our intention was to buy a new larger property soon. That excluded longer term and riskier investments. If you are curious why we decided to rent instead of going into traditional chain route we will write about our reasoning in a future.
I understand that this guide will not stay up to date forever but in a spirit of starting out this blog I’ve decided to write it anyway. Eventually we plan to put a fixed page with up to date list of best savings account.
This list was created in February 2019.
My favourite easy-access accounts to have when you have savings under £4000
TSB Classic Plus Account.
This account gives you 5% AER (4.89% gross variable) interest for the first £1,500 in the account. That means if you don’t touch the £1,500, you will see more than £6 paid into your account every month. The account is a regular account and you don’t need to set up direct debits.
Nationwide FlexDirect Current Account.
This account gives you 5% AER (4.89% gross p.a.) fixed interest on balances of up to £2,500 for the first 12 months, and 1% AER / gross p.a. variable after that. Meaning for the first year, if you keep your £2,500 in the account, you will get more than £10 of monthly interest.
What I like about these two accounts is that they don’t ask you for direct debit set up or they don’t charge a monthly fee. All you need to do is to make sure you meet the minimum £500 or £1,000 monthly input. Also please follow their other terms and conditions such as opt-in to go paperless.
My current strategy for savings between £4,000 and £12,000
If you are a couple you can open 3 TSB and 3 Nationwide accounts mentioned above. Each of you can open a sole account plus a joint account. They both return healthy 5% of interest. This will allow you save up to £12,000. Please remember that these accounts have minimum monthly pay in from another bank. Don’t forget to set up a reminder to do so at the beginning of each month!