Today’s low interest rates might be good news for mortgage-holders but they’re bad news for those with savings on deposit (as low as 0.01% in some cases), but there are signs that they will rise and some providers are already offering new products to win back savers.
But, there are little-known accounts out there which are exclusive to existing customers of some banks.
Here are two intriguing high interest savings accounts that recently came to our attention:
M&S Monthly Saver- shopping for a better rate?
M&S might be better known for their underwear than financial products but here’s a savings account that makes others look like pants when it comes to interest rates.
With a whopping 5% AER (Annual Equivalent Rate) gross, you could accumulate £81 in just one year if you stash away the maximum allowed each month (£250) with the M&S Monthly Saver account.
Best of all, if you’re unable to make the limit in any given month, you can make it up the difference the following month if you’ve more to spare.
As with all these high interest accounts, there’s a catch, but this one isn’t particularly onerous.
To secure this top rate of interest, you need to use the M&S Current Account Switching Service (payments must be made by standing order from the M&S current account to the Monthly Saver) and have at least two active direct debits up-and-running.
Note also that partial withdrawals are not allowed.
After the 12 month period is up, your savings are transferred to M&S Everyday Savings Account, where the AER is more in line with standard savings account elsewhere.
However, you do have the option to open another monthly saver and do it all over again, providing of course you still do your day-to-day banking using the M&S.
Interested? See here for more details.
Nationwide Flexclusive Regular Saver – flexible and high earning
Nationwide might be one of the big boys on the high street, but they’re not one to follow the herd when it comes to measly AERs.
The Flexclusive Regular Saver account offers a market-breaking 5% AER gross with instant access. The rest of the T&Cs are pretty similar to the M&S offering. You can save up to £250 per month for 12 months with interest calculated daily and paid annually.
But, and it could be a big ‘but’ for those needing cash as short notice, the account allows instant access to your savings with withdrawals of up to £500 per day. You can also opt to have your monthly interest transferred into another Nationwide account.
Just be aware, that, unlike the M&S Monthly Saver, if you miss the full payment for the month, you can’t make it up in following months.
Of course, you’ll also need to hold, or switch to a Nationwide current account to get started.
Once the 12-month period is over, the money in the Flexclusive Regular Saver will be transferred to a Flexclusive Saver Account.
By then, there’s a good chance there’ll be a equally appealing offering on the market that’s worthy of your hard earned savings that you can find out about right here.
Given current low interest rates, both of these are clear cut frontrunners in the savings market.
All you need to do is switch to either bank for your day-to-day banking services and these days, given government legislation, that’s much easier than it has been in past.