The best savings accounts for your cash before an interest rate cut in November

With inflation still running high, it remains important that savers are seeking the best returns possible on their cash - especially ahead of a potential cut to interest rates before the end of the year.

Research this week from Marcus by Goldman Sachs claims 46 per cent of UK savers are holding money in current accounts - often paying no interest at all - while 41 per cent have not moved their savings in the past year and have no plans to do so in the future.

It likely means they are missing out on significant returns on their cash, but more importantly, means the real value of their money will be going down as inflation has stayed high all year.

Job no.1 for savers should be to maintain the interest earned on cash above the rate of inflation - which means a minimum of 4 per cent, and it’s possible to earn well above that.

Here are the top rate savings accounts you should be checking out in November.

Best cash ISAs

A cash ISA is just a normal savings account but you don’t pay tax on interest earnings inside it.

• The Independent has partnered with Trading 212 for an exclusive rate for readers of 4.53 per cent for new clients. That includes a 12-month bonus and it is a flexible ISA.
• Outside of this exclusive rate, Moneybox has the current top rate around ISAs, offering 4.52 per cent including a bonus which you get if you keep it for 12 consecutive months. It is for new customers only and only three withdrawals are permitted each year, otherwise the rate goes down. You need £500 to open the ISA.
• Moneyfarm offers 4.48 per cent, again with a boosted rate. A £500 minimum balance is required to get the bonus rate and three withdrawals are allowed.
• Similarly, Plum have 4.45 per cent including a bonus rate if kept for 12 consecutive months and other conditions are met, while Chip offer 4.42 per cent.

Always check to see which conditions meet your needs, especially in terms of expected withdrawal numbers and whether you would be likely to move your money again if rates or bonuses change.

Easy access accounts

Outside of ISAs there are some similar rates available. While Zopa’s market-beating 4.75 per cent offer has now ended (unless you’ve already opened it of course), there are still several offering well above 4 per cent.

• Chase offer 4.5 per cent for new customers including a 12-month bonus, which is accessible once you open a current account with them. You do not specifically need to use the current account once it is open.
• Ulster Bank, which is owned by NatWest, similarly has a 4.5 per cent rate available including the bonus, but you need a minimum of £5,000 to open it and the account lasts for a year.
• After that, Cahoot (owned by Santander) offers 4.4 per cent for an account lasting a year - you always need to mark your diaries when opening this type, so you move your money afterwards. The full rate is variable.
• And finally, Chip offer 4.37 per cent for new customers only including the bonus rate. You need to open it via the app and the bonus lasts 12 months. You can have three withdrawals across 12 months without a penalty - if you make more then the rate will drop significantly.

A range of others including Tesco Bank, Shawbrook and the Post Office have rates above 4 per cent but lower than this quartet.

(Getty/iStock)

Fixed term savers

These accounts offer a trade-off: you guarantee a rate for a set period of time, but usually you cannot access your money until the end of that period.

At present, the top one-year fixes are paying under 4.5 per cent, with similar numbers for two-year deals:

• LHV Bank pays 4.46 per cent with interest on maturity on a one-year deal. Minimum £1,000 and you need a current account first.
• Habib Bank pays 4.44 per cent, interest on maturity on a one-year deal. Minimum £5,000.
• Al Rayan via Prosper pay 4.56 per cent with interest at maturity and a minimum £1,000, but this is a savings marketplace - your account is with Prosper (Griffin Bank), then they have a deal with Al Rayan for one rate, with their own bonus on top.
• FirstSave offer 4.45 per cent for a two-year fix, minimum £1,000.
• Afin offer up to 4.55 per cent for five years - ensure you know you won’t need the money beforehand.

Notice accounts

For these, you usually get a higher rate for longer notice time before you can access your money (like 60, 90 or 120 days) but at present not many offer better than those top easy access accounts. However, those which are offering above 4.5 per cent right now are:

• OakNorth Bank offer a tracker 0.54 per cent above the Bank of England base rate - which means right now it’s 4.54 per cent. The notice period is 95 days.
• Oxbury Bank offer exactly the same but it’s a 120 day notice account and needs a minimum of £10,000, or 180 days for a minimum of £1,000 and 4.55 per cent rate.

All rates and products are correct at time of publishing but always check terms and ensure all accounts suit your needs.

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