The best savings rates – April 2013

If you're looking for where to put your cash it's important to compare the best rates 

available. Although rates generally are low at present even obtaining  the slightest improvement in the rate of interest you receive is well worth the effort. To start off with ensure  you are making full use of your annual cash ISA allowance (currently £5,640).

Savings rates are falling

Unfortunately the Government's Funding for Lending Scheme continues to have a negative effect on the best savings account rates. Across the board the best rates have fallen, which is even reflected in the Investec's High 5 account (which matches the best rates on the market) cutting its interest rate.

But as the tax year draws to an end the usual influx of competitive deals just hasn't materialised. In fact those who've left it late have lost out.

Best Cash ISA rates

Cash ISA variable rate

Coventry Building Society Poppy ISA

• 2.60% (AER) - includes a 12 month bonus of 0.6% but rate guaranteed to be 2.60% until 5th April 2014
• Coventry Building Society donate amount equal to 0.1% of all Poppy ISA balances to the Poppy appeal
• min. deposit £1
• transfers in not accepted

Cash ISA fixed rate

Halifax ISA Saver Fixed - 5 Years

• 3.10% (AER) Fixed
• Min. deposit £500
• No withdrawals allowed and 365 days loss of interest if closed early.
• transfers in accepted

Instant Access

Coventry Building Society - Online saver 4

• 2.00%  (AER) - incl 0.4% bonus for first 12 months
• Minimum deposit £1
• Max 4 penalty free withdrawals a year. Further withdrawals subject to loss of interest

If you are comfortable with locking your cash in for a period of time, then these are the best rates at the moment:

Fixed Rate Bond - 1 Year Term

Aldermore Fixed Rate Savings Account - 1 Year

• 2.25% (AER) but reduced to 0.5% for balances under £1,000
• Min. deposit £1,000
• No withdrawals during term

Fixed Rate Bond - 3 Year Term

Union Bank Fixed Term Deposit Account - 3 Year

• 2.50% (AER)
• Min investment £2,000
• No withdrawals during term

Fixed Rate Bond - 5 Year Term

First Save 5 Year Fixed Rate Bond 2nd Issue

• 2.90% (AER)
• Min. investment £1,000
• No withdrawals during term

Best account for those who don't want to shop around

The Investec High 5 Issue 2 takes the average of the top 5 best buy savings rates. Rates reviewed weekly.

• current rate 2.10% AER
• Minimum investment £25,000
• 180 days notice to withdraw funds

(image by Stefano Valle / FreeDigitalPhotos.net)