The best savings rates – March 2013

piggy bank If you are looking to put your cash on deposit it is important that you seek out 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.

The rare bit of good news is that at least the best cash ISA rate has not fallen with Coventry Building Society leading the way. But as the tax year draws to an end the usual influx of competitive deals just isn't happening and looks unlikely to.

Best Cash ISA rates

Cash ISA variable rate

Coventry Building Society 60 Day Notice ISA (3)

  • 2.80% (AER) - incl 0.60% bonus for first 12 months
  • Min. deposit £1
  • 60 days notice or loss of interest
  • No transfers in 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
Best savings account rates
Once you have used up your annual ISA allowance then here are the best cash rates.

Instant Access

Derbyshire Building Society - NetSaver - Issue 10

  • 2.00%  (AER) - incl 1.5% bonus for first 12 months
  • Minimum deposit £1,000

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

The Co-op 1 Year Fixed Term Deposit

  • 2.31% (AER)
  • Min. deposit £1,000
  • No withdrawals during term

Fixed Rate Bond - 3 Year Term

The Co-op 3 Year Fixed Term Deposit

  • 3.00% (AER)
  • Min investment £1,000
  • No withdrawals during term

Fixed Rate Bond - 5 Year Term

First Save 5 Year Fixed Rate Bond 1st Issue

  • 3.05% (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 2.11% AER
  • Minimum investment £25,000
  • 180 days notice to withdraw funds

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