The best savings rates – May 2013

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

The first thing to do is make full use of your tax free allowance by investing in an ISA, for the 2013/14 tax year you can invest up to £5,760 in a cash ISA.

Best Cash ISA rates

Cash ISA variable rate

Cheshire BS ISA Saver (Issue 3)

• - 2.30% AER variable rate including 1.8% bonus until Oct 2014
• - min. deposit £1,000
• - annual interest only
• - transfers accepted
• - Access by post only, applications online/phone

Cash ISA fixed rate

Virgin Money Fixed Rate Cash E-ISA 5 years

• - 3.00%  AER fixed rate
• - min deposit £1
• - term to 24/5/2018
• - transfers accepted
• - online only

Best savings account rates

Once you have used up your annual ISA allowance then here are the best cash rates.

Instant Access

Santander 123 current account

• - 3.00% AER  on deposits between £3,000 and £20,000
• - operates as a current account
• - must pay in a minimum of £500 per month
• - 3.oo% AER  on deposits between £3,000 and £20,000
• - £2 per month fee
• - 1% - 3% cashback on bills such as council tax, phone and energy bills
• - interest paid monthly

Manchester BS  Platinum Easy Access account

• - 1.81% AER
• - min deposit £1,000
• - max deposit £50,000
• - can only make six withdrawals in each calendar year
• - access by post or in branch
• - annual interest

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

Fixed Rate Bond - 1 Year

Shawbrook Bank 1 Year Fixed Rate Bond

• - 2.15% AER
• - min deposit £5,000
• - apply online or by post but can only be operated by post
• - interest is paid on maturity

Fixed Rate Bond - 3 Year Term

Vanquis Bank High Yield 3 Year Fixed Rate Bond

• - 2.51% AER
• - min deposit £1,000
• - no withdrawals during term
• - annual or monthly interest
• - application online, operated by phone or online

Fixed Rate Bond - 5 Year Term

Virgin Money Fixed Rate E-Bond Issue 43

• - 3.00% AER
• - min deposit £1
• - application online
• - annual or monthly interest
• - no withdrawals during fixed rate period

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

The Investec High Issue 2

• - takes the average of the top 5 best buy savings rates, rates reviewed weekly.
• - currently paying 2.10% AER
• - six months withdrawal notice
• - min deposit £25,000
• - interest paid monthly or annually
• - online operation