Top-paying savings accounts as thousands of savers get just 2.5 percent interest | Personal Finance | Finance

Savers are ‘throwing away’ money by not taking the time to see if they can get a better interest rate with another savings account, a bank has said.

Research from Shawbrook found 42 percent of Britons earn just 2.5 percent when they could get much more.

Interest rates on many accounts have increased over the past year as the base rate set by the Bank of England has continually gone up.

The base rate is currently at 4.5 percent with some analysts predicting it could go up again, meaning rates on savings accounts and ISAs could soon increase.

Many banks also have switching offers, providing a one-off cash payment to those switching providers to join them.

READ MORE: Martin Lewis urges Britons to act ‘early’ to secure mortgage going into retirement

Easy access savings accounts

For those who want flexible access to their funds, there are several easy access accounts that currently pay more than 3.8 percent, as listed on moneyfactscompare.co.uk.

These include:

• Aldermore – Double Access Account – Issue 1 – 3.85 percent
• Chip – Instant Access powered by ClearBank – 3.82 percent
• Investec Bank plc – Online Flexi Saver – 3.82 percent.

Regular savings accounts

The top-paying regular savings account is First Direct’s Regular Saver Account, which pays seven percent fixed for 12 months.

Savers have to deposit between £25 and £300 each month and they must be an existing 1st Account customer.

Other regular savings accounts currently paying above six percent include:

• Lloyds Bank – Club Lloyds Monthly Saver – 6.25 percent
• NatWest – Digital Regular Saver – 6.17 percent
• Royal Bank of Scotland – Digital Regular Saver – 6.17 percent.

‌Easy access ISAs

ISAs are a popular long-term savings option as a person does not have to pay tax on any interest they earn or any income they derive from an ISA.

Several easy access ISAs currently pay more than 3.5 percent. These include:

• Leeds Building Society – Limited Issues Online Access ISA – Issue 61 – 3.75 percent
• Paragon Bank – Triple Access Cash ISA – Issue 13 – 3.65 percent
• Teachers Building Society – Triple Access Cash ISA for Teachers – Issue 1 – 3.65 percent
• Teachers Building Society – Triple Access Cash ISA for Everyone – Issue 1 – 3.6 percent
• Shawbrook Bank – Easy Access Cash ISA – Issue 24 – 3.55 percent.

Fixed rate ISAs

People can get an even better rate for an ISA if they are happy to lock away their money for a number of years.

Savers can currently get more than 4.6 percent with several providers, including:

• UBL UK – Two Year Fixed Rate Cash ISA – 4.67 percent
• OakNorth Bank – Fixed Rate Cash ISA – 4.66 percent
• UBL UK -Three Year Fixed Rate Cash ISA – 4.65 percent
• OakNorthBank – Fixed Rate Cash ISA – 4.63 percent.

Adam Thrower, head of Savings at Shawbrook, said: “There’s a curious paradox happening in the savings world.

“The very people who are motivated enough to save money are the very people who are happy to throw it away by not being proactive enough to move their savings while rates are at an all-time high.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.