Everything seems to be changing in the world of banking. Overdraft rates are sky rocketing. Some banks are slashing their interest rates and bonus schemes. Where do you turn to for your current account? What about if you’ve got savings which are going to be earning less than the pittance they were? What’s the best instant access savings account on the market at the moment?
Instant Access For Me
I’m currently looking at moving about £2400 of our savings into a different account, one which will actually earn us some money. I add to it occasionally but being self employed it’s usually a lump sum of a couple of hundred pounds every now and then. As I am self employed, instant access is important. If clients were to walk away or I was to be hit with a large bill, I’d need to dip into those savings.
What About Fixed?
Fixed rates might be more up your street if you’ve got a lump sum, perhaps from a redundancy payout or an inheritance. If you can afford to lock away your money for one or two years you can get rates of 1.8%. The best five year fixed is 2.1%. These aren’t for us at the moment though. It might be for you though!
Have You Heard Of Notice Accounts?
A notice account could be a good option if you’re looking for something between instant access and fixed rates. These notice accounts offer better rates than instant access, with the best at the moment up at 1.65%. You have to give 95 days notice in order to access your money. So that’s just over three months to get your hands on your cash. Not ideal if you need it there and then but if in the position to essentially lock away but call on your cash should you need it, this is great!
What’s My Best Option?
As I said we need to look for the best instant access savings account for our money. At the moment that is 1.35% from Marcus by Goldman Sachs. You can open this with just £1 and you can open online. If you’re over 50 you can get the same rate at Saga. If you’re looking for a name you know, the Post Office has an account available with 1.3% interest for 12 months. I think I’m going to go for the Marcus account.
What’s A Sharia Account?
You might have heard or read about sharia accounts but have no idea what they are. Neither did I! Under Islamic law they cannot use interest rates and instead use a ‘expected profit rate’. According to Martin Lewis he hasn’t heard of one never paying out the advertised rate, so with the top one of these offering what is essentially 1.4%, it’s potentially one of the best instant access savings accounts. If you’re willing to have that non guarantee, that is.
It’s worth noting that you need to double check your money is safe. All the accounts I’ve found comply with the £85,000 per person protection in UK-regulated financial institutions. Now is the time to get your savings into a better interest rate. There’s little to no point in having cash sat in an account doing though. Find the best option for you, the money in the pot you have and the life situation are find yourself in. Make your money work for you!
