We round-up the best savings accounts and Isa accounts on offer in 2020.
National Savings & Investments (NS&I) rates could fall again after it was announced in the Budget in March that it is looking to attract much less money from savers.
Savers have been dealt three crushing blows, with interest rates falling to just above zero. The bad news began in the early morning of 11 March, when the Bank of England revealed in a surprise announcement that it had cut its base rate by two-thirds to 0.25% from 0.75%.
Savers are set to be disappointed by the cash Isa rates on offer as we approach the end of the tax year. Experts have warned that there is unlikely to be a proper cash Isa season this year, with some big banks instead opting to cut their rates.
Easy access accounts are getting increasingly complicated. Savers are required to trawl through a host of terms and conditions to see how and when they can get their hands on their money, or if their rate will plummet after 12 months.
Investec Bank research shows that of the top 20 easy access accounts ranked by the rate paid, only six come without withdrawal restrictions, penalties if you make more than the allocated number of withdrawals, or a short-term bonus where the rate plummets after 12 months.
The UK’s biggest banks paid as little as 20p in interest on every £100 saved by cash Isa holders last year. Our analysis of the interest paid by the large banks and building societies reveals just how tight-fisted they are with loyal savers.
Savers who have accounts with Virgin Money, Clydesdale Bank, Yorkshire Bank and their offshoot B have seen a change in the level of compensation they could receive in the unlikely event of the group running into trouble.
At its latest meeting at the start of November, the Bank of England Monetary Policy Committee left the base rate unchanged at 0.75%. But that has not stopped providers chipping away at the rates they pay savers.
National Saving and Investment (NS&I) has withdrawn its popular Guaranteed Growth and Guaranteed Income Bonds from general sale.
Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate.
Banks and building societies are busy cutting the rates that they pay savers. The falls impact easy-access accounts offered to new savers, as well as those that were on sale in the past. Thousands of savers are currently earning a pittance on cash languishing in more than 1,400 easy-access accounts, which are closed to new savers.