Customers looking to grow their savings with some of the biggest banks are being encouraged to explore a variety of interest-bearing accounts that could help them earn extra cash. Leading financial experts have compiled a list of the best bank accounts, based on interest rates, to help households make their money work harder.
Top High-Interest Savings Accounts from Major Banks
In a bid to help customers make more of their money, Money Saving Expert (MSE), the trusted platform led by financial guru Martin Lewis, has identified some of the best interest rates available from well-known banks. Currently, major players like Virgin Money, Leeds Building Society, and Marcus offer some of the most competitive rates on the market, with interest rates of 4.51%, 4.35%, and 4.3% respectively.
For example, a customer with £5,000 in a Virgin Money savings account could potentially earn £225 in interest over the course of one year. This serves as an excellent opportunity for those who are looking for a straightforward way to increase their savings.
Lesser-Known Banks Offering Stronger Rates
In addition to traditional high street banks, MSE has highlighted some lesser-known but highly attractive options from smaller and online-only banks. Plum, Moneybox, Trading 212, and Monument are offering even higher interest rates, ranging from 4.76% to 5.01%. These accounts are especially appealing for customers willing to consider non-traditional banking options.
Among these, Plum stands out with an impressive 5.01% interest rate. However, this rate includes a 12-month variable bonus of 1.22%, and customers can expect a reduced rate of 3.79% if they transfer funds into the account. Additionally, the interest rate drops to just 2.5% if more than three withdrawals are made in a year. Despite these limitations, Plum’s competitive rate makes it a strong contender for savers looking for higher returns.
Another option, Trading 212, offers an interest rate of 4.9%, which is slightly lower than Plum’s but provides more flexibility. Trading 212 allows unlimited withdrawals, with no penalties for transfers. Additionally, it operates as a flexible ISA, which means customers can replace any withdrawn cash without affecting their annual ISA allowance.
The ISA Advantage: Higher Rates and Tax Benefits
Interestingly, MSE pointed out that top easy-access cash ISAs are currently offering better rates than traditional easy-access savings accounts. This makes them a viable option even for those who may not typically need the tax advantages of an ISA. Trading 212 and Plum are both examples of ISA accounts that allow customers to take advantage of higher interest rates while retaining the flexibility to withdraw funds when needed.
For those who prefer well-established banks, Virgin Money offers a strong 4.51% interest rate. However, it’s important to note that Virgin Money limits penalty-free withdrawals to just three per year. Despite the lower interest rate compared to some smaller competitors, Virgin Money remains a reputable choice for those seeking reliability.
Why Shop Around for the Best Rates?
Money experts emphasize the importance of shopping around for the best rates to maximize savings. With interest rates fluctuating and many banks offering attractive terms, savers have the potential to grow their funds faster by selecting accounts that offer higher returns. Whether opting for a high-street bank or a lesser-known online bank, the right account can significantly boost your financial growth in the coming year.
By comparing rates and terms, customers can ensure they are making the most of their savings and taking full advantage of the competitive market. With financial institutions continually improving their offerings, now is an ideal time to reassess your savings strategy and consider accounts that provide the best possible returns.
In conclusion, whether you are a traditional bank customer or open to exploring smaller, online-only banks, there are numerous opportunities to earn more interest on your savings. From established names like Virgin Money to up-and-coming players like Plum and Trading 212, the key is to find the right account that matches your financial goals and preferences.
Manish Kumar is a seasoned journalist and the Senior Editor at NewIndiaNetwork.com, with over a decade of experience in uncovering stories that matter. A leader both in the newsroom and beyond, he thrives on guiding his team to deliver impactful, thought-provoking content. When he’s not shaping headlines, you can find him sharing his insights on Twitter @humanish95 or connecting via email at manishdhanda60@gmail.com.
