Where to put your savings?
Last week we were talking about how inflation can eat up your savings unless it is placed in a savings account with a higher interest rate than 2 per cent. But what are the best savings products available on the market? We know that the stock market is the best place to put your money for the long-term - ideally with more than a 10-year perspective. However, for short-term savings goals, such as a house or a holiday, the stock market is too risky, and we should rather look at saving in bonds or high-interest savings accounts. Note that your emergency fund should be placed in an easy-access savings account.
In November, M&S Bank cut its 5 per cent savings account, right after HSBC and First Direct. Are any banks still offering interest rates that make it worthwhile? Look no further, we've put together a list of the highest interest-paying saving products for you!
1. First Direct regular saver: 2.75% AER fixed for one year.
-Deposit between £25 and £300 each month.
2. M&S Bank: 2.75% AER fixed for a year.
- Save up to £250 each month.
3. HSBC regular saver: 2.75% AER fixed for a year.
- Deposit between £25 and £250 each month.
4. Principality Building Society regular saver: fixed 2.7% AER for a year.
- Maximum £125 each month.
- Can't withdraw unless you close the account.
5. Coventry Building Society regular saver: 2.5% AER variable.
- Save up to £500 each month.
Which savings account do you use?