
Savings Guide: More options than ever for savers to beat inflation - and good news about top easy access ISA
For this week's Savings Guide, Anna Bowes, expert from The Private Office, reviews the best account options on the market in June.
Easy access
There has not been a lot of change to the easy access table, apart from the addition of a new financial app provider, Snoop.
Like other fintech providers such as Chip, Moneybox, Tembo, Plum, and Sidekick, Snoop offers savings and investment services.
These companies are not banks themselves, but they partner with fully authorised and regulated banks.
This means that funds placed in their savings accounts are protected by the Financial Services Compensation Scheme (FSCS).
However, it's important to remember that the FSCS protection limit of £85,000 applies per person, per bank. So if you already hold money with one of these underlying partner banks - either directly or through another financial app - you'll need to consider your total balance across all accounts.
If you exceed the £85,000 limit, any amount over that may not be protected.
Of the top five accounts listed in the table, Chase and Atom are also app-only, but unlike the fintechs above, these are authorised and regulated banks in their own right.
For those who would prefer not to use an app-only provider, Cahoot's Simple Saver offers a straightforward, unrestricted, easy access account with an interest rate of 4.55% AER.
However, note that after 12 months, any remaining funds in this account will be transferred to a Cahoot Savings Account, which currently pays only 1.20% AER.
Fixed-term bonds
The Bank of England's decision to keep the base rate on hold at 4.25% last week has given savers another reprieve - and the good news is that fixed-term bond rates have not only remained steady, but we've actually seen some improvements.
Of the top five one-year fixed-term bonds, four are new and improved since the base rate decision last Thursday - and the top rate on offer has jumped up to 4.55% AER, from 4.50% a week before.
It's not quite as impressive in the two-year table, but the top rate has edged up from 4.42% to 4.45% AER.
However, we have also seen one provider cutting the rate it is offering very slightly, leaving the new rate high enough to keep it in the best buy tables.
The longer-term tables have seen very little activity, which makes sense - although there was no base rate cut this time around, the trajectory is very much downwards, so providers don't want to be paying out more than they need to over the longer term.
While the new, better rates are only marginally higher, it does mean that savers have more options than ever to choose from that still beat inflation - especially if we see inflation fall in the next few months and years.
Fixed-term cash ISAs
It's a similar picture for fixed-term ISAs - in fact, in some cases, it's even better.
We've seen some rate hikes among the top longer-term accounts. And, just like with the one-year bonds, there have been multiple improvements. All of the top five fixed-term cash ISAs are now paying more than they were a week ago.
The average has improved from 4.26% to 4.30% following a little battle between Cynergy, Castle Trust and Hodge.
Cynergy is currently the winner, paying 4.35% tax free/AER.
If you are looking to fix for two years, the top rates are still slightly lower, as the markets are expecting rates to fall in the next few months and years, but there have been a few increases in the meantime.
The top rate available over this term is now 4.25% with both Cynergy Bank and United Trust Bank, with Vanquis falling slightly behind them, paying 4.22%.
Over in the three-year table, the top rates are all exactly the same as in the two-year table, so if you want to hedge against further cuts by locking in for a bit longer, you're not missing out by doing so.
Finally, in the five-year table, the average among the top five is 4.22%, which is the same as both the three-year and two-year terms, as the rates are very similar.
However, the top five-year rate is very slightly less at 4.23% with the Nottingham Building Society.
What term you choose all depends on what you think will happen to interest rates over the next few years.
In the meantime, once again, there are plenty of inflation-beating accounts to choose from for those who have not yet used this year's ISA allowance or who are looking to switch from a poorer-paying ISA account.
Easy access cash ISAs
Competition has been more muted among the easy access cash ISA providers and we have seen a few rates being cut over the last few days.
That said, the top easy access ISA with Plum increased the rate for new customers from 4.85% to 4.88% - an unexpected move as it was already paying quite a bit more than the rest of the field.
For those who do not want to choose a financial-app-only fintech provider, the top rate is now a little less, as Vida Savings has reduced rates.
The new best Easy Access ISA is with Kent Reliance, paying 4.46%.
This is a refreshingly straightforward account, as there are no restrictions on the number of withdrawals you can make, and there is no short-term bonus to watch out for.
It can be opened online or even in a branch if you live close to one.
As ever, check all the terms and conditions to make sure you choose the best account to meet your needs.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Independent
24 minutes ago
- The Independent
Preferred candidate for chairman of Climate Change Committee announced
Energy Secretary Ed Miliband has announced Nigel Topping as the Government's preferred candidate for chairman of the Climate Change Committee (CCC). The chairman plays a key role in the committee's work of advising ministers on climate targets and reporting to Parliament on progress made in reducing greenhouse gas emissions. The UK Government, Scottish Government, Welsh Government and Northern Ireland Executive all agreed on Mr Topping as the preferred candidate for the CCC role, Mr Miliband said on Friday. Before any formal appointment, Mr Topping will be questioned by MPs on the energy and environmental audit select committees on July 16. Mr Topping is currently a member of the Climate Change Committee and previously held the position of the UK's high-level climate action champion. Following an 18-year private sector career in emerging markets and manufacturing, he worked as executive director of the Carbon Disclosure Project and chief executive of the We Mean Business Coalition. If approved, Mr Topping will replace interim chairman Piers Forster, a leading climate scientist who succeeded former environment secretary Lord Deben in the role in 2023. Mr Miliband said: 'I am delighted to announce the preferred candidate for chair of the Climate Change Committee – Nigel Topping will bring his extensive experience to this role, having already served on the Climate Change Committee for more than two years and as a UN Climate Change High Level Champion for Cop26. 'The CCC plays a vital role advising the UK and devolved governments on our climate targets and this announcement comes at a crucial time, as we deliver our mission to make Britain a clean energy superpower with good jobs, energy security and growth for the British people. 'Net zero is the economic opportunity of the 21st century and Nigel's strong business background will help us drive growth on the transition to net zero, unlocking opportunities for Britain. 'I look forward to progressing the appointment in the coming weeks along with ministers in the devolved governments.'


BBC News
28 minutes ago
- BBC News
Billericay pub's late closure plan sparks resident's concerns
Residents have said they fear anti-social behaviour will increase if a pub near their homes is allowed to open until 02: Crown in Billericay, Essex, currently closes at 01:30 but its owner, Greene King, has applied to keep it open for an extra resident claimed if the venue was granted an extended licence it would be "a beacon to troublemakers and drug dealers".Greene King said it was supporting its self-employed tenant and claimed the operator had successfully run the pub "for years as the proud heart of the local community". Basildon Council has received 56 objections and 12 supporting representations after the pub applied for its licence to be present, The Crown can offer alcoholic drinks, live and recorded music and late night refreshment until 01: proposed extension would see the conditions continue until 02:00, if the council approved the some residents have complained to the council about possible increased noise and anti-social said: "I am terrified at the prospect of this happening until 3am and beyond."Granting a licence until these ungodly hours will serve as a beacon to troublemakers and drug dealers. Crime will inevitably follow. I beseech you to reject this application."Another complained the prospect of more people being drunk and disorderly outside the pub was unacceptable."If allowed this proposal would give local residents cause to fear for the safety of their homes and property," they claimed.A spokesman for Greene King said: "The tenant is the longstanding operator of The Crown, who has successfully ran the pub for years as the proud heart of the local community in Billericay."The application will be discussed at a later date. This article was written by a trusted journalist and then edited for length and style with the help of AI, before being checked again by a BBC Journalist. It's part of a pilot. Follow Essex news on BBC Sounds, Facebook, Instagram and X.


Telegraph
32 minutes ago
- Telegraph
WH Smith locked in legal battle over unsold vapes
The high street chain previously known as WH Smith is embroiled in a legal row over unsold vapes after a government ban on single use e-cigarettes. TG Jones is facing a court battle over its contract with NPB Brands after it sent back boxes of unsold disposable vapes following the countrywide ban. NPB Brands and TG Jones are in dispute over the terms of their contract. A court hearing is expected to take place next week. TG Jones is the new name of WH Smith's high street stores after WH Smith sold off its estate to focus on airport and rail shops, which are still called WH Smith. The legal tussle comes after the Government last month banned shops from being able to sell single-use vapes both online and in stores. Traders that continue to sell them risk a fine of £200, followed by an unlimited fine or jail time for repeat offending. The ban is part of a push to stop children buying disposable vapes, which have become popular thanks to their various fruit flavours. Around 7pc of 11 to 17-year-olds vape regularly or occasionally, up from 4.1pc in 2020. Almost one in five of children in that age bracket admit to having tried vaping. Figures from the World Health Organisation have suggested that the proportion of 11-year-olds who vape is significantly higher in England compared to countries including Italy, Sweden, Germany and Spain. Announcing the ban last year, Andrew Gwynne, a former junior health minister, said the step would 'reduce the appeal of vapes to children and keep them out of the hands of vulnerable young people'. From June, retailers have only been able to sell reusable vapes. Ministers have said the ban will also stop the 'avalanche' of rubbish generated from disposable vapes – which are not refillable and are unable to be recharged. Typically people have thrown them away with their general waste in black bins or littered. Even when they are recycled they need to be taken apart by hand. The legal tussle over its supplier contract comes as the TG Jones brand starts to appear above high street stores, with the new name replacing WH Smith. It follows the purchase of WH Smith's high street stores by Modella Capital earlier this year. Modella said the TG Jones name 'feels like a worthy successor' to WH Smith. A spokesman for the company said earlier this year: 'Jones carries the same sense of family and reflects these stores being at the heart of everyone's high street.' NPB Brands declined to comment. A spokesman for TG Jones said: 'As a matter of policy we would never comment on a commercial dispute between ourselves and a supplier.'