The best cash ISAs and savings accounts in April paying highest interest rates
Mortgage costs may rise and there may be concerns about the cost of living with inflation on the rise again; But with high competition and broader economic factors pushing savings account interest rates into premium territory, savers should find themselves in a great place right now.
Lots of banks, lenders and digital platforms are competing for your money, and given inflation of 3%, it’s vital that you have your savings somewhere to earn much more than that – and many people are doing just that right now.
Here’s our neat roundup of the best savings deals; Rates are correct at the time of writing but always make sure an account suits your circumstances beyond the headline rate, including bonus periods, withdrawal allowances and more. Rates are AER (annual equivalent rate) for easy comparison.
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “Many top rates outpace inflation by over 1%, meaning a high-payout savings account can significantly increase savers’ real returns while remaining above target. When deciding which account is best, it’s important for savers to balance flexibility with certainty. Easy-access accounts are suitable for those who need to withdraw cash quickly, while fixed-rate deals offer guaranteed returns.”
Best cash ISAs
An ISA is a tax-free version of a regular savings account; You do not pay tax on the interest earned, regardless of the amount.
It’s a very simple three-way battle at the moment for the best rate in terms of cash ISA; Your choice will be determined by which bonus you have already used and when you think you may need to withdraw money in the future.
Prosper gives a good deal for new members gaining a market leading position 4.7% Variable interest rate for the first 12 months. This includes a 1.92% increase paid into your designated bank account after 12 months or when the account is closed. It is not eligible for transfers, only “new” ISA money.
Trading 212’s 3.6% offer isn’t the highest – but only when you use a special code Independent, 4.58% this gives you another challenge rate at the moment. The validity period of the bonus is one year and you can withdraw as much money as you want. Transfers here are also not eligible for the bonus.
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Finally, Plum determined the residual rates as follows: 4.57% To remain highly competitive – but you need to make sure the terms of this meet your likely needs – you won’t get the full rate until a bonus is paid out at the end of 12 months; During this time your account must still be open and you must not have transferred your ISA elsewhere. Otherwise you’ll get a much lower rate of 2.54%; This is the rate after the first year. ISA now has a flexible structure.
Another great rate to highlight is XTB. 6% offer – but this is an increased rate for new cash ISA registrations for 90 days, which then drops to 4%.
Many other companies such as Tembo, Tesco Bank, Moneybox and Hargreaves Lansdown offer rates above 4%, so make sure your money is somewhere offering a competitive amount before the ISA deadline.
The most easily accessible savings accounts
If you need a home to save beyond tax-free ISAs, perhaps because you’ve maxed out your limits or want accessible rainy day money, an easy-access account is what you want.
Cahoot’s Sunny Day Saver is the leader 5%but only for balances up to £3,000. LHV offer 4.25% and with Sidekick 4.23% – but only for six months before falling by 1% – there are alternatives.
Chase’s long-running offer remains attractive 4.5% including an annual bonus and an annual bonus from Mansfield Building Society 4.25%. The latter only allows three withdrawals per year.
A slightly different Tembo offer 4.75% It’s in a HomeSaver account that adds another 1% bonus if you use their services to get a mortgage for the home you’re saving.
Best fixed-term savings accounts
Fixed-term bonds or savings accounts mean you lock up your cash to get a predetermined rate. You usually won’t be able to access your cash during this time, but the upside is that you’ll get the same interest rate even if the Bank of England reduces the base rate or companies switch other products.
Chetwood Bank has the best one-year deal offer 4.65% While Vida Savings currently offers 4.61% for the best two-year deal. Remember, for tax purposes, the interest earned is calculated when it is paid to you, rather than distributed over the course of the term.
For more fixed-term deals, you can see our full list here, and if you want to search for the best regular savings accounts earning up to 7.1%, read here.
