‘Good news for savers looking for guaranteed returns’ as bank offers 8% interest rate

With the consumer price index (CPI) falling near to the Bank’s desired target of two per cent, the MPC has voted to slash the base rate to 4.75 per cent. However, committee members have failed to vote on additional cuts in recent months.

Despite this, economists are expecting further action from the Bank of England in 2025 which could impact the savings interest rates on offer to bank customers later in the year.

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It’s “good news” for savers this week as those looking for a guaranteed return can get increased interest rates

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Rachel Springall, Finance Expert at Moneyfactscompare.co.uk said: “There has been some good news for savers looking for guaranteed return on their cash this week due to rate increases on some of the top fixed rate bonds and ISAs, albeit by small margins.

“Kick starting the savings habit is wise to do as we enter a new year, its never too late to start saving little and often to build up an emergency pot. As providers improve rates and others stagnate, it’s imperative for savers to review their existing pots and switch if they are getting a raw deal.

“Savers who are debating what type of account will work hardest for them in 2025 must ensure they keep within their Personal Savings Allowance (PSA), but if they fear they will breach it, be sure to take advantage of their ISA allowance to protect their savings interest from tax.

“Regular savings accounts work well to instill the habit due to their regular payment structure, but easy access accounts allow more flexibility. However, some of the top rate easy access accounts can limit the number of withdrawals made each year, or carry a bonus, so careful planning is wise. Savers need to carefully check the terms and conditions of any account before they commit.”

Best regular savings accounts

Here is a list of the best regular savings accounts currently on offer for the week beginning January 13, 2025:

• Principality BS – Eight per cent AER / 7.85 per cent Gross
• The Co-operative Bank – Seven per cent AER/Gross
• Principality BS – Seven per cent AER/Gross
• Nationwide BS – 6.50 per cent AER/Gross
• NatWest – 6.17 per cent AER / Six per cent Gross
• Royal Bank of Scotland – 6.17 per cent AER / Six per cent Gross
• Melton BS – Six per cent AER/Gross
• West Brom BS – Six per cent AER/Gross
• Market Harborough BS – Six per cent AER/Gross
• TSB – Six per cent AER/Gross.

Best fixed-rate savings account

Here is a list of the best savings accounts on offer with a one-year fixed-rate interest rate attached for the week beginning January 13, 2025:

• Vida Savings – 4.77 per cent AER/Gross
• Secure Trust Bank – 4.76 per cent AER/Gross
• SmartSave – 4.76 per cent AER/Gross
• Habib Bank Zurich plc – 4.75 per cent AER/Gross
• Habib Bank Zurich plc – 4.75 per cent AER/Gross
• Close Brothers Savings – 4.75 per cent AER/Gross
• Isbank – 4.74 per cent AER/Gross
• Zenith Bank (UK) Ltd – 4.72 per cent AER/Gross
• FCMB Bank (UK) – 4.72 per cent AER/Gross
• Oxbury Bank – 4.70 per cent AER/Gross

Best cash ISAs

Here is a full list of the best cash ISAs with a one-year fixed interest rate attached currently on offer for the week beginning January 13, 2025:

• Shawbrook Bank – 4.53 per cent AER/Gross
• Castle Trust Bank – 4.53 per cent AER/Gross
• Virgin Money – 4.52 per cent AER/Gross
• Secure Trust Bank – 4.52 per cent AER/Gross
• Close Brothers Savings – 4.52 per cent AER/Gross
• Aldermore – 4.49 per cent AER/Gross
• Hodge Bank – 4.49 per cent AER/Gross
• Charter Savings Bank – 4.49 per cent AER/Gross
• Kent Reliance – 4.48 per cent AER/Gross
• Hampshire Trust Bank – 4.46 per cent AER/Gross

Here is a full list of the best cash ISAs with a variable interest rate attached currently on offer for the week beginning January 13, 2025:

• Plum – 5.01 per cent AER / 4.94 per cent Gross
• Moneybox – Five per cent AER/Gross
• Trading 212 – 4.90 per cent AER / 4.78 per cent Gross
• Chip – 4.85 per cent AER / 4.75 per cent Gross
• Monument Bank – 4.76 per cent AER / 4.66 per cent Gross
• Mansfield BS – 4.75 per cent AER/Gross
• Tipton & Coseley BS – 4.65 per cent AER/Gross
• West Brom BS – 4.60 per cent AER/Gross
• Vanquis Bank – 4.60 per cent AER/Gross
• Tipton & Coseley BS – 4.60 per cent AER/Gross

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Best easy access savings accounts

Here is a full list of the best easy access savings accounts without a bonus attached for the week beginning January 13, 2025:

• Atom Bank – 4.85 per cent AER / 4.75 per cent Gross
• Gatehouse Bank – 4.75 per cent AER / Gross
• cahoot – 4.75 per cent AER / Gross
• Ulster Bank – 4.75 per cent AER / Gross
• Chetwood Bank – 4.66 per cent AER / 4.56 per cent Gross
• Coventry BS – 4.66 per cent AER / Gross
• Secure Trust Bank – 4.65 per cent AER / 4.55 per cent Gross
• West Brom BS – 4.65 per cent AER / Gross
• Buckinghamshire BS – 4.60 per cent AER / Gross
• The Co-operative Bank – 4.59 per cent AER / Gross

Here is a full list of the best easy access accounts with a bonus attached for the week beginning January 13, 2025:

• Chase – Five per cent AER / 4.89 per cent Gross
• GB Bank – 4.86 per cent AER / 4.75 per cent Gross
• Chip – 4.85 per cent AER / 4.74 per cent Gross
• Sidekick Money – 4.75 per cent AER / 4.64 per cent Gross
• Principality BS – 4.55 per cent AER / Gross
• Cynergy Bank – 4.50 per cent AER / Gross
• Nottingham BS – 4.50 per cent AER / Gross
• Skipton BS – 4.40 per cent AER / Gross
• Marcus by Goldman Sachs® – 4.30 per cent AER / 4.22 per cent Gross
• SAGA – 4.30 per cent AER / 4.22 per cent Gross