Best savings accounts and cash ISAs according to Martin Lewis – from Nationwide to Sainsbury’s

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Here are the best savings accounts and cash ISAs according to MoneySavingExpert’s Martin Lewis.

As April nears, so does the beginning of the financial year. Many people will no doubt be checking through their personal finances ahead of time, and savings accounts are no exception.

Whether you have an end goal in mind or not, we all know it’s important to save where you can. The advantage of putting your savings in a dedicated account is that you can see them grow overtime and, if you’re savvy enough, watch the account do the work for you.

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Generally speaking, you can get a higher interest for fixed-term accounts in comparison to easy access. A fixed-rate account means you won’t be able to access your savings for a fixed amount of time, but you’re also guaranteed a higher interest rate.

Meanwhile, an easy access account means you can access your savings at any time, but the interest rate will generally be lower. This is important to note when it comes to choosing the right savings account for you.

Best easy-access savings accounts

According to Martin Lewis at MoneySavingExpert, these are the best fixed-rate and easy-access savings accounts currently out there. Once you’ve decided which type of account is best for you, these are the ones with the highest interest rates.

  • Chip - 3.4% - minimum £1 deposit, maximum £250,000 - App
  • Zopa - 3.21% - minimum £1 deposit, maximum £85,000 - App
  • Tandem Bank - 3.2% - minimum £0 deposit, maximum £250,000 - App
  • Secure Trust Bank - 3.1% - £1,000 minimum deposit, maximum £85,000 - Online

If you’re not comfortable saving your money through an app, there are some bigger names out there for you to choose from. These are the best savings accounts from more established names.

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  • Sainsbury’s Bank - 3.07% - minimum £1,000 deposit, maximum £500,000 - Online
  • Post Office - 3% - minimum £1 deposit, maximum £2,000,000 - Online
  • Nationwide - 2.5% - minimum £1 deposit, maximum £5,000,000 - Online

Best fixed-term savings accounts

If you’ve decided on a fixed-term savings account, you’ll get a better rate than easy-access savings accounts. However, you won’t be able to withdraw your money until the end of term, so this option is best for people who are saving for a particular purpose and won’t need the money until much later.

There are short-term or longer-term savings accounts to choose from, ranging from six months to five years. Advice from Martin Lewis on MoneySavingExpert suggests there’s little incentive to choose longer term options.

This is because you only get a slightly higher interest rate and later down the line you’ll have less opportunity to switch to a better deal. Here are the best options for six and nine-month accounts.

  • Isbank through Raisin - 4.1% for nine months - minimum deposit £1,000, maximum £85,000 - Online
  • Monument - 3.85% for six months - minimum deposit £25,000, maximum £400,000 - Online
  • Atom Bank - 3.75% for six months - minimum deposit £25,000, maximum £100,000 - App

Best cash ISAs

What are cash ISAs?

Cash ISAs mean that you never pay tax on these savings accounts. If you’re in the UK and aged 16 or over, you get an ISA allowance of £20,000. This kicks in at the start of each tax year.

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A cash ISA is ideal for you if you already pay tax on savings interest. It’s also a good option if you’re likely to earn enough interest to pay tax.

Easy-access ISAs

  • Paragon Bank - 3.1% - Flexible - Online
  • Yorkshire Building Society - 3.1% - Flexible - Online, branch or post
  • Cynergy Bank - 3.05% - Not flexible - Online
  • Sainsbury’s Bank - 2.91% - Not flexible - Online
  • Post Office - 2.85% - Not flexible - Online
  • Tesco Bank - 2.85% - Flexible - Online

Fixed-rate cash ISAs

  • Shawbrook Bank - 4.06% - Online
  • Barclays - 4% - Branch
  • Virgin Money - 3.95% - Online

Two-year fixed ISAs

  • Shawbrook Bank - 4.16% - Online
  • Paragon Bank - 4.15% - Online
  • Close Brothers - 4.15% - Online
  • Close Brothers - 4.2% - Online
  • Paragon Bank - 4.15% - Online
  • UBL UK - 4.11% - Online
  • Paragon Bank - 4.15% - Online
  • UBL UK - 4.11% - Online
  • Progressive BS - 4% - Branch or post

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