Discover the Best Savings Options for 2023
Table of Contents
- Introduction
- Inflation Rate Update
- Anticipated Drop in the Base Rate
- Impacts on Fix Rates
- Metro Bank: High Rates and Financial Troubles
- Best Fixed Rate Savings Accounts
- Six-Month and Nine-Month Fix Accounts
- Twelve-Month Fix Account
- Eighteen-Month Fix Account
- Two-Year Fix Account
- Three-Year, Four-Year, and Five-Year Fix Accounts
- NS&I Green Savings Bond Cut and Exceeded Funding Targets
- Best Regular Saver Accounts
- Open to Everyone: Gatehouse Regular Saver Account
- Loyalty Accounts: Century Building Society Regular Saver Account
- Other Regular Saver Options
- Best Easy Access Savings Accounts
- Metro Bank: Highest Paying Easy Access Account
- Other Options for Easy Access Accounts
- Best Notice and Limited Access Savings Accounts
- Notice Accounts
- Limited Access Accounts
- Best ISA Accounts
- Metro Bank ISA Accounts
- Zopa ISA Account
- Moneybox Limited Access ISA Account
- Barkley's Flexible ISA Account
- Virgin Money ISA Account
- Conclusion
The Best Savings Accounts for Your Money in December 2023
Welcome to my December 2023 update on the best savings accounts for your money in the UK. In this article, we will discuss the latest inflation rate, anticipated changes in the base rate, impacts on fix rates, updates on Metro Bank, and the top savings accounts across different categories.
Inflation Rate Update
The most recent inflation figures for October Show that inflation fell to 4.6%, which is slightly lower than anticipated. This decrease in inflation is good news for savers as it means that there are now numerous savings accounts that beat inflation. Previously, finding a savings account with a rate higher than inflation was practically impossible. However, with the Current rate and the expected further drop in inflation, almost every Type of savings account now beats inflation.
Anticipated Drop in the Base Rate
The falling inflation rate has led analysts and markets to predict an earlier-than-expected drop in the base rate. It is now believed that the base rate will drop sooner than previously anticipated. This means that the base rate will remain high for a longer period of time, leading to a decline in longer-term fix rates.
Impacts on Fix Rates
The decrease in inflation and the anticipated drop in the base rate have caused fix rates to decline rapidly. When comparing the best fix rates to those from just a few weeks ago, significant drops are evident. For example, three-year, four-year, and five-year fix rates have seen substantial decreases. It is clear that interest rates peaked a few weeks ago, and their continuous decline is a downward trend that is likely to persist.
Metro Bank: High Rates and Financial Troubles
Metro Bank, despite facing some financial troubles, is currently at the top of various savings account categories. Metro Bank offers competitive rates on easy access, one-year fix, and regular saver accounts. While there have been concerns regarding Metro Bank's financial stability, recent developments, such as a shareholder-approved rescue deal, changes in operating hours, and staff reductions, indicate that the bank is taking steps to shore up its finances.
Best Fixed Rate Savings Accounts
If You're looking for fixed rate savings accounts, there are several options available across different time periods. Currently, Monument Bank offers the highest rates for six-month and nine-month fix accounts. Metro Bank is the top contender for a one-year fix account, while Gatehouse and Beyond Society offer the best rates for 18-month and two-year fix accounts, respectively. BLME dominates the field when it comes to three-year, four-year, and five-year fix accounts, although these rates have seen significant drops in recent months.
NS&I Green Savings Bond Cut and Exceeded Funding Targets
The NS&I Green Savings Bond has undergone a major rate cut, falling from 5.7% to 3.95%. This reduction is disappointing for those seeking to save ethically. However, the rate cut is attributed to NS&I exceeding its funding targets for the year. The fact that they surpassed their targets indicates that they no longer need to Raise additional funds, resulting in less competitive rates for savers.
Best Regular Saver Accounts
In the realm of regular saver accounts, there are two new options available. Gatehouse offers a regular saver account open to everyone, while Century Building Society provides a loyalty-Based regular saver account for long-term customers. Both accounts offer a rate of 7%, allowing savers to grow their money more effectively. Additionally, options from Nationwide, First Direct, Club Lloyds, and NatWest/RBS remain competitive in the regular saver market.
Best Easy Access Savings Accounts
Although easy access rates have dropped, there are still competitive options available. Metro Bank stands out as the highest paying easy access account, offering a rate of 5.22%. Other options from DF Capital, Ulster Bank, Cahoot, and Beehive Money also offer attractive rates for savers to consider.
Best Notice and Limited Access Savings Accounts
For those who can afford to give notice before accessing their savings, Monument, Hampshire Trust Bank, and El Shilon Building Society offer competitive rates for different notice periods. Limited access accounts, while not the most advantageous, provide decent rates for those who can manage with fewer withdrawals.
Best ISA Accounts
If you're looking for tax-efficient savings, ISA accounts are worth considering. Metro Bank features again with competitive rates on easy access and one-year fixed ISA accounts. Other options from Zopa, Moneybox, Barkley's, and Virgin Money also offer attractive rates for different types of ISAs.
In conclusion, despite the overall decline in interest rates, there are still opportunities to find savings accounts that beat inflation and provide decent returns. By exploring various categories and staying informed about the latest offerings, you can make the most of your savings and achieve your financial goals. Remember to consider factors such as accessibility, notice periods, and tax efficiency when choosing the right savings account for you.