Top savings accounts of the week: Britons urged to secure up to 8% interest as experts predict 2025 will bring ‘several rate drops’

A falling base rate is likely see a reduction in the returns offered to savers by banks and building societies. Some analysts predict another interest rate cut in February, although borrowing costs remain high for many.

Any cut could particularly affect those who take the interest from savings to top up their income.

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The pool of savings accounts paying a guaranteed return of over five per cent is getting smaller

PEXELS

While many banks and building societies have started to cut savings rates, some are continuing to provide competitive deals. Experts from Moneyfactscompare have compiled a list of the best savings accounts for this week with Nationwide Building Society, NatWest and Virgin Money among the banks making the cut.

Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk said: “There was a mixed bag of activity within the top rate savings tables week-on-week, with withdrawals, launches, increases and reductions across all areas.

“Challenger banks remain to be the most active, even securing a few new market-leading rates, one of which was Tandem Bank, it takes the top position within the two-year fixed bond market paying 4.65 per cent.

“Cash ISAs have seen more reductions than increases, which will be disheartening for savers looking to maximise their tax-free savings. In more positive news, Moneybox has increased the rate on its Cash ISA (0-3 withdrawals pa) which sees it take the top position and the comeback of five per cent returns.

“Whilst last week’s hold to interest rates was unsurprising with stubborn inflation which may leave savers feeling apathetic to saving, it would not be unsurprising for this attitude to continue into 2025 especially with several drops predicted. However, it is crucial that consumers avoid waiting to pull the trigger on any enticing deals until the new year to avoid disappointment.”

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Best regular savings accounts

Here is a full list of the best regular savings accounts on offer for the week beginning December 23, 2024:

• 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

• Al Rayan Bank – 4.80 per cent AER / Gross
• Habib Bank Zurich plc – 4.80 per cent AER / Gross
• Habib Bank Zurich plc – 4.80 per cent AER / Gross
• SmartSave – 4.79 per cent AER / Gross
• Castle Trust Bank – 4.78 per cent AER / Gross
• Vida Savings – 4.77 per cent AER / Gross
• HBL Bank UK – 4.73 per cent AER / Gross
• LHV Bank – 4.73 per cent AER / Gross
• Zenith Bank (UK) Ltd – 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 rate attached for the week beginning December 23, 2024:

• Virgin Money – 4.52 per cent AER / Gross
• Shawbrook Bank – 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
• Castle Trust Bank – 4.46 per cent AER / Gross
• Cynergy Bank – 4.45 per cent AER / Gross
• Aldermore – 4.45 per cent AER / Gross
• UBL UK – 4.41 per cent AER / Gross

• Moneybox – Five per cent AER / Gross
• Plum4.93 per cent – AER / 4.86 per cent Gross
• Trading 212 – 4.90 per cent AER / 4.78 per cent Gross
• Monument Bank – 4.76 per cent AER / 4.66 per cent Gross
• Mansfield BS – 4.75 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
• Chip – 4.58 per cent AER / 4.49 per cent Gross
• Zopa – 4.55 per cent AER / 4.45 per cent Gross

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 December 23, 2024:

• 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
• Paragon Bank4.75 per cent AER / 4.65 per cent Gross
• Chetwood Bank – 4.71 per cent AER / 4.61 per cent Gross
• Secure Trust Bank4.65 per cent AER / 4.55 per cent Gross
• West Brom BS – 4.65 per cent AER / Gross
• Family Building Society – 4.65 per cent AER / Gross

Here is a full list of the best easy-access savings with a bonus attached for the week beginning December 23, 2024:

• Chase – Five per cent AER / 4.89 per cent Gross
• GB Bank – 4.86 per cent AER / 4.75 per cent Gross
• Sidekick Money – 4.75 per cent AER / 4.64 per cent Gross
• Chip – 4.72 per cent AER / 4.62 per cent Gross
• Principality BS – 4.55 per cent AER / 4.55 per cent Gross
• Cynergy Bank – 4.50 per cent AER / per cent Gross
• Nottingham BS – 4.50 per cent AER / per cent Gross
• Skipton BS – 4.40 per cent AER / per cent 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