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nothing for those who entrust them
with their cash deposits, so start
shopping around.
A comparison site will tell you what
is on the market, but don’t be put
off by a name you don’t recognise.
As long as the bank is a member
of the UK’s Financial Services
Compensation Scheme (FSCS) – or a
European equivalent – it may make a
considerable difference.
For instance, HSBC’s Flexible Saver
offers just 0.15 per cent gross AER
(annual equivalent rate), whereas Al
Rayan Bank’s easy access Everyday
Saver is paying 1.6 per cent. On a balance
of £85,000 – the protection limit offered
by the FSCS – that’s a difference of more
than £1,000 in interest. It could be the
difference between earning £127.50 a
year in interest, or £1,360.
Look for a regular savings account,
advises Anna Bowes, co-founder
of independent savings advice site,
Savings Champion.
You should look for the best
possible savings account
you can find. Most high-
street banks offer almost
nothing for those who
entrust them with their
cash deposits
FE TRUSTNET
8 / 9
20%
– proportion of UK
employees who have
skipped meals to make
ends meet
“Not only do these tend to offer
some of the best rates on the market,
but they also help to develop a savings
discipline, especially those accounts
that insist that a monthly deposit
is made.”
Some banks will save the best rates
for those who hold current accounts.
For example, First Direct offers
current account holders a 12-month
flexible saver account that pays a 5 per
cent AER.
“The other thing to ensure is that you
are looking at comparing like for like
when shopping around,” says Bowes.
“That means looking at cash savings
accounts rather than products that
look similar but have a different level
of risk, such as mini bonds, corporate
bonds or peer-to-peer lending.”
Don’t be swayed by higher interest
rates. These products may be
marketed as savings vehicles, and
even carry guarantees, but there will
be risks and they may not be covered
by the FSCS.