Choosing the right savings vehicle can be tricky. The main things to consider are the interest rate, whether the interest rate has any guarantees, and what the maximum and minimum balances are. Other considerations might be how quickly you can access the money, when the interest is paid (i.e. monthly or once a year) and whether you want to make regular contributions, as opposed to depositing a lump sum. Here are the best accounts in their categories.
The best for instant access is the Birmingham Midshires Internet Easy Access, with an interest rate of 5.2% per year (the ‘AER’ rate), which is 4.16% after basic rate tax. The minimum balance is £1 and the maximum £5m. The downsides are that there the rate isn’t guaranteed (i.e. Birmingham Midshires can change it when they feel like it) and the interest is paid just once a year on the anniversary of the account opening….