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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
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Health & travel
Featured - Switching deals
In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
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As its Income Bonds and Direct Saver are slashed for the second consecutive month, the Government-backed provider also plans to cut the prize fund yet again on its Premium Bonds.
From 20 December 2024, National Savings and Investments (NS&I) will reduce rates on its Income Bonds and Direct Saver, to 3.49% AER and 3.50% AER respectively. This marks the second drop in two months after rates on both products were previously reduced to 3.75% AER in November.
These latest changes are in response to the changing savings market and balance “the interests of our savers, taxpayers and the wider financial services sector,” according to Andrew Westhead, NS&I Retail Director.
While these accounts may still offer above average easy access returns, which today (27 November 2024) sit at 2.97%, and many savers may like the security they offer as they’re back by HM Treasury, their appeal may now be waning when compared to the leading rates.
The fallout from last month’s Autumn Budget, coupled with the latest cut to the Bank of England base rate, have hit variable returns hard in recent weeks.
What’s more, with inflation rising to 2.3% last week, any savers who haven’t stored funds in a high-paying account could struggle to grow their cash significantly in real terms.
It’s therefore a good idea for savers to review their portfolios and be prepared to switch accounts to secure better rates. This includes considering less-known brands which can offer some of the best-performing accounts on the market.
Atom Bank, for instance, currently pays the market-leading rate for an easy access account at 4.85% AER, marking a significant drop when compared to the 5.00% AER returns available this time last month.
This being said, rates above 5% are still available for savers in the easy access ISA sector, with Plum’s Plum Cash ISA paying 5.18% AER when considering a 1.37% bonus for 12 months.
Note that while these accounts are not backed by the Government, your cash is still protected under the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per banking licence.
You can use our regularly updated savings chart to compare the best rates on the market.
Our weekly savings roundup can also give you more information on some of the top-performing accounts.
NS&I also announced a cut to its Premium Bonds prize fund rate, which will drop from 4.15% to 4.00% for the January 2025 prize draw.
This now means for every £100 of Premium Bonds purchased, only £4.00 will be paid out in prizes on average, down from £4.15 currently.
This comes after the rate was previously lowered from 4.40% to 4.15% in October. Despite the reduction, the odds of winning are set to remain the same, holding at 22,000 to 1 after dropping last month from 21,000 to 1.
Nevertheless, NS&I is confident that Premium Bonds will “remain a popular choice for millions of savers”, with Westhead expecting the revised draw to deliver “over 5.8 million tax-free prizes worth more than £431 million”.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.