Bank Deposit Accounts
Savings are guaranteed by the Government under the
Financial Services Compensation Scheme (FSCS) as long as the
provider has a UK banking licence. Individuals are guaranteed the
first £85,000 of deposits per UK banking licence. The level of
cover for couples is £170,000. This means that savers can spread
their risk by investing in accounts with banks that have seperate
FSA authorisation (FRN numbers), potentially utilising the
guarantee multiple times. Although numerous takeovers and mergers
have complicated who owns whom and whether they have retained
separate banking licences, the FSA has a helpful page for
this purpose and we have only included providers where we are
confident that they are covered. This also applies to Cash ISAs.
All deposit accounts are taxed as income at your marginal rate of
tax.
Regular Saver
These allow depositors to invest an amount of money on a monthly
basis. The amount investors can deposit on a monthly basis will be
fixed between two bands by the provider and the rate of interest
may be fixed or variable normally typically depending on whether
withdrawals are allowed.
|
Regular Saver Accounts
|
Gross AER
|
As of
|
Notice
|
Savings Level
|
Offer period
|
Net Lower rate income tax
|
Net Higher rate income tax
|
|
Norwich & Peterborough BS: Regular Saver
|
4.00%
|
31/01/2012
|
Instant
|
£1-£250
|
2.15% for 12 months
|
3.20%
|
2.40%
|
|
Teachers BS: Regular Saver Issue 3
|
4.00%
|
31/01/2012
|
None
|
£10-£250
|
2.4% for 12 months
|
3.20%
|
2.40%
|
|
Buckinghamshire BS: Chiltern Gold Builder Issue 2
|
3.50%
|
31/01/2012
|
Instant
|
£25-£250
|
N/A
|
2.80%
|
2.10%
|
|
Progressive BS: Clockwork Regular Saver Issue 1
|
3.30%
|
31/01/2012
|
Instant
|
£20-£250
|
N/A
|
2.64%
|
1.98%
|
|
Beverley BS: Monthly Saver
|
3.10%
|
31/01/2012
|
Instant
|
£10 - £1000
|
N/A
|
2.48%
|
1.86%
|
Variable Accounts
Investors are advised to consult the provider of these products
as the terms can be variable. The most important information is,
however, included below. The accounts here are those with the
highest Annual Equivalent Rate.
These tend to offer reasonably attractive rates as the notice
period is fixed for short period of time, typically between two and
four months. Interest rates are variable, although they don't tend
to change frequently, and the notice and minimum deposit will
vary.
|
Variable Accounts
|
Gross AER
|
As of
|
Notice
|
Min Deposit
|
Introductory Bonus
|
Net Lower rate income tax
|
Net Higher rate income tax
|
|
Santander : e-saver Issue 4
|
3.10%
|
31/01/2012
|
Instant
|
£1
|
2.60% for 12 months
|
2.48%
|
1.98%
|
|
Post Office Ltd: Online Saver Issue 4
|
3.01%
|
31/01/2012
|
Instant
|
£1
|
1.2% for 12 months
|
2.41%
|
1.93%
|
|
Coventry BS: Family Saver
|
3.00%
|
31/01/2012
|
Instant
|
£1
|
1% for 12 months
|
2.40%
|
1.92%
|
|
ING Direct: Savings Account
|
2.90%
|
31/01/2012
|
Instant
|
£1
|
2.60% for 12 months
|
2.32%
|
1.86%
|
|
Principality BS: eSaver Issue 4
|
2.85%
|
31/01/2012
|
Instant
|
£1
|
1.2% for 12 months
|
2.28%
|
1.82%
|
Notice Accounts
These tend to offer reasonably attractive rates as deposits are
fixed for short period of time, typically between 2 and 4 months.
Interest rates are variable, although they don't tend to change
frequently, and the notice and minimum deposit will vary.
|
Notice Accounts
|
Gross AER
|
As of
|
Term/Notice
|
Min Deposit
|
Fixed/Variable
|
Net Lower rate income tax
|
Net Higher rate income tax
|
|
Shawbrook Bank: 120 Day Notice Personal Savings Account Issue 1
|
3.45%
|
31/01/2012
|
120 Days
|
£1,000
|
Variable
|
2.76%
|
2.07%
|
|
Shawbrook Bank: 95 Day Notice Personal Savings Account Issue 1
|
3.35%
|
31/01/2012
|
95 Days
|
£1,000
|
Variable
|
2.68%
|
2.01%
|
|
Melton Mowbray BS Online 100 Day Notice
|
3.14%
|
31/01/2012
|
100 Days
|
£1,000
|
Variable
|
2.51%
|
1.88%
|
|
Aldermore: 90 Day Notice
|
3.10%
|
31/01/2012
|
90 Days
|
£1,000
|
Variable
|
2.48%
|
1.86%
|
|
Derbyshire BS: Platinum Notice Account
|
3.05%
|
31/01/2012
|
60 Days
|
£5,000
|
Variable
|
2.44%
|
1.83%
|
|
Julian Hodge Bank: Extra High Interest
|
3.05%
|
31/01/2012
|
90 Days
|
£1,000
|
Variable
|
2.44%
|
1.83%
|
The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested.
Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors
on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are
dependent on your individual circumstances and are subject to change.
Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only