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Bank Deposit Accounts

Savings are covered by the Financial Services Compensation Scheme (FSCS) as long as the provider has a UK banking licence. Individuals are able to claim against the FSCS for the first £75,000 of deposits per licensed provider.

Accordingly, the level of cover for couples is £150,000. This means that savers can spread their risk and effectively increase the amount covered by investing in accounts with multiple banks that have separate FCA authorisations. Although there have been numerous takeovers and mergers which has complicated who owns whom and whether they have retained separate banking licences, the FCA has a helpful page for this purpose.

Regular Saver

These accounts require depositors to invest money on a monthly basis. The amount investors deposit on a monthly basis will be fixed between two bands by the provider. Although the rate of interest earned on this investment may be higher than other accounts there are typically rigid terms and conditions, including whether withdrawals are allowed.

Regular Saver Accounts Gross AER As of Notice Savings Level Offer period Net Lower rate (20%) income tax Net Higher rate (40%) income tax
Nottingham BS: Regular Saver 3.10% 19/02/2016 Instant £10 - £250 N/A 2.48% 1.86%
Leeds BS: Regular Saver Issue 3 3.05% 19/02/2016 Instant £50 - £250 N/A 2.44% 1.83%
Leek United BS: Regular Savings 2.25% 19/02/2016 Instant £25 - £500 N/A 1.80% 1.35%
Furness BS: Lifestyle Saver 2.05% 19/02/2016 Instant £1 - £250 N/A 1.64% 1.23%

Variable Saver

The rates offered in these investments can change depending on the Bank of England base rate and the provider's competitive stance. Investors are advised to consult the provider of these products as the terms will be variable. The variable rates offered will also differ depending on the notice period required for withdrawals, in general the longer the notice period the higher the variable rate. However, below we have only highlighted the accounts with instant access.

Variable Accounts Gross AER As of Notice Min Deposit Introductory Bonus Net Lower rate (20%) income tax Net Higher rate (40%) income tax
Newbury Building Society 1.65% 19/02/2016 None £50 N/A 1.32% 0.99%
Loughborough Building Society 1.55% 19/02/2016 None £1 N/A 1.24% 0.93%
RCI Bank 1.55% 19/02/2016 None £1 N/A 1.24% 0.93%
Cumberland Building Society 1.50% 19/02/2016 None £1 N/A 1.20% 0.90%
Virgin Money E-Saver Issue 4 1.41% 19/02/2016 None £1 N/A 1.13% 0.85%
Shawbrook Bank Easy Access 3 1.30% 19/02/2016 None £1,000 N/A 1.04% 0.78%
National Counties Building Society 1.26% 19/02/2016 None £500 N/A 1.01% 0.76%
Aldermore Easy Access Issue 9 1.25% 19/02/2016 None £1,000 N/A 1.00% 0.75%

Notice Accounts

These accounts require the investor to give notice before making a withdrawal, or else incur penalties. They tend to offer reasonably attractive rates as deposits are locked away for a short period of time, typically between 2 and 4 months, and minimum deposits will vary. Although these interest rates tend to be variable, they do not tend to change frequently.

Notice Accounts Gross AER As of Term/Notice Min Deposit Fixed/Variable Net Lower rate (20%) income tax Net Higher rate (40%) income tax
United Trust Bank 1.75% 19/02/2016 200 Days £500 Variable 1.40% 1.05%
Charter Savings Bank: 120 Day Notice Issue 4 1.70% 19/02/2016 120 Days £1,000 Variable 1.36% 1.02%
Hampshire Trust Bank: 90 Day Notice Issue 6 1.65% 19/02/2016 120 Days £500 Variable 1.32% 0.99%
Raphaels Bank 1.55% 19/02/2016 180 Days £1,000 Variable 1.24% 0.93%
Shawbrook: 120 Day Notice Personal Savings Account Issue 17 1.55% 19/02/2016 120 Days £1,000 Variable 1.24% 0.93%
Charter Savings Bank: 95 Day Notice issue 4 1.55% 19/02/2016 95 Days £500 Variable 1.24% 0.93%
Hampshire Trust Bank: 90 Day Notice Issue 6 1.50% 19/02/2016 90 Days £1,000 Variable 1.20% 0.90%
Shawbrook: 95 Day Notice Personal Savings Account Issue 27 1.50% 19/02/2016 95 Days £1,000 Variable 1.20% 0.90%

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