Synergy Bank’s new interest rate puts it at the top of the best-buying table for easy access, just a day after another table-topper raised its interest rate. So, as the savings rate increases, let’s take a look at Synergy’s new account.
Also, I will highlight some more ways to increase your cash interest rate.
What is the new savings rate of Synergy Bank?
Synergy Bank’s new Easy Access account offers 0.66% AER interest, which includes a fixed bonus of 0.36% for one year.
To open an account, you must apply online through the Cynergy website. The minimum deposit required is only £ 1, so you can start saving even if you have little luck.
Note that since there is a temporary bonus in the account, the interest rate will come down to 0.3% AER variable after 12 months. As a result, it’s less likely to be market-led in a year from now, so if you go for it, make sure you keep track of the easiest access within 12 months.
Unlike other ‘easy access’ deals seen in recent months, Synergy’s accounts are really easy to access. This is because you can withdraw as much as you want from the account without penalty.
How do you compare other easy access savings rates?
At 0.66%, Synergy Bank’s new account puts it ahead of the easy access competition. However, if you want to save somewhere else, the Coventry Building Society offers a slightly lower 0.65% AER variable. Its interest rate does not include a bonus, so it is not certain that it will be reduced in one year, as opposed to the Synergy account.
However, there is one big flaw in the Coventry account: you can only make four withdrawals a year without penalties. If you withdraw five or more rupees, you will be paid 50 days interest based on the amount you receive each time.
If the Coventry account is not for you, then both Marcus and Saga accounts pay 0.6% AER interest. Savings rates on these accounts include a 0.1% fixed bonus for one year.
How do I find high savings rates?
Despite the introduction of new easy access table-toppers, there is no problem surrounding the fact that the easiest access savings rates remain low.
To increase your savings rate, you have three main options.
1. Notice the accounts
Notification accounts are similar to Easy Access accounts, but you must adhere to an agreed notice period before withdrawing. Often, the longer the notice period, the higher the interest rate.
At this point, you can earn 1.06% AER variable interest through OakNorth’s 120-day notice account.
For more options, see our recent article Advantages and Disadvantages of Notification Accounts.
2. Fixed savings account
If you are happy to keep cash for a year or more, there may be a specific savings account for you. This is because the savings rate on these accounts is higher than the easy access deal.
Currently, you can fix 1.36% AER with Jopper’s one year fixed account, or 1.65% AER with Mathaven Bank’s two year fixed offer. See a list of our top-rated specific savings accounts for more options.
3. Regular savings account
Regular savings accounts allow you to withdraw cash every month. The savings rate on these accounts may be higher, although you are often limited in how much you can deposit.
If you are an RBS or NatWest customer, you can earn 3.04% AER variable through their regular savings account. However, you can only save up to £ 50 per month. Alternatively, the Coventry Building Society has a regular savings account that provides a 1.05% AER variable. You can save up to 500 per month in this account.
See our list of top-rated regular savings accounts for more options.
Savings rate: What else do you need to know?
While it can be tempting to follow the highest savings rate, only accounts with a UK banking license bring FSCS protection up to £ 85,000 to your savings. This protection means that if your bank or building society is ruined, your money is safe up to the limit. All accounts listed in this article have FSCS protection.
When applying for a savings account, you should also know that your credit score is not affected because you do not have to do a credit check. However, you may need to do an identity check.
Before deciding which savings account to open, always consider the advantages and disadvantages of each type of account. For example, if you know you won’t need access to your money for at least a year, a fixed savings account may be the best option. However, if you prefer direct access to your cash, easy access options are probably the best.
Ready to access the best savings rates? See a list of our top-rated savings accounts.
Was this article helpful?
The Motley Full UK site offers some offers from our partners – how we make money and keep this site going. But does it affect our ratings? No. Our promise is to you. If a product is not good, our rating will reflect it, or we will not list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The above statements are not provided or approved by Motley Flower alone and by bank advertisers. John McKee, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of motley flowers. Motley Full UK has recommended Barclays, Hargreaves Lansdowne, HSBC Holdings, Lloyds Banking Group, MasterCard and Tesco.