April 2022’s savings round-up & news

The latest news to help you get the most from your savings account.

Here’s my monthly update sharing changes at leading UK savings accounts, as well as some of the articles you might have missed on the blog.

April’s savings update video

April savings news

Interest rates sneak up again, but they’re still well below inflation

Another month, another Bank of England base rate increase, rising to 0.75%. That’s an increase of 0.25%, and a total of 0.65% up since early December. We’ve seen easy access accounts and fixed-term accounts grow as a result.

And despite this, your savings are still losing out compared to inflation. The latest figures show inflation has hit 6.2%, and could reach 10% later in the year.

Chase offers 1.5% AER

The new “best buy” savings account for the bulk of your cash is from Chase Bank. Holders of the app only current account can now also open up to 10 savings accounts each offering 1.5%. There’s a total savings balance of £250,000 across all accounts you open, though bear in mind FSCS protection is only to £85,000. Here’s more on how it works.

I’d still stick with Virgin Money’s M Plus Current Account on balances up to £1,000 as you’ll get a higher 2.02%, boosted to 5.02% for bank switchers.

And you might also want to look at Claro’s app (2% on up to £3,000) and regular savers from Natwest, RBS and Nationwide (more on these in a bit).

ISA deadline approaches

You’ve got until 5 April to pay up to £20,000 into an ISA for this financial year. This can be across any one or combination of a Cash ISA, Lifetime ISA, Stocks & Shares ISA and Innovative Finance ISA.

If you’re thinking of using one as a place to stash your cash then you probably can get better rates elsewhere. The Personal Savings Allowance (PSA) means basic rate taxpayers can earn £1,000 tax-free in non-ISA accounts, and higher rate taxpayers can earn £500. Here’s more on how it works.

Natwest and RBS regular savers improve

The top-paying account is still the Digital Regular Saver from Newest and RBS, with a rate of 3.04% on the first £1,000 saved. Since it launched you’ve been limited to saving up to £50 a month, but in March that jumped up to £150.

This means you can reach the £1,000 limit in seven months if you’re starting from scratch, while those who have had the account for a while will be able to increase their deposits. Here’s my full analysis.

You can have this account with both Natwest and RBS, but you do need a current account with one or both of the banks before applying. Right now there’s a £150 switching offer available with both, so it’s a good time to apply.

Santander 123’s interest boost not enough

Among the banks boosting their rates is Santander on the 123 account. It now pays 0.5% rather than 0.3%. However, as my analysis shows, this isn’t enough to justify switching from the Santander 123 Lite.

Where to put your savings in April 2022

Make sure you check for updates in my regularly updated savings best buy article, and of course you might have existing accounts closed to new customers with better rates.

Of course you can fix your money for better rates, or if you’re happy to have your money in lots of different places you can mix and match the options. But if you’re looking for relative simplicity right now I’d look at the following easy access accounts:

Best places to save up to £4,000

The best option for the first £1k is Virgin Money as it is truly easy access. The next £3k is with the Claro app, but this is just for Apple devices.

This combination gets you the highest interest rates and some extra freebies.

Amount savedAccountRateNotes
£1,000Virgin Money M Plus current account2.02% (5.02% if switch to Virgin)Can only earn interest on the first £1,000 saved (additional joint account is allowed)
£3,000Claro app2%Only via Claro app

Best places to save more than £4,000

So you’ve filled up Virgin and possibly Claro too? I’d then look at Chase for the rest.

Amount savedAccountRateNotes
Up to £250,000Chase Bank1.5%Smartphone required

Best places for ongoing savings

If you are saving money every month then these accounts will beat the above accounts.

Max amount saved per monthAccountRateNotes
£150Natwest Digital Regular Saver3.04%Current account required. You can save up to £1,000 and get 3.04% interest. It’s a flexible account so you can take money out and pay it back in. There’s also no set end date like with many regular savers
£150RBS Digital Regular Saver3.04%You can have both the RBS and Natwest accounts, though you’ll need a current account with both
£200Nationwide Flex Regular Saver2.5%This lasts for 12 months and then closes. Current account required.

Andy’s podcast

Listen to Cash Chats, Andy’s twice-weekly podcast. Episodes every Tuesday and Friday.

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