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.
June’s savings update video
June savings news
Inflation hits 1.5%
It’s bad news for savers as the latest inflation rate more than doubled from 0.7% to 1.5%. This was largely down to increased costs for fuel – bringing up prices on home heating and petrol.
There were also increases to the prices for clothing and footwear based on 12 months previously.
This high rate means that very few savings accounts will beat inflation this month, with only one regular saver and two current accounts offering interest above 1.5%.
Easy access and fixed savings rates began to increase
Though there’s no sign that the Bank of England will increase interest rates it does look unlikely we’ll see negative interest rates. And that’s perhaps why a few banks have started to offer higher interest rates.
Last month the best easy-access account increased from 0.4% to 0.45%, and now it’s sitting at 0.5%. The best 1-year fix at the start of May was 0.7%, and by the end of the month you could nab 0.9%, though the best at the time of writing is 0.86%.
It’s good news, but also largely irrelevant if you are putting your cash in the best paying accounts such as Virgin Money’s M Plus account, the Chip+1 app or Premium Bonds.
Where to put your savings in June 2021
Make sure you check for updates in my regularly updated best buy article, but right now I’d look at the following:
Virgin Money M Plus current account (2.02%)
You can only earn this interest on the first £1,000 saved but you can open multiple accounts. In theory there’s no limit to how many you can have though Virgin has the right to not offer you additional accounts. You might also be better off focusing on additional reward current accounts which will earn you more money.
A good bet for under £2,000. Above this you’ll have to pay a fee to get the interest on balances up to £10,000. That doesn’t rule it out but it does mean you have to be careful you don’t lose money on lower balances. Here’s my full review.
Premium bonds don’t guarantee winnings but are another decent option to consider for larger sums of cash.
Ecology Building Society regular saver (0.8%)
Seeing as there’s not a huge difference between this ethical savings account and the next best regular savers I’d personally vote in favour of an account where I know my money won’t be lent to businesses that don’t agree with my principles.
Listen to Cash Chats, Andy’s twice-weekly podcast. Episodes every Tuesday and Friday.