November's savings round-up & news - Be Clever With Your Cash

There was an expectation this week that the Bank of England would increase the base interest rate from 0.1% to 0.25%. Well, that expectation was wrong and the rate stayed at the record low. But there’s a sense it’ll happen sooner rather than later, and then gradually reach 1% by late 2022.

So what would that mean for savings? Eventually we’d see a boost to the rates offered on accounts, but it won’t be instant. The banks are much, much faster at hiking rates on mortgages than they are on passing it on to savers.

I’d expect some will act faster though, espcially the handful of apps and Fintech start-ups using interest as an incentive to new customers up their rates to remain competitive.

But the big thing for me right now is I wouldn’t fix long-term. Rates aren’t great right now, so you’re locking in on those poor rates. And if rates to increase across the board you won’t be able to change for a better deal.

Of course, there’s every chance the rates won’t improve! So then you’d have missed out on a little boost in the short term. But I do think that difference is relatively marginal that it won’t make much difference – especially on smaller balances and when compared to Premium Bonds. However it’s really up to you and what you’re most comfortable.

New 2% regular saver

TSB has launched a new 2% regular saver for account holders. This is double what you’ll get a most other places – but you’re limited to just £125 a month.

That’s a small monthly deposit, and even a 1% difference on that amount won’t add up to much over a year. You’ll earn £16.20 in interest, versus £8.11 in a 1% account.

I don’t think it’s worth opening a TSB current account just to get this account, but if you already have one then there’s no harm stashing cash here on a monthly basis.

Cambridge BS offers 5% to existing customers

Another regular saver account here, this time for people who have been with Cambridge Building Society for at least three years. You’ll be able to open an account offering 5% with a maximum monthly deposit of £250.

If you’ve been there for at lest a year you’ll get a rate of 3%.

The best savings accounts

Check out our list of the highest paying regular, easy-access, fixed and ethical savings accounts

Green Savings Bond released

We finally saw the NS&I Green Savings Bonds made available. However, the rate for these three-year fixed bonds is really poor. Just 0.65%, which is less than the best easy-access account. And as mentioned above, if interest rates do increase then the alternatives will get better. Here’s my full analysis.

So if you are thinking of ethical savings solutions, where should you put your money? Building societies are good bets, and Sharia complliant accounts will align some ethical concerns. Check out my regularly updated list of the best savings accounts for the latest rates.

Premium Bonds turn 65

Sticking with NS&I and this week saw the 65th anniversary of Premium Bonds. Back in 1957 the top prize was £1,000. Now it’s at £1million.

I picked up another win this month, though just £25. Now this was the second prize from the second deposit I made in June. That means it’s beaten the 0.6% interest I’d have made from the top easy access account, and it’s done it in just six months.

For the bonds I bought at the end of January, my return so far is even better at 1%. There are two more draws to go before the first year is up, so it could get even higher!

Here’s more on Premium Bonds.

Claro is iOS only

Last month I told you about a new app based savings account offering 2% AER. Though you can only save £3,000 in the account, it’s still a best buy. However, I didn’t realise it’s iOS only. So if you have an Android phone you won’t be ale to access it

Where to put your savings in November 2021

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 £3,000

The best option for the first £3k is with the Claro app, but this is just for Apple devices. If you’re on Android then skip to the next section with the Virgin Money and Club Lloyds accounts.

Amount saved	Account	Rate	Notes
£1,000 to £3,000	Claro app	2%	Only via Claro app (iOS only)

Best places to save £3,001 to £9,000

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

Amount saved	Account	Rate	Notes
£1,000	Virgin Money M Plus current account	2.02%	Can only earn interest on the first £1,000 saved (multiple accounts are allowed)
£3,000	Claro app	2%	Only via Claro app
Up to £5,000	Club Lloyds current account	0.6% to 1.5%	Two direct debits are required to get the interest on balances up to £5,000 You’ll also get a choice of free cinema tickets or movie rentals. £100 bank switching bonus until 19 October 2021

Best place to save £10,000

As long as you can lock the money away for at least six months then the bonus from Raisin is worth grabbing.

Amount saved	Account	Rate	Notes
£10,000	Aldermore via Raisin 6 months fix	0.8%	If you’re new to Raisin and put in £10,000 for at least six months you’ll get a £50 bonus on top

Best places to save between £10,001 and £19,000

For larger sums, I’d put £10k in Aldermore for six months to get the Raisin bonus then get those better paying easy access accounts.

For the next £5,000 beyond this you can look at that Club Lloyds account again.

Amount saved	Account	Rate	Notes
£10,000	Aldermore via Raisin 6 months fixed	0.86%	If you’re new to Raisin and put in £10,000 for at least six months you’ll get a £50 bonus on top
Up to £3,000	Claro app	2%	Only via Claro app
£1,000	Virgin Money M Plus current account	2.02%	Can only earn interest on the first £1,000 saved
Up to £5,000	Club Lloyds current account	0.6% to 1.5%	Two direct debits are required to get the interest on balances up to £5,000 You’ll also get a choice of free cinema tickets or movie rentals. £100 bank switching bonus until 19 October 2021

Best places to save more than £19,000

Finally for up to £64,000 in savings I’d swap the Club Lloyds account for Premium Bonds.

Amount saved	Account	Rate	Notes
£10,000	Investec via Raisin 32 days notice	0.8%	If you’re new to Raisin and put in £10,000 for at least six months you’ll get a £50 bonus on top
Up to £3,000	Claro app	2%	Only via Claro app
£1,000	Virgin Money M Plus current account	2.02%	Can only earn interest on the first £1,000 saved
Between £5,000 and £50,000	Premium bonds	1%*	Once you have £5,000 in Premium Bonds it should win more than the best easy-access account (currently 0.66%) Once you’ve got at least £10,000 in Premium Bonds your average win rate will probably be better than the Club Lloyds account (average 0.78% on £5k)