Saving is good as it not only secures your life financially in case of emergencies but your money also earns some returns albeit minimal. With inflation on the rise, however, you’ll need to be extra careful when choosing where to stash your money. Otherwise, you may end up losing money unless you beat inflation.
If you’re looking for the best savings accounts to beat inflation in the UK, below are some options you can take a closer look:
Santander Current Accounts
With Santander, you can earn up to 3% in interest if you have between £3,000 and £20,000 in your account. Other than the generous interest rate, the accounts also offer up to 3% cashback on household bills. You can also earn cashback on mobile, TV, internet, energy and even water bills. When used right, a Santander checking account can result in more or less £550 a year in interest.
TSB Classic Plus
Another checking account that offers generous interest rate is TSB Classic Plus where you can earn 5% interest for savings of £2,000 or less. Even better, you don’t need to switch accounts or open a direct debit account in order to open a TSB Classic Plus. You’ll just need to make sure not to exceed the £2,000 amount so you get to enjoy the 5% interest.
If you’d rather opt for an easy access account rather than a checking accounts. BM Savings is a good option to consider. With BM Savings, you can earn up to 1.5% AER while still enjoying unlimited withdrawals. Just make sure not to let your savings drop below the £1,000 mark or else your interest also drops. Also keep in mind that this kind of account can only be opened online.
If you don’t have a lot to save, you can stick with Tesco Bank which offers a relatively lower interest rate but is perfect for those who don’t have the £1,000 minimum most accounts require. With Tesco Bank, you only need £1 to open the account and you get to earn 1.35% AER while also enjoying unlimited withdrawals free of any penalties.Add to that the 0.6% bonus you earn on top of the interest rate for 12 months.