Best savings account in December paying bumper 7.85%

Savers are being urged to act quickly to secure interest rates as returns continue to decline month by month.

According to new research by Moneyfactscompare, savings are trending downward following the second Bank of England base rate cut this year.

Average one-year fixed bond rates have dropped to 4.24%, the lowest since June 2023, while longer-term fixed bonds now average 3.89%, their lowest point since March 2023.

However, some accounts are still paying rates of up to 8% AER.

Rachel Springall, finance expert at Moneyfacts, said: “Savers may be disappointed to see savings rates fall, but in positive news there has been a bit of life injected into the market as more providers enter the fray.

“Product choice now stands at its second highest level on our records and the variety of savings providers has reached a record high. These moves could instil a sense of optimism for savers who feel let down by the more familiar high street banks, as new challengers are more eager to attract deposits to fund their future lending.”

However, she noted: “The months ahead will be challenging for both providers to keep abreast of rate adjustments and for savers to move quickly to secure a new deal.”

According to Bank of England data, £252billion is currently sitting in UK current or savings accounts earning no interest whatsoever.

Ms Springall said: “It will be up to consumers to make time to move their hard-earned cash into an account which not just pays interest, but also provides a real return against the eroding impact of inflation, which is expected to stay above 2% for some time yet.”

Here is a list of the savings accounts offering the highest at the time of writing, according to Moneyfacts data.

Best easy-access savings accounts

Here are the top 10 easy-access savings accounts this week:

• Atom Bank – 4.85% AER / 4.75% gross
• Principality Building Society – 4.85% AER/ gross
• Monument Bank – 4.81% AER / 4.71% gross
• Ulster Bank – 4.75% AER / gross
• Chetwood Bank – 4.71% AER / 4.61% gross
• Earl Shilton BS – 4.70% AER / gross
• Close Brothers Savings – 4.70% AER / gross
• Secure Trust Bank 4.65% AER / 4.55% gross
• Family Building Society – 4.65% AER / gross
• Vanquis Bank – 4.65% AER/ gross.

Best regular savings accounts

Here are the top 10 regular savings accounts this week:

• Principality BS – 8% AER / 7.85% gross
• First direct – 7% AER/ gross
• The Co-operative Bank – 7% AER/gross
• Principality BS (Christmas Saver) – 7% AER/gross
• Nationwide BS – 6.50% AER/gross
• Vernon Building Society – 6.50% AER/ gross
• Lloyds Bank – 6.25% AER/gross
• NatWest – 6.17% AER / 6% gross
• Royal Bank of Scotland – 6.17% AER / 6% gross
• Market Harborough BS – 6% AER/gross.

Best fixed-rate savings accounts

Here the top three savings accounts with a one, two and three-year fixed rate this week:

One-year fixes:

• Al Rayan Bank – 4.80% Expected Rate
• Ziraat Bank – 4.80% AER / gross
• SmartSave – 4.77% AER / gross.

Two-year fixes:

• United Trust Bank – 4.61% AER/ gross
• Atom Bank – 4.60% AER/ gross
• Bank of Ceylon (UK) (Raisin UK) 4.52% AER/gross.

Three-year fixes:

• Al Rayan Bank – 4.60% Expected Rate
• Atom Bank – 4.60% AER/gross
• GB Bank (Prosper) – 4.60% AER/ gross.

Best Cash ISAs

Here are the top 10 easy access cash ISAsthis week:

• Plum – 5.18% AER / 5.11% gross
• Moneybox – 5.17% AER / gross
• Trading 212 – 4.90% AER / 4.78% gross
• Principality BS – 4.85% AER / gross
• Monument Bank – 4.76% AER / 4.66% gross
• West Brom BS – 4.75% AER/ gross
• Chip – 4.58% AER / gross
• Chorley Building Society – 4.55% AER / gross
• Leeds BS – 4.55% AER/ gross
• Loughborough BS 4.55% AER / gross

Here are the top 10 Cash ISAs with a one-year fixed rate this week:

• Castle Trust Bank – 4.52% AER / gross
• Secure Trust Bank – 4.51% AER / gross
• Hampshire Trust Bank – 4.50% AER / gross
• Shawbrook Bank – 4.49% AER / gross
• Close Brothers Savings – 4.49% AER / gross
• Cynergy Bank – 4.48% AER / gross
• Kent Reliance – 4.48% AER / gross
• Virgin Money – 4.46% AER / gross
• Charter Savings Bank – 4.45% AER / gross
• UBL UK – 4.41% AER / gross.