Archive: MoneySavingExpert's Money Tips Email

Martin's golden rules for savers after UK rate freeze
Rule 1. Check your rates! If UNDER 5%-ish you're being diddled
Rule 2. Thinking about a fix? Open one now even if you don't pay in

Banks are likely making billions, from millions of people earning diddly-squat on savings. Yet it only takes a few minutes to turn this around. As Barry & Irene emailed: "Thanks MSE for this savings advice. We were making a paltry £30/mth interest, but after switching to three banks, we are making nearly £200/mth now."

And this is a crucial time to do it. Last week, against predictions, the Bank of England froze rather than increased interest rates - lowering market expectations of future UK rates. And that matters, especially for fixed-rate savings, as they're often set based on expectations, so we could see rates fall. That's why I've two quick rules...  

1. As the top easy-access accounts pay 5%-ish, that's the MINIMUM you should be earning. Easy-access accounts are bog-standard flexible savings where you can put money in and withdraw when you want. So at the worst your money should be in the best of these. As easy-access rates are variable, they tend to move in line with the Bank of England base rate (so monitor what yours pay). Full info & options in top easy-access savings, but in brief...

- Top rate: Leeds BS 5.1% (min £1,000).
- Top big name: NatWest Group's Ulster Bank at 4.91%* (min £10,000), Post Office 4.7% (min £1).
- Bank with Santander Edge? If so, you can get 7% easy access but only on up to £4,000.
- Top cash ISA: Coventry BS 4.9% (min £1) - see our Cash ISAs guide for if it's right for you (as it is for many more now).

2. Lock away up to £1,000,000 in total safety in NS&I's 6.2% one-year fix. A fix means you lock your money away (though top fixed cash ISAs give some access) in return for a guaranteed, unvarying interest rate. NS&I, formerly National Savings, has two huge best-buy 6.2% one-year fixed savings, with complex names: Guaranteed Growth & Income Bond - the links explain which is better for you. These beat every other fix, of any length.

As NS&I's state-owned, rather than the £85,000 savings safety protection other institutions have, every penny up to the max £1,000,000 depositable in these fixes is Treasury-protected. However, the interest is taxable, so if you've larger savings, look at cash ISAs too. NS&I's fixes mightn't be around long, so sooner is safer. You may want a shorter fix, or consider that with rates possibly peaking, locking away longer may be a winner. Full info & updated options in top fixed savings, but briefly as I write...

- 6mth fix: Hampshire Trust Bank 5.6% (min £1), Secure Trust Bank 5.6% (min £1,000).
- 9mth fix: Ahli United via Raisin 5.79% (min £1,000), Secure Trust Bank 5.75% (min £1,000).
- 2yr fix: Ford Money pays the top 6.05% rate (min £500).

• CAN YOU BOOST INTEREST FURTHER? Some specialised options in our Savings section pay even more:
  - 50% bonus for many on Universal Credit or Tax Credits. See Help to Save.
  - 25% bonus for first-time buyers aged 18 to 39. See Top Lifetime ISAs.
  - Earn up to 8% if you can save monthly. See Regular savings.
  - Prefer to invest? Higher returns, but more risk. See Stocks & shares ISAs.

New. Get nearly a year and a half's 'FREE' family annual travel, mobile and breakdown insurance worth £100s

This is all about packaged bank accounts, where you pay a monthly fee for your banking but they throw in high-end insurance. Yet mirroring the fee-free accounts above, a couple of accounts will also PAY YOU UP TO £200 to get them if you're not banking with them currently. This then covers off the monthly fee for well over a year - meaning for that time the insurance is free (and you could always cancel after, though it's actually still pretty cheap if you'd use it).

So while these are bank accounts, think of them as all-in-one insurance packages - and evaluate whether you'd be paying for the insurance cover anyway. If you would, these are usually far cheaper than buying the cover separately. To help, we've included links to the standalone cover in the table.

• Virgin is our usual top-pick packaged account. When these accounts don't have bonuses, it's worth noting the Virgin Money Club M account, which costs £12.50/mth and comes with family worldwide travel cover up to the age of 74, family mobile and gadget cover, and Green Flag roadside and home assistance. See Virgin Club M review.
  
  
• Packaged accounts were hideously mis-sold - some people can RECLAIM £1,000s. Actively choosing a packaged account for the right reasons is great. Yet over the years many were hard-sold them, told you had no option, told you could only get a mortgage if you opted for the account, or were 'upgraded' without consent. If so, you could be owed all the fees back. See our free Reclaim packaged bank accounts tool.
  
  As Kim emailed: "A big thank you to Martin and the team, as I managed to reclaim bank charges on my packaged account going back to 2009. I received a payment of just under £3,000 including interest, and it was so simple, took four weeks. Anyone who has/used to have a packaged bank account should take a look at this, you've nothing to lose!"