Best ‘competitive’ savings accounts of the week as interest rates rise

Bank of England increases interest rates to 5.25%

Experts are sharing the best savings accounts with the highest interest rates in the UK for the week beginning August 21, 2023.

Analysts from Moneyfacts.co.uk have compiled a round-up of the top products from banks and building societies.

One of the accounts highlighted in this list is providing savers with a favourable rate of 4.90 percent.

Savings accounts have received multiple boosts in recent years thanks to the Bank of England raising the base rate.

This has been passed onto savers and the base rate is currently sitting at 5.25 percent, with an expectation it could go higher.

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According to Moneyfacts, these are the three top savings accounts Britons should consider this week:

  • Beehive Money – Bonus Saver Account – 4.90 percent interest rate
  • Oxbury Bank – Personal Easy Access Account (Issue 1) – 4.75 percent gross / 4.85 percent AER payable monthly
  • Chip – Chip Instant Access Account – 4.74 percent gross / 4.84 percent AER payable monthly.

Each account has no notice period but different minimum operating balances depending on the product.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, broke down what the account with the top interest rate offers savers.

She explained: “Beehive Money has increased its Bonus Saver Account rate this week, which now pays 4.90 percent.

“The account grabs a position towards the top of its sector and may attract savers who have £1,000 to invest.

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“The account does include an introductory bonus rate of 2.25 percent which runs until August 31, 2024, so a review of the account before this expires would be wise.”

The savings expert also highlighted the benefits of Britons taking advantage of Chip’s savings account.

Ms Springall added: “Chip has increased the rate on its Instant Access powered by ClearBank product this week to 4.74 percent gross, enhancing its position in the easy access sector.

“Savers searching for a flexible savings account with a competitive rate may find this deal enticing as it allows unlimited withdrawals.

“(They) should be aware that they need to hold a Chip subscription (for which both free and paid options are available.”

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