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Fixed savings rates reach 5% for the first time since 2024 - should you open an account?
['Sam Bromley', 'Money', 'Consumer Guides Writer']
Money Articles | Mail Online
These savings accounts aren't tax-free Isas, so any interest you earn over your personal savings allowance will be taxed.
Investec is a large investment services provider but also offers cash savingsIsas – or individual savings accounts – let you save up to £20,000 a year tax free and rates on these are also strong.
You can get a higher Isa rate if you're willing to fix, with RCI Bank offering a two-year fix at 4.80 per cent.
Cash returns are at their highest in over a yearThe rates scrutineer Moneyfacts says that savings rates across all savings accounts – including easy-access accounts and Isas – sit at 3.59 per cent.
Watch out for tax chargesRemember that earnings within savings accounts that have no Isa wrapper are taxable.