This bank has a great offer for customers with a huge 7.1% interest rate on its savings account. You won’t want to miss out on this offer and it’s rare to see such a good deal.
Keeping an eye on your accounts and their savings rates is an important part of making sure your money is in the best place to maximize your wealth. You should be regularly browsing the market and checking how your account shapes up to others available. Zopa bank offers what it calls a “biscuit” bank account and it does seem like quite a sweet deal. If you open a savings account with them, you can get a 7.10% AER savings rate.
You can deposit £300 a month, assuming this rate stays the same for the next 12 months, you could earn up to £137 a year.
It says: “Built to help your money do more, Biscuit is a free-to-open current account that gives you value where it matters most — your bills, your balance and your savings.
“Simple to open, easy to manage and designed to make everyday banking much sweeter.”
AER stands for annual equivalent rate, your bank pays you interest on a monthly basis, but AER shows you the rate you’d get if this monthly interest was compounded and paid once a year instead.
A savings account is simply a place for you to put your money and earn some interest so making sure you have the best rate is crucial to growing your savings.
Savings interest will be paid to you tax-free and most savers won’t pay any tax on the interest they earn.
Basic-rate taxpayers can earn £1,000 a year in interest tax-free, and higher-rate taxpayers £500, because of the personal savings allowance, says Money Saving Expert.
It adds: “As rates have risen, you’d need around £20,000 in savings to reach this allowance, and soon have to pay tax, as a basic-rate taxpayer.
“If you’re nearing this limit, it’s worth considering a cash ISA, as interest on these is always tax-free (and doesn’t count towards your PSA).”
If you’re thinking about changing your savings account, make sure to compare rates across different banks.
