Customers with some of the biggest banks have been told an easy way they can make some extra cash. Money experts have listed their best bank accounts based on interest rates.
It comes as households wanting to make extra money have been encouraged to shop around for the best interest rates and make their money grow more quickly. The team at Martin Lewis’ Money Saving Experts revealed the best offers currently available from well-known banks.
These are: Virgin Money, Leeds Building Society and Marcus. The banks are offering 4.51%, 4.35% and 4.3% rates respectively. It means a customer with one of the major banks could join Virgin Money and make £225 in a year in interest if they put in £5,000 into the account.
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MSE also named some lesser-known accounts from smaller and online banks. These included Plum (5.01%), Moneybox (5%), Trading 212 (4.9%) and Monument (4.76%).
MSE said: “Unusually, top easy-access cash ISAs currently pay more than top easy-access savings – so even if you don’t need the tax benefits of an ISA, you may want to opt for one anyway while rates are competitive. App-only Plum pays the top easy-access rate at 5.01%, though that includes a 12-month variable bonus of 1.22% and you only get 3.79% if you transfer in.
“The rate also falls to just 2.5% if you withdraw more than three times a year. Alternatively, Trading212 pays less at 4.9% but allows unlimited withdrawals, plus it pays the full rate on transfers in. It’s also a flexible ISA, meaning you can replace any cash you withdraw without it using up your annual ISA allowance.
“Prefer an established name? You’ll need to sacrifice on rate if you want a big name, as top-payer Virgin Money pays considerably lower at 4.51% and also limits you to just three penalty-free withdrawals a year.”