Choose monthly or annual interest payments. Unlimited deposits and withdrawals. 24/7 access to your savings. Open and manage online. After 12 months the rate will revert to the underlying rate, currently 0.90% gross/AER variable. Post Office Online Saver is provided by Bank of Ireland UK. Must be UK resident. Must be aged 18 or older. FSCS protected
*Headline rate includes a guaranteed fixed bonus rate of 3.01% for the first 12 months (on balances up to £1 million), plus the standard variable rate which is currently 1.05%. After 12 months, you’ll continue to receive the standard variable rate (all rates are Gross/ AER. Annual interest payments. Unlimited deposits and withdrawals (daily limits apply). 24/7 access to your savings through the mobile app. Your eligible deposits held by a UK establishment of Barclays Bank UK PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management and Tesco Bank. Any total deposits you hold above the limit between these brands are unlikely to be covered
Interest rate tracks the Bank of England (BoE) Base Rate, plus 1.14% 12 month bonus
Why we like it
Unlimited deposits and withdrawals.Open and manage online or in app. Open in single or joint name (online only). FSCS Protected. £500,000 maximum deposit across all OakNorth accounts (£1,000,000 for joint accounts)
Which? Recommended Savings Provider. No notice period. Deposit from £100. Interest paid monthly or annually. Apply in minutes. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the FSCS
£500 bonus to boost your savings if you receive a residential purchase mortgage offer from Leeds Building Society
Why we like it
The Home Deposit Saver lets you earn a competitive rate of interest whilst building up the deposit needed for your first or next home. Open and manage online. FSCS Protected. You can only pay in up to £500 in a single month. Withdrawals are limited to 1 each year. You can deposit up to £30,000 in total. Bonus eligibility criteria apply
The interest rate tracks the Bank of England (BoE) Base Rate+ 0.25% Spread. New customers only also receive a 0.23% 12 month bonus. Interest is calculated on the minimum daily balance and applied to the account on the first day of every subsequent month. Open and manage account online. Your eligible deposits are protected up to £120,000 by the Financial Services Compensation Scheme. The maximum deposit you may pay into any one OakNorth Account is £500,000. The maximum amount (excluding the interest) that you will be allowed to hold on deposit with OakNorth Bank across multiple accounts is also £500,000. Unlimited withdrawals, subject to 95 days notice. Available to individuals, aged 18 or over, who are UK residents
All funds deposited into the RCI Bank E-Volve Savings 14 Day Notice Account will be used to fund pure electric vehicles and charging facilities. Interest paid monthly or annually. Manage account online. UK-based support, seven days a week. Which? Recommended Savings Provider. Unlimited withdrawals subject to 14 days notice. Must be UK resident. Must be aged 18 or older. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Open in single or joint name (online only). FSCS Protected. £500,000 maximum deposit across all OakNorth accounts (£1,000,000 for joint accounts). No withdrawals permitted
By splitting your £100k over a number of accounts you could access the best interest available.
If you are looking to get the best return on your £100k through savings accounts, then bear in mind that you may have to pay tax on the interest you earn.
Basic rate tax payers can earn up to £1,000 in interest before being subject to tax. For higher rate tax payers, they can earn up to £500 tax-free interest in a savings account.
ISAs:
Instant access cash ISAs: These allow you to withdraw money whenever you need without paying a penalty, making them ideal for short term saving.
Fixed term ISAs: These require you to not withdraw your savings from your ISA for a prolonged period of time.
Instant Access:
An instant access savings account allows you to withdraw from your savings at any time. This allows you to remain flexible with your savings. However, it is important to bear in mind that in exchange for this flexibility you may earn less interest than other accounts available on the market. Therefore, if you are confident that you will not need your savings in the near future, an instant access account may not be the best account to split some of your £100,000 savings in.
Current Account:
It is not advisable to deposit your entire £100,000 savings into a current account, as they usually have a threshold over which they will not pay interest. But you could deposit a smaller amount and benefit from competitive interest. You could then deposit any remaining savings into another option.
Fixed Rate Bonds:
If you are prepared to tie up your savings for prolonged periods, you could explore fixed rate bonds. Fixed rate bonds offer some of the highest interest available, which is guaranteed for the life of the bond, provided that you do not make a withdrawal for the fixed term. Typically, the longer fixed rate bonds provide the higher rate of interest. The majority of fixed rate bonds tend to run between 1 and 5 years.
In the event you do want to withdraw your savings from a fixed rate bond, you will often have to give written notice and incur a penalty. Note that the penalty can sometimes be a number of days' worth of interest, which may reduce your savings considerably.
If you need access to your savings in the near future, but want to benefit from the higher interest of a fixed rate bond, you could take advantage of the shorter fixed rate bonds that banks have started to offer. These types of fixed rate bonds run between 6 and 18 months, but their interest rates are much lower than the longer bonds.
