I came up with a few ideas for the title of this post – The Battle of the Banks, The Savings Smack Down but thought why limit myself to highlighting just one type of account or app when it could be a great place/resource to talk about all of the best options out there to help you manage your money.
Let’s take a look at the best bank accounts, savings apps, interest rates and cashback rewards for 2021
This post will be updated regularly with new deals and options
Best of Banking 2021
Best Savings Rates
Let’s be honest, there aren’t really any good savings rates at the moment, rates have been consistently low for a few years now and we’re not likely to see them jump up anytime soon but it’s worth looking around to see if you can at least be earning a little bit of interest.
Regular savings accounts usually require you to put some money away each month and then pay interest yearly. They offer higher rates but also have stricter terms such as not being able to save over a certain amount each month, having limited withdrawals and rates sometimes only last a year.
If you have an RBS or Natwest current account you can get a top rate of 3.04% with a linked regular savings account. You can only save a maximum of £50 and the rates are variable so you might not always get that % but they are some of the best on the market at the moment.
App Savings Accounts
Chip +1 – Chip+1 is the new savings account offering from the Chip app, it pays 1.25% on balances up to £5,000
Best Cashback Accounts
Co-Op Everyday Rewards – Opt-in at no cost and earn up to £5 a month but meeting certain criteria (pay in a minimum of £800 a month, stay in credit of within your arranged overdraft, log in once to either online or mobile banking in the month, stay opted in for paperless statements and pay at least 4 direct debits from the nominated account)
Santander 123 Lite – This account will give you 1-3% cashback on certain household bills (capped to £15 a month) for a £2 per month fee
Best Bank Account Switching Offers
HSBC Advance – Get £125 free when you open an account and switch within 30 days, move two standing orders/direct debits over and pay in £1,750+ a month. Once your account is open you can also get a 1% regular savings account that you can save up to £250 in per month.
First Direct – Get £100 free when you open an account, switch and pay in over £1000 within 3 months. As with the HSBC account above you will get access to a 1% regular savings account where you can save £250 each month.
Best for Budgeting
Starling – Starlings ‘Spaces’ feature are ideal for managing your sinking funds – they let you set individual goal amounts, personalise the space with an image and also have a handy feature to round up your spending and add the amount to a specific space.
HyperJar – HyperJar isn’t a bank account, it’s an app that allows you to split your money into ‘jars’ for easier budgeting and then you can then spend the money from the jars in person or online using the linked Mastercard
Best Apps for Automatic Saving
Chip – Chip is an app that connects to your regular bank account and uses AI to analyse your spending to see what it thinks you can reasonably afford to save. You can set yourself savings goals and withdraw your money at any time