Brits told to ‘consider goals for 2025’ as 8% interest rates on offer

Savers have benefited in recent years from the Bank of England’s decision to raise the base rate to as high as 5.25 per cent. The central bank’s Monetary Policy Committee (MPC) has voted to hike the rate as part of its efforts to rein in inflation.

With the consumer price index (CPI) falling near to the Bank’s desired target of two per cent, the MPC has voted to slash the base rate to 4.75 per cent. However, committee members have failed to vote on additional cuts in recent months.

Despite this, economists are expecting further action from the Bank of England in 2025 which could impact the savings interest rates on offer to bank customers later in the year.

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Best regular savings accounts

Here is a list of the best regular savings accounts currently on offer for the week beginning January 1, 2025:

• Principality BS – Eight per cent AER / 7.85 per cent Gross
• The Co-operative Bank – Seven per cent AER/Gross
• Principality BS – Seven per cent AER/Gross
• Nationwide BS – 6.50 per cent AER/Gross
• NatWest – 6.17 per cent AER / Six per cent Gross
• Royal Bank of Scotland – 6.17 per cent AER / Six per cent Gross
• Melton BS – Six per cent AER/Gross
• West Brom BS – Six per cent AER/Gross
• Market Harborough BS – Six per cent AER/Gross
• TSB – Six per cent AER/Gross.

Best fixed-rate savings account

Here is a list of the best savings accounts on offer with a one-year fixed-rate interest rate attached for the week beginning January 6, 2025:

• Vida Savings – 4.77 per cent AER / Gross
• SmartSave – 4.76 per cent AER / Gross
• Al Rayan Bank – 4.75 per cent AER / Gross
• Habib Bank Zurich plc – 4.75 per cent AER / Gross
• Habib Bank Zurich plc – 4.75 per cent AER / Gross
• Close Brothers Savings – 4.75 per cent AER / Gross
• Zenith Bank (UK) Ltd – 4.72 per cent AER / Gross
• Oxbury Bank – 4.70 per cent AER / Gross
• BACB – 4.70 per cent AER / Gross
• Ahli United Bank (UK) plc – 4.67 per cent AER / Gross.

Best cash ISAs

Here is a full list of the best cash ISAs with a one-year fixed interest rate attached currently on offer for the week beginning January 6, 2025:

• Shawbrook Bank – 4.53 per cent AER / Gross
• Virgin Money – 4.52 per cent AER / Gross
• Castle Trust Bank – 4.50 per cent AER / Gross
• Hodge Bank – 4.49 per cent AER / Gross
• Charter Savings Bank – 4.49 per cent AER / Gross
• Close Brothers Savings – 4.49 per cent AER / Gross
• Kent Reliance – 4.48 per cent AER / Gross
• Hampshire Trust Bank – 4.46 per cent AER / Gross
• Castle Trust Bank – 4.46 per cent AER / Gross
• Cynergy Bank – 4.45 per cent AER / Gross
• Aldermore – 4.45 per cent AER / Gross

Here is a full list of the best cash ISAs with a variable interest rate attached currently on offer for the week beginning January 6, 2025:

• Moneybox – Five per cent AER / Gross
• Plum – 4.93 per cent – AER / 4.86 per cent Gross
• Trading 212 – 4.90 per cent AER / 4.78 per cent Gross
• Monument Bank – 4.76 per cent AER / 4.66 per cent Gross
• Mansfield BS – 4.75 per cent AER / Gross
• West Brom BS – 4.60 per cent AER / Gross
• Vanquis Bank – 4.60 per cent AER / Gross
• Tipton & Coseley BS – 4.60 per cent AER / Gross
• Chip – 4.58 per cent AER / 4.49 per cent Gross
• Zopa – 4.55 per cent AER / 4.45 per cent Gross

Best easy access savings accounts

Here is a full list of the best easy access savings accounts without a bonus attached for the week beginning January 6, 2025:

• Atom Bank – 4.85 per cent AER / 4.75 per cent Gross
• Gatehouse Bank – 4.75 per cent AER / Gross
• cahoot – 4.75 per cent AER / Gross
• Ulster Bank – 4.75 per cent AER / Gross
• Chetwood Bank – 4.71 per cent AER / 4.61 per cent Gross
• Secure Trust Bank – 4.65 per cent AER / 4.55 per cent Gross
• West Brom BS – 4.65 per cent AER / Gross
• Family Building Society – 4.65 per cent AER / Gross
• Buckinghamshire BS – 4.60 per cent AER / Gross
• The Co-Operative Bank – 4.59 per cent AER / Gross.

Here is a full list of the best easy access accounts with a bonus attached for the week beginning January 6, 2025:

• Chase – Five per cent AER / 4.89 per cent Gross
• GB Bank – 4.86 per cent AER / 4.75 per cent Gross
• Sidekick Money – 4.75 per cent AER / 4.64 per cent Gross
• Chip – 4.72 per cent AER / 4.62 per cent Gross
• Principality BS – 4.55 per cent AER / Gross
• Cynergy Bank – 4.50 per cent AER / Gross
• Nottingham BS – 4.50 per cent AER / Gross
• Skipton BS – 4.40 per cent AER / per cent Gross
• Marcus by Goldman Sachs® – 4.30 per cent AER / 4.22 per cent Gross
• SAGA – 4.30 per cent AER / 4.22 per cent Gross.

LATEST DEVELOPMENTS:

Banks and building societies have been responding to changes in the base rate from the Bank of England

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Rachel Springall, a finance expert at Moneyfactscompare.co.uk, shared: “Savers looking across the top rate tables will be disappointed to see some reductions to market-leading one-year fixed bonds week-on-week.

“However, there is still a plethora of competitive bonds on sale to entice savers looking to secure a guaranteed return on their cash. It is largely expected for interest rates to come down this year, so fixed rate bonds may be a popular choice.”

“As many of us return to a full working week, it’s wise to take a moment to consider any savings goals for 2025. Now is the perfect time to start saving a little bit every month in a flexible pot for emergencies. There are also regular savings accounts out there which instil the savings habit.

“Typically, this time of year savers will start to see accounts launched which are designed to help them save a pot ahead of Christmas, which are incredibly useful. The start of the year is also a great time to review any existing savers accounts and switch if the return is poor compared to the top rates.”