Trying to find a savings account with a higher interest rate than inflation, with unlimited withdrawals and no lock in period? Maybe not possible. Happy to consider some riskier ‘non-savings account’ options like peer to peer, or safer equity/bond options… (although feeling less keen on equities after the last couple of weeks!) Any help would be appreciated
The BoE’s target for inflation is 2%, with actual inflation currently about 1.8%
There is no easy access savings account that’s anywhere near 1.8%. There are some fixed term accounts close to 2% but you’d have to lock your money away for multiple years. 2% can be beaten by using Nationwide’s FlexDirect current account as a savings account (5%, but only for one year) and by using regular/monthly savings accounts (up to 2.75%), but these are limited to relatively small amounts of money (£2500 for FlexDirect and ~ £200-300/month for monthly savers).
For something a bit riskier, but arguably less risky than equity or other bond options, take a look at Dozen’s bonds (5%):
If you want to limit risk remember you don’t need keep it all in either equities or a regular savings account.
As an example you could keep 80% in a high yielding savings account and 20% in an equities fund and over time have a likely chance to keep up with or outperform inflation.
Thanks very much - will check that out!
If you want an easy approach I can recommend Wealthify the cautious plan is giving about 2% return for me. My plan is currently 52% gov bonds and 30% corporate bonds, and remaining cash/shares. Obviously they take a few pence for themselves for managing it. Ref link below
If you want to go for ETFs and want to do it yourself then try Freetrade they have both Bond and stock ETFs. See also T212 for more.
The only thing with Dozens is the 5% bonds are part of a bidding round, so previously a safe avg winning bid is about £500 earning you £25 for keeping it in for a year. So if you have more then there’s no guarantee you’ll get it.