A: Although inflation has now fallen to the lowest level in three years – 2.2%, basic rate taxpayers need to be earning an interest rate of at least 2.76 to gain any benefit on their instant access savings.
There are currently only two savings accounts on the market offering over this rate and that’s the AA Internet Extra Account, where you earn 2.8% APR, with a 2.3% bonus after 12 months, and the Natwest e-savings account, where you can earn 2.85% APR, with a 1.81% bonus after 12 months.
For both you only need £1 to open the account and can make as many withdrawals online as you like. Switch now!
Andrea Ventress, money expert
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