Top three easy-access savings accounts which will pay you the most interest over the year

To help people decide on where best to put their savings right now the financial data company moneyfactscompare.co.uk has highlighted the top three highest paying easy access savings accounts

If you want to start your savings journey this month, these are the best paying savings accounts you can get right now.

With the new tax year starting, many may want to take a look at your finances and maybe start putting a bit more aside if you can. The Bank of England interest rate is currently at 5.25% and the rates paid by banks on savings products have risen with it. Interest on a savings account is the amount of money a bank will pay you for holding your cash with them.

However, it's very important to be aware that the bank's interest rate is predicted to drop this year which will see rates on savings products drop too. To help people decide on where best to put their savings right now the financial data company moneyfactscompare.co.uk has highlighted the top three highest paying easy access savings accounts.

The savings experts used the figures of £180 and £450 a month to calculate the interest you could make. These are the typical monthly amount saved by a UK household and the average according to the Office of National Statistics (ONS). The average figure sits higher due to the small number of households who are able to put much higher sums away each month.

Easy-access accounts generally allow you to withdraw money whenever you need it, although you may find some accounts restrict how many withdrawals you can make in a year. You can also save as little or as much as you want each month making them very flexible.

According to moneyfactscompare.co.uk, the top three paying easy-access savings accounts right now are Ulster Bank's Loyalty Saver, Post Office Money's online saver, and Cynergy Bank's online Easy Access Account. These pay an interest of 5.20%, 5.06%, and 5.01% respectively.

Both Cynergy and the Post Office allow you to open the account with just £1, while to get the rate at Ulster Bank you will need to deposit £5,000. Any less and you will only see an interest rate of just 2.25%. However, all the accounts highlighted have a variable rate - which means the interest offered can both rise and fall. This means the interest you make could be lower if the bank drops the rate.

Overall, Ulster Bank was found to make you the most money over one year with interest sitting at £61.28 for those saving £180 a month and £154.54 for those saving £450. The Post Office took second place with interest earnings sitting at £60,13 and £150.32. Finally, Cynergy Bank's interest earnings sat at £59.52 and £148.81.

Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk said: "Choosing the right account depends on how flexible savers wish to be with their cash withdrawals. No notice accounts may be the most appropriate option for many, as they allow savers to access their cash without prior notification, which may be helpful for any unplanned eventualities.

“Last month’s fall in CPI means that the vast majority of deals now beat inflation, leaving investors with plenty of choice to see real-terms returns on their cash. As the FCA continues its focus on Consumer Duty, it would be sensible for savers to consistently review options to ensure they’re being fairly rewarded for their deposits.” Before you sign up for a savings product, you should read the terms and conditions so you are fully aware of the rules behind the account.

Which easy-access accounts would pay you the most interest?

If you pay £180 into a savings account each month for an entire year you would have a cash pot of £2,160 at the end - this is without any interest being added. If you saved £450 a month for a year, you would have a cash pot of £5,400. So using those figures, these three accounts would earn you the most money:

Ulster Bank - Loyalty Saver - 5.20%

• Pay £180 a month - £2,221.82 (interest earned: £61.82)
• Pay £450 a month - £5,554.54 (interest earned: £154.54)

Post Office Money - Online Saver - 5.06%

• Pay £180 a month - £2,220.13 (interest earned: £60.13)
• Pay £450 a month - £5.550.32 (interest earned: £150.32)

Cynergy Bank - Online Easy Access Account - 5.01%

• Pay £180 a month - £2,219.52 (interest earned: £59.52)
• Pay £450 a month - £5,548.81 (interest earned: £148.81)