I’m a 23-year-old male, working as a Software Engineer and currently making 30k. I have about 8k saved in a TSB eSavings account with a low interest rate of 1.5%. I’ve been advised to find a higher-rate account. I live with my parents and can save about £1500 each month.
I’m considering online banks like Monzo and Starling for their free international withdrawals, but my main goal is finding the best savings account. Are these good options, or is there a better way to invest my money? I also have a Help to Buy ISA that I contribute £200 to each month.
I love the chip bank instant access feature! It’s so convenient to have unlimited withdrawals and deposits, and the best part is that I can earn about 5% interest. I love how withdrawals and deposits happen instantly.
Based on my research, I would recommend opening a high-yield savings account with either Nationwide or Marcus by Goldman Sachs. Nationwide’s FlexDirect account currently offers a 5% interest rate on balances up to £1,500 for the first 12 months, which would be a significant improvement over your current 1.5% rate. Marcus by Goldman Sachs also has a consistently competitive online savings account with a 1.50% APY, which is still higher than your current TSB account. While Monzo and Starling have great mobile banking features, including free international withdrawals, their savings account rates are not as high as the options I’ve mentioned. Since your main goal is to maximize the interest earned on your savings, I believe Nationwide or Marcus would be the better choice. You could also consider opening multiple high-yield accounts to diversify your savings. And continuing to contribute to your Help to Buy ISA is a smart move as well. With your high monthly savings rate, you have a great opportunity to grow your money quickly in the right high-interest account.