3pm on a Tuesday is the time to save!

by Rachel Wait on 05 May 2011  |  6 comments
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Recent research has revealed the most popular time to save!

What kind of saver are you? Do you save regularly each month? Do you only put a little aside when you can? Or do you rarely save at all?

Well, whatever type of saver you think you are, according to recent research by BM Savings, the nation as a whole are ‘lunch break’ savers when it comes to transferring money in and out of online savings accounts.

Typically, these transactions take place on a Monday between 12 and 1pm – the first chance many people get during the day after the weekend.

Thrifty Tuesdays

But when it comes to actually opening a new online savings account, the most popular time is between 3pm and 4pm on a Tuesday!

Indeed, Tuesday is the most popular day for opening a savings account in all regions apart from Northern Ireland and East Anglia, which both see higher activity on a Wednesday.

People living in the South West and Yorkshire and the Humber also prefer Wednesday and Tuesday equally.

As for timings, although most of the nation open accounts between 3 and 4pm, those in the East Midlands, the North and Wales are ‘brunch’ savers and prefer to open accounts between 10 and 11am, whereas in Greater London it tends to be between 2 and 3pm. Meanwhile, anyone living in the South West is more likely to be a ‘lunch time’ saver, and open a new account between 12 and 1pm.

So whichever category you fall into, if you’re after a new savings account, where should you look?

The top easy access savings accounts

If you prefer not to tie up your funds and you like to have a little flexibility about accessing your money, you’ll want to opt for an easy access savings account. So below, I’ve highlighted eight of the best easy access savings accounts on the market.

As you can see, the market-leading easy access savings account is the Nationwide MySave Online Plus which pays 3.05%. However, the drawback to this account is that you can only make one penalty-free withdrawal per year. Additional withdrawals incur a loss of bonus and a rate of 0.10% in the month of withdrawal.

What's more, because this account includes a bonus rate of 1.51% for 12 months, once that year is up, the interest rate is likely to drop and you’ll need to find a more competitive home for your savings.

In fact, you’ll notice that all but two of the savings accounts in the above table include bonus rates for 12 months. The Halifax Web Saver Reward account doesn't technically have a bonus, but the rate still falls to 0.25% after 12 months.

Similarly, the ING Savings Account doesn't have a bonus, but again the rate falls after a year. However, this is my favourite savings account because, unlike the Halifax account, the 3% interest rate offered by the ING account is fixed for a year – so unlike all of the other accounts mentioned above, you’ll have a guarantee that the rate won’t drop during the first year.

Of course, in theory, the interest rate on all the other accounts mentioned above could increase – but personally, I think in the current climate, that’s unlikely.

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Just be warned that once the 12 month period ends on the ING Savings Account, you’ll need to look for a new savings account, otherwise you’ll be stuck on a rate of 0.5%.

The best fixed rate bonds

If you’d prefer to lock up your money for a year or more, you can enjoy even higher interest rates with a fixed rate bond. Of course, if you decide to open one of these accounts, you won’t be able to access your savings for the term of the bond – so you need to think about this carefully.

Let’s take a look at some of the best fixed rate bonds on the market.

One year bonds

If you want to keep things simple and would prefer to only tie up your funds for one year, the market-leading one year fixed rate bond is the FirstSave 1 Year Fixed Rate Bond, offering an interest rate of 3.50% - so considerably better than that offered by easy access savings accounts. You’ll need at least £1,000 to open the account and it can be operated online.

Alternatively, the AA 1 Year Fixed Rate Savings Bond offers a slightly lower rate of 3.4% and you’ll only need £1 to open it. However, this account can only be operated by post.

Two year bonds

If you’re happy to tie up your funds for an additional year, the Principality BS 2 Year Fixed Rate Bond pays 4% and you’ll need a minimum investment of £500. So you can earn an extra 0.50% for locking up your money for one extra year.

Note, however, this account can only be operated in branch or by post.

Meanwhile, the Cheshire BS 2 Year Fixed Rate Bond pays a lightly lower rate of 3.95% with a minimum investment of £100. Again, you can only operate this account in branch or by post.

Three year bonds

For three year bonds, your best bet is the Secure Trust Bank Fixed Rate Bond Three Year Term paying 4.3%. You’ll need a deposit of at least £1,000 and it can be operated by phone or post.

Alternatively, the Principality BS 3 Year Fixed Rate Bond pays 4.26% and you’ll need a deposit of £500 or more. This account can only be operated by post or in branch.

Four and five year bonds

Personally, I would be reluctant to tie up my funds for as long as this, but if you are after a four year bond, you can earn 4.31% with the West Brom WeBSave 4 Year Fixed Bond. The term ends on 31.03.15 and you’ll need a deposit of £1,000 or more.

For five year bonds, your best choice will be the BM Savings Internet 5 Year Fixed Rate Bond paying a top rate of 5.05%. You’ll need a deposit of just £1.

So what are you waiting for? Get a new savings account today!

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