M&S Bank has launched a savings account paying 6 per cent – but to get that rate, you'll have to open a current account with the bank; then you'll be able to save up to £250 a month with the new deal.
"The no-fee M&S current account launched last May with a competitive overdraft tariff and no charges for overseas ATM withdrawals," says Andrew Hagger at the advice site Moneycomms.co.uk. "Paying the maximum £250 per month into the account will earn £78.31 net of 20 per cent tax after a year, and is only bettered by two competitors when compared with interest paid on a £3,000 current account balance."
The highest return comes from Nationwide's FlexDirect at £124.32, but that includes an introductory rate of 5 per cent, which slumps to just 1 per cent after the first 12 months.
TSB Classic Plus, in second position, also looks attractive if you are always in the black, paying 5 per cent on the first £2,000. However, the cost of authorised borrowing and debit card use abroad is among the most expensive, Mr Hagger warns.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies