Is Bank and Building Society Interest Rate Advice Viable?

Giving regulated financial advice means we understand the full financial position, needs, risk profile, tolerance to losses and requirements of you, the client.  We must then complete the whole market research, compare and write a full report based upon your circumstances to give you the answers.

We are liable for, currently opened (for life) for the advice that we give as we are expected to know our clients , their needs and offer both affordable, suitable, and understandable solutions.

Reality of Cash Rates and Inflation

• Inflation in the UK currently stands at 3.8% (for October 2025). 
• This means your interest rate must at least outperform inflation or your money is devaluing.

According to moneyfacts.co.uk today, the best rates are as follows:

• Best Easy Access savings AER 4.51% pa.  After £500 Tax Free Savings Allowance, this means net works after income taxes of
• 20% Basic Rate Taxpayers = 3.61%.
• 40% Higher Rate Taxpayers = 2.70%.
• 45% Additional Rate Taxpayers = 2.48%.
• All net returns are below inflation, so your spending power is devaluing, and you should only invest to get tax free interest up to £500.
• Best 1 year Fixed Rate Bond 4.47% pa.  After £500 Tax Free Savings Allowance, this means net works after income taxes of
• 20% Basic Rate Taxpayers = 3.57%.
• 40% Higher Rate Taxpayers = 2.68%.
• 45% Additional Rate Taxpayers = 2.46%.
• All net returns are below inflation, so your spending power is devaluing, and you should only invest to get tax free interest up to £500.
• Best Easy Access Cash ISA 4.53%pa tax free with returns above inflation.

Getting Value for Money Advice

We see little point in you paying us to find the best cash rate.  We may find you a rate of say 1% pa more than what you are getting but with income taxes (where applicable) and our fee for a full written advice report, you may be even worse off. 

This is why we suggest you save your money on fees and search the market yourself.  There are many online (and weekend newspaper financial sections) that provide lists and comparisons of the best cash rates, and you should use those resources.  Be careful of the ‘small print’:

• Is interest added daily, monthly, or yearly?
• E.g., 0.45% monthly (12 x 0.45% monthly interest rate additions) is better than 6% annually as 0.45% compounded over 12 months is 6.96% AER.
• Is there a limit on the maximums and minimums you must save?
• Are there penalties or loss of interest for early withdrawals?

Please note for Gold and Platinum Money MOT service clients, we will conduct cash-based research for you at no additional cost.

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