The Ultimate UK Savings & Investing Account Tier List

The Ultimate UK Savings & Investing Account Tier List. Current Account, F tier. Pretty much the worst place you can put a significant amount of savings. Premium Bonds, B tier. Every pound you save up to 50k is entered into a monthly prize draw where you could win up to 1 million pounds. Your money won't go down but you're not guaranteed to win, so most people would earn more from a high interest savings account. Cash, F tier. They say cash is king but it's losing value with inflation every year. It's also pretty inconvenient to carry around. High interest savings account, A tier. Great for emergency funds and short-term savings, however you're unlikely to beat inflation over the long term. You'll also have to pay tax if you go over the personal savings allowance. Cash ISA, B tier. Allows you to save up to 20k per year and any interest is tax-free. Great for short-term savings, however most people won't earn enough interest to exceed the personal savings allowance so the tax benefits often go unused. Fixed-rate bonds, C tier. Allows you to lock your money away for a set period in return for a guaranteed interest rate. However, if a better rate becomes available or you need access to your money, you're usually stuck until the term ends. Innovative Finance ISA, D tier. Allows you to lend up to 20k per year through peer-to-peer lending platforms and earn tax-free interest. However, the higher risk and lower protection make it too risky and complicated for most people. Junior ISA, C tier. Allows you to invest up to 9k per year on your child's behalf and any growth is tax-free. Great way to build wealth for their future, but the money is locked away and they gain full access when they turn 18. Workplace pension, S tier. Allows you to save and invest for retirement while benefiting from employer contributions, tax relief and reducing your taxable income. Absolute no-brainer. Self-invested personal pension, A tier. Similar to a workplace pension, allows you to save and invest for retirement while receiving tax relief. However, you won't benefit from employer contributions and you generally can't access the money until your late 50s. Lifetime ISA, A tier. Pays you a 25% bonus on everything you save. So if you save the maximum 4,000 pounds per year, you get a free 1,000 pound bonus. However, you can only use this money to buy a first home worth under 450k or for retirement at 60 years old. Stocks and Shares ISA, S tier. Allows you to invest up to 20k per year and any interest or dividends you earn are completely tax-free. Genuinely one of the biggest cheat codes to building long-term wealth.