New savings account launched that can earn you up to £250 extra cash – and the secret ones that can TRIPLE your interest

Credit: Bloomberg via Getty Images A NEW savings account has launched that pays up to £250 free cash – and it’s one of a number of accounts that could see you get a huge payout. Spring, a savings account provider, has launched a new Accelerated Saver account that pays 5% interest on balances up to £5,000. Savers who hold their cash with a regular high street bank could be missing out on free money because banks tend to pay much lower interest rates. Spring said that Brits are holding around £322bn in current accounts paying no interest at all. Sign up for the Money newsletter Thank you! Those savers are effectively losing money in real terms, as inflation means your cash can buy less – so if your money isn’t growing, it’s losing value. Inflation was 2.6% in the year to June, meaning prices typically rose by that much on average over the period. So, if you’re earning 5% interest, your money is comfortably growing well above inflation. Derek Sprawling, head of money at Spring, said: “By moving even a portion of those funds into a dedicated savings account, people can take a simple step towards making their money work harder.” The secret savings accounts There are a number of accounts on the market offering high interest rates up to triple what you’d get from a mainstream bank – but they often aren’t easy to find. Many of the biggest high street banks pay measly rates on their main savings accounts, but offer top rates on accounts hidden under different brand names. Most read in Money For example, NatWest has a digital savings brand called First Active, and its Instant Access Savings Account pays 4.5% interest on as little as £1. Meanwhile, its main NatWest Flexible Saver account pays just 1% interest on the first £25,000 saved. Barclays offers savings accounts through Tesco Bank, with its Internet Saver paying 4.21% interest, including a 3.16% bonus for the first year. Again, Barclays’ main Everyday Saver account pays just 1% interest. Lloyds Bank offers a paltry 0.75% interest on its easy-access account through its brand MBNA, but MBNA itself offers a one-year fixed rate bond paying 4.85% interest. And Santander pays 4.52% on its Simple Saver through its offshoot Cahoot, versus 2% on Santander’s own-branded Everyday Saver account. How to find the best rates If you’re looking to boost your cash savings, it’s a good idea to look beyond whoever you bank with and shop around. Many banks have a digital savings arm, but you may not be able to track them down without using a comparison site like MoneySuperMarket or Go Compare. Using these sites allows you to compare the best rates on the market across all providers and find the best account for you. If you’re not sure, you could also try asking your bank directly. They should be able to tell you what other brands they offer and what their best savings rates are. Make sure to stay proactive, as many accounts offer high bonus rates for the first year before dropping to much lower rates. It’s a good idea to set a reminder of the date your bonus ends and then consider shopping around to find a better deal. You can typically get a better deal by fixing your rate for a period of time, but beware these deals usually mean you can’t access your money during that period. So, if you may need access to the cash, you might be better off sticking with an easy-access account. Comment now