7.50% Savings, £745k Compounding and Stocks to Watch

Here’s your 5-minute weekly June investing brief — crafted to help you save smarter, invest better, and grow long-term wealth👇

💸 Top High‑Interest Accounts (June 2025)

Whether you're saving for an emergency fund or just want your cash to work harder, these are the best UK savings accounts right now — no gimmicks, just high interest.

💼 Easy Access

• Chase Bank – 5.00% AER
  Includes a linked current account. Great app and handy round-up features.

• Atom Bank – 4.75% AER
  App-only, interest paid monthly. No withdrawal restrictions.

• Snoop – 4.60% AER
  Flexible access with a clean user interface. Worthwhile for casual savers.

• Cahoot (by Santander) – 4.55% AER
  Online only, easy to open, no penalties for accessing your money.

🔐 Fixed-Term (1-Year Fix)

• Marcus by Goldman Sachs – 4.55% AER
  Simple, trusted platform. Interest paid monthly or annually.

• Cynergy Bank – 4.52% AER
  FSCS protected, solid customer reviews, good rate lock-in.

• Vanquis Bank – 4.50% AER
  Funds are locked in for a full year — no withdrawals allowed.

• GB Bank – 4.50% AER
  UK challenger bank offering competitive returns for savers.

📈 Regular Savings

• Principality Building Society – 7.50% AER
  Fixed for 6 months. Save up to £200/month. Early closure allowed without penalty.

• Zopa (via Biscuit) – 7.10% AER
  Requires opening their new “Biscuit” current account, which also offers cashback perks.

• First Direct – 7.00% AER
  You’ll need their current account. Save up to £300/month over 12 months.

• Co-operative Bank – 7.00% AER
  Open to new and existing current account customers. 12-month fixed term.

• Nationwide – 6.50% AER
  “Flex Regular Saver” — no withdrawals allowed, 12-month term, max £200/month.

• Melton Building Society – 6.50% AER
  Regional account with strong terms if you’re eligible.

🧠 Smart Saving Tips

• Use easy access accounts for your emergency fund or short-term goals.

• Lock in a fixed term if you won’t need the cash for a year.

• Take advantage of regular savers by drip-feeding from your easy-access pot each month.

• Many top accounts require a linked current account — make sure you check before applying.

❗Don’t forget your £20,000 Cash ISA allowance for 2025/2026

📈 Stock Standouts (June)

Top UK Performers

• Rolls‑Royce: +12.8% (Aerospace)
  Gains driven by stronger air travel demand and advances in sustainable aviation tech.

• BT Group: +7.2% (Telecoms)
  Boosted by fiber broadband rollout and growth in enterprise services.

• easyJet: +6.9% (Travel)
  Benefit from rising summer bookings as COVID restrictions ease.

Global Movers

• NVIDIA: +18.4%
  Leading in GPUs and AI computing with strong data center and gaming demand.

• TSMC: +12.1%
  Key semiconductor supplier benefiting from chip shortages and tech demand.

• Meta: +9.7%
  Recovery fueled by ad revenue growth and metaverse investment.

💡 These stocks are significant components of major ETFs like VWRL (FTSE All-World), VUSA (S&P 500), and IWDA (MSCI World), meaning their performance can have a notable impact on broad market index funds popular with UK investors.

🇬🇧 UK Economy & Market Snapshot

• Bank of England Base Rate: 4.25% (held steady this month)

• Inflation Rate: 3.4% (down slightly from 3.5% in April), indicating gradual easing of price pressures

• 2-Year Fixed Mortgage Rate: Around 5.12%, reflecting continued higher borrowing costs amid rate hikes

• Easy-Access Savings Average: Approximately 4.7% and trending upward, offering attractive returns for savers

🧠 Takeaway:
The combination of steady interest rates, falling inflation, and rising savings rates presents a rare win for savers. While borrowing costs remain high, those with cash savings can benefit from improved returns, making it a good time to let your money work harder as the economy stabilizes.

💷 Smart Money Moves (This Week)

• ✅ Open a fixed-term savings account if you won’t need immediate access — rates around 4.55% are rare in today’s market. Locking in a higher rate can boost your returns compared to easy-access accounts.

• ✅ Re-balance your investment portfolio — with the first half of the year behind us, now’s a good time to review your asset allocation. This helps maintain your desired risk level and take advantage of market shifts.

• ✅ Review your Lifetime ISA (LISA) before the new tax year — check your contributions and consider topping up to maximize the government bonus before the April deadline.

🧠 Takeaway:
Small adjustments like these can create big compounding effects over time, helping your money grow more efficiently.

💹 The Power of Compounding

Consistent investing over time can quietly build substantial wealth. For example:

• Investing £200 per month at an average annual return of 8% over 40 years can grow to approximately £745,000. Without compounding, the same amount saved monthly would total just £96,000.

• Even smaller contributions, like £50 per month, can accumulate to over £186,000 in the same period. Without compounding, this would be only £24,000.

The key is to stay disciplined — regular contributions through dollar-cost averaging help smooth out market volatility and reduce the risk of poor timing.

Additionally, annual portfolio re-balancing ensures your investment mix stays aligned with your goals and risk tolerance, helping to optimise long-term growth.

Let’s build wealth — slowly, smartly, and consistently. If this brief helped you, feel free to forward it to a friend who might find it useful. And if you haven’t subscribed yet, join us for more practical investing insights every week.

Thanks for reading — here’s to building growth!
Steady as we grow,
Harry