Banks have continued to up the rates on their savings accounts as they compete for business, offering some of the best deals savers have seen in years.
The Bank of England has also hiked its base rate to 5% as it continue to fights against sticky inflation, its highest level since 2008. An increase in rates is good news for savers, and although higher rates may take time to filter through, there are still some attractive options for cash savers right now.
Over the last few months, we have seen banks increase the interest rates on their savings accounts, and though they don’t beat inflation, they can be a good home for cash savings.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If you have cash savings – whether it’s your emergency fund or savings for a short-term goal – you can currently earn as much as 5% from an easy access account for up to £1,500 right now and as much as 7% from a regular savings account.
“Savers will need to act quickly to take advantage of the latest deals as some of the top savings’ rates have tumbled over the past month,” says Rachel Springall, finance expert at Moneyfacts.
“Inflation is predicted to come down to around 2% in 2024, and based on today’s top rates savers would be able to make a return on their cash,” says Springall.
“It is expected that variable interest rates will continue to improve due to competition and the consecutive base rate rises fuelling the market. Savers who have not checked their existing rate would be wise to do, as not every provider has passed on each single base rate rise.”
Below are the best savings accounts available for easy access, 12 and 24 months fixes.
All the banks we have mentioned are protected by the Financial Services Compensation Scheme, which protects up to £85,000 of your money should a bank or financial institution go bust.
This article is updated regularly using data from Defaqto.
This article may contain affiliate links – when you purchase through links on our site, we may earn a commission.
The best easy-access savings accounts
Easy access accounts aren’t the top rates, but they come with the freedom of letting you access your cash when you want without losing any interest. So, if you want flexibility, then an easy access account could be for you. These are the best easy-access savings accounts available now.
| ACCOUNT | AER | MINIMUM DEPOSIT | WHAT YOU NEED TO KNOW |
| Shawbrook Easy Access Account | 4.63% | £1,000 | Save up to £85,000. Open online. |
| Oxbury Personal Easy Access Account | 4.55% | £1,000 | Save up to £500,000. Open online. |
| Secure Trust Bank Easy Access Account | 4.55% | £1,000 | Save up to £85,000. Open online. |
| Kent Reliance Easy Access Account | 4.53% | £1,000 | Save up to £1million. Open online or in branch. |
*When you sign up via this link, we may earn an affiliate commission from this deal.
Best notice savings accounts
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| Vanquis Bank 90 Day Notice Saver | 5.35% | £1,000 | Open online |
| Bank of London and The Middle East 90 Days Notice Account | 5.35% | £10,000 | Open online |
| DF Capital 90 Day Notice Account | 5.05% | £1,000 | Open online |
Best savings for existing customers
| First Direct Regular Saver | 7% (fixed for 12 months) | £25 | Open the account online. If you're not already a First Direct current account holder you can get a £175 switching bonus. Maximum deposit is £300 per month. |
| Lloyds Bank Club Monthly Saver | 6.25% | £10 | Open online or in branch. You must be a Lloyds current account holder and a Club Lloyds customer. Maximum deposit is £400 per month |
| Natwest Digital Regular Saver | 6.17% | £1 | Open online or in branch. You must have a Natwest current account. Maximum deposit is £150 per month |
| Barclays Rainy Day Saver | 5.12% | £1 | The 5.12% rate is available on balances up to £5,000. After that it falls to 0.15%. Open online or in branch, available only to Barclays Blue Reward Members. |
| HSBC Regular Saver | 5% | £25 | You can open the account online and must have a HSBC current account |
| Santander Edge Saver Exclusive | 4% | £1 | Open online. Available to Santander Edge current account customers. |
The best one-year fixed accounts
If you’re happy to lock a chunk of your savings away for a year, it might be worth considering a one-year fixed rate account.
Just note that if you take money out before the 12-month period ends, you will lose the interest deal. Here are the best deals available for 12-month fixed accounts.
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| My Community Bank 1 Year Fixed Saver | 6.06% | £1,000 | Save up to £85,000. Open online. |
| Atom Bank 1 Year Fixed Saver | 6.05% | £50 | Save up to £85,000. Open online. |
| Charter Savings Bank 1 Year Fixed Saver | 6.02% | £5,000 | Save up to £1million. Open online. |
| Kent Reliance 1 Fixed Bond | 6.01% | £1,000 | Save up to £1million. Open online or in branch. |
The best two-year fixed-term savings accounts
If you are happy to fix for two years, the interest rates are marginally better. But just as with one-year fixed accounts, you can’t access the cash until the fixed period ends.
This also means if better rates appear within that time frame, you will be locked in at a lower rate.
But, since there is no guarantee that will happen, you might decide it’s better to start earning something on short-term savings immediately.
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| Atom Bank 2 Year Fixed Saver | 6.05% | £50 | Save up to £100,000. Open on the Atom app. |
| Ford Money 2 Year Fixed Rate Bond | 6.05% | £500 | Save up to £2million. Open online. |
| Kent Reliance 2 Year Fixed Saver | 6.02% | £1,000 | Save up to £1million. Open online or in branch. |
| Aldermore 2 Year Fixed Saver | 6% | £1,000 | Save up to £1million. Open online. |
What are the different types of savings accounts?
When putting your cash away you will usually have the option of different types of saving accounts – ranging from easy access accounts to one, two or three-year fixes.
Easy access accounts allow you to take your money out as and when you please.
Fixed-rate accounts come with restrictions and also mean you cannot access your cash until the account reaches maturity.
You usually earn more interest if you are willing to lock your cash away for a fixed period but keep in mind that this also takes away the flexibility should you need the cash suddenly.
Although two or three-year fixed accounts, sometimes described as fixed-rate bonds, can earn you more interest, it is worth noting that the rates currently on offer do not beat inflation, meaning the value of your cash is still eroding. So if you can lock your money away for the long term (five years or more) then your cash could potentially earn more on the stock market.
Looking to switch current accounts? Take a look at our guide in the best current account switching offer, where right now you can earn as much as £200 for moving bank accounts.
This article is updated regularly to bring you the latest on the best savings accounts rates. Sign up to our newsletter to stay up-to-date-on the latest deals for cash savings.
-
August NS&I Premium Bond winners unveiled - have you scooped £1m?Two lucky NS&I Premium Bond winners are now millionaires in the August draw. Find out here if you are one of them
-
Savings rates more than double in a year as challenger banks top the best buy tables
The best savings rates have doubled - and in some cases tripled - in a year, with challenger banks offering the highest rates. While they are still no match for inflation, we look at what you could be earning.
-
Midlife MOT: what is it and who can get one?
The government has launched an online midlife MOT to help older workers with financial planning, health guidance and career skills. But how does it work, who can get one and would you pass it?
-
Coventry Building Society launches new best easy access savings account
Coventry Building Society's deal tops our easy access savings account list, but could your cash be put to better use?
-
NS&I boosts fixed-term savings rates
The NS&I, the government-backed savings institution has mirrored recent rate rises seen elsewhere in the market.
-
Should you let AI give you financial advice?
Can AI fill the financial advice gap? Kalpana Fitzpatrick looks at the pros and cons of using AI to guide your finances.
-
Small pension pots to be consolidated, says DWP
Workplace pension schemes worth less than £1,000 that become “deferred” when a saver changes jobs will be consolidated under a new system
-
Watchdog summons banks to explain paltry savings rates
Savings rates trail mortgage rates - and the financial watchdog has summoned banks to a meeting amid concerns of profiteering.
