Best UK savings accounts - and how to beat these rates through your bank
Savings rates have been slowly creeping up over the last year - so are you getting the most out of your money?
The cost of living crisis means it is more important than ever to check where your cash is sitting.
Interest rates on savings accounts have been rising thanks to nine consecutive base rate hikes by the Bank of England.
The Bank has just hiked its base rate to 3.5% with potentially more rises on the cards.
But while savings rates are on the up, they are still painfully behind the rate of inflation.
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Inflation has just dipped slightly to 10.5% but remains close to a 40-year high.
The top savings rate for easy-access accounts currently sits at 2.9%.
(Getty Images)You can also get up to 4.56% fixed - but this is down compared to October 2022 when the best-paying fixed deals paid over 5%.
Experts suggest many longer savings products have already factored in future interest rate rises.
When picking a savings account, make sure you are covered by the Financial Service Compensation Scheme (FSCS) which protects up to £85,000 of your money if a provider goes bust.
There is an allowance you can earn in interest each year year tax-free.
The personal savings allowance is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers.
This doesn’t include interest earned in ISA accounts, as these are tax-free savings products.
You can put away £20,000 each year into ISAs.
Savers should be warned that rates are changing rapidly - but here are the top rates at the time of writing.
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Best easy-access savings accounts
Easy-access savings accounts allow you to withdraw your money when you want - although some providers do limit how many withdrawals you can make per year.
This is good for those who may need to dip into their savings - although the rates aren’t as good as fixed accounts.
The top-paying standard easy-access account at the time of writing are:
Yorkshire Building Society - 3.35% (between £1 and £5,000) or 2.85% (between £5,001 and £500,000)
Shawbrook Bank - 2.92% (between £1,000 to £85,000 or £170,000 joint account)
Cynergy Bank - 2.9% (includes fixed 0.15% bonus for first 12 months - deposit between £1 and £1million)
However, there are ways to get a better rate - depending on who you bank with and how much you want to save.
Barclays' Rainy Day Saver offers a rate of 5.12% but you need to be a member of its Blue Rewards.
You can also only deposit up to £5,000.
Blue Rewards costs £5 each month but it does pay £5 cashback if pay out two or more direct debits.
The Nationwide FlexDirect current account pays 5% interest fixed for one year for new customers - but only on up to £1,500.
The Santander Edge Saver for existing Santander Edge customers pays 4% on up to £4,000 of your savings.
This includes a 0.5% bonus for the first 12 months. Santander Edge isn't a free account, you pay £3 a month to use it.
Or if you have a HSBC current account, you can get 3% interest on up to £10,000 on the months where you don’t withdraw any money.
For months where you do withdraw money, the rate drops to 0.65%.
Chip also offers a 3% bonus on your money - not technically interest - but this isn't protected by the Financial Services Compensation Scheme.
Best notice savings accounts
Like the name suggests, these accounts require you to give notice when you want to withdraw your money.
The top-paying notice accounts right now are:
Hinckley & Rugby Building Society - 3.6% (120 days notice - deposit between £2,500 and £300,000)
- OakNorth Bank - 3.35% (120 days notice - deposit between £1 and £500,000) or 3.2% (90 days notice - deposit between £1 and £500,000)
Best fixed-rate savings accounts
Fixed-rate accounts don't normally allow you to withdraw your money until the end of the term - not ideal for households who may need to access their funds.
You do get a return compared to easy-access accounts, but as rates are expected to keep rising, it might be a good idea not to fix for too long.
The top-paying fixed accounts right now are:
Zenith Bank via Raisin - 3.5% (six months fixed - deposit between £1,000 and £85,000)
Atom Bank - 3.75% (nine months fixed - deposit between £50 and £100,000)
Habib Bank Zurich - 4.33% (one year fixed - deposit between £5,000 and £1million)
Atom Bank - 4.45% (two year fixed - deposit between £50 and £100,000
SmartSave - 4.56% (three year fixed - deposit between £10,000 and £85,000)
Isbank via Raisin - 4.5% (five year fixed - deposit between £1,000 and £85,000)
Best ISA savings rates
ISA stands for Individual Savings Account.
Each year, you can deposit £20,000 into an ISA and you don't pay tax on the interest.
The rates on these savings products have been improving in recent years, although you can still get better rates elsewhere.
The top-paying easy-access cash ISAs right now are:
Yorkshire Building Society - 2.75% (minimum deposit £1)
Sainsbury's Bank - 2.7% (minimum deposit £500)
Cynergy Bank - 2.65% (minimum deposit £1)
Again, there are ways to beat these rates.
If you have a current account with Virgin Money, you can get a better ISA rate of 3%.
Aldemore also offers an ISA with a rate of 2.8% but you must give 30 days notice before you can access your money.
The top-paying fixed-rate ISAs right now are:
Barclays - 4% (one year fixed - minimum deposit £1)
Virgin Money - 4.11% (two year fixed - minimum deposit £1)
UBL Bank - 4.11% (three year fixed - minimum deposit £2,000)
Hinckley & Rugby Building Society - 4.25% (five year fixed - minimum deposit £500)
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