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Top Savings Accounts 3% easy access, up to 3.52% fixed

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Where to start saving

Savings starting line

Not everyone should just grab the savings account with the best interest rates - often you can use spare cash more profitably, depending on your circumstances. Read the full Starting Saving guide to see where your money's best used.


If you've checked all of the above, and have decided you want somewhere safe to stow your cash, then you're in the right place...

A savings account is just a place to dunk an unlimited amount of unused cash, to earn a higher rate of interest.

Savings accounts have less functionality than normal day-to-day accounts offering neither cheque books nor, with a few exceptions, cash cards.

How safe are your savings?

Bank collapse was once easy to dismiss, then the credit crunch and global market turmoil hit. After the calamities that hit Northern Rock, Bradford & Bingley, Icesave and Kaupthing, every sensible saver should ask "is my money safe?".

The answer is simple. Provided the money is in a UK-regulated bank or building society account, it's protected under the Financial Services Compensation Scheme (FSCS) meaning...

Up to £85,000 per person, per financial institution is guaranteed.

How safe is your money in a savings account?Sadly the exact rules about what counts as "UK-regulated", the links between institutions, and joint accounts make it more complex. For full info on the rules, see the detailed Are Your Savings Safe? guide.

For large savings, to keep it 100% safe, simply spread it in a number of accounts, not putting more than £85,000 in each. In fact, consider spreading money even if you've under £85,000, as if you needed to claim compensation you wouldn't have instant access to your cash.

This guide and best buys

It's impossible to pick "which bank is in trouble?" Even the great names of world banking like Goldman Sachs and Merrill Lynch have been in trouble. Therefore our stance is to not try to judge that, but suggest you rely on the UK savings guarantee. So we report all top rates regardless, but include any protection oddities.

What to watch with savings

While savings are the simplest of products, providers still manage to throw a few wobblers into the mix. Click the links to read what to watch out for...

The UK's best savings rates

Calculating a budgetThe best interest rate savings accounts currently available are listed below. Yet if you've not used your tax-free allowance this year, first check out Top Cash NISAs as they are likely to pay you more interest.

The best interest rate accounts

All these deals are variable rate, so you need to monitor them to ensure the rate doesn't drop (switch away if it does). Don't just plump for the highest rate, read the pros and cons then pick one that suits.

Unless stated, all have full protection under the £85,000 per person, per institution rules. Though do check how institutions are linked along with the other notes in the Safe Savings guide.

Easy access

Santander* 3% AER - in a CURRENT accountOn £3k-£20k balance. £2/mth fee, plus must pay-in £500/mth

Santander
  • Rate: 3% AER: between £3k-£20k, 2% over £2k, 1% AER over £1k
  • Fee: £2/month
  • Min deposit: £500 per month
  • Max deposit: N/A but only earn interest on £20k
  • Access: Online, branch or by phone
  • Interest paid: Monthly
  • Withdrawal restrictions: Unlimited withdrawals - it is a current account
  • Safety: Shared £85,000 UK protection.
Apply*
3,3000

Now, this is a bit bizarre! The Santander 123* current account is actually the top paying easy-access savings account. If you've between £3,000 and £20,000 in it, you get 3% AER on the whole amount - then if the balance drops, so does the rate.

The rub is, you need to operate it like a normal current account. This means you need to pay in £500/month (equivalent to a pre-tax annual salary of at least £6,000) and have at least two direct debits going out of the account.

You'll also need to pay the £2/mth fee, though it pays a nice 1%-3% cashback on bills such as council tax, phones and energy, which should easily cover that - many make £10/mth or more on top.

For full details of how the cashback works, overdraft costs and how this compares to other current accounts, read our full Best Bank Accounts guide.

BM Savings: 1.6% AER* Top easy access account that allows unlimited withdrawals.

MN Savings
  • Rate: 1.6% AER, 1.1% bonus/year
  • Min deposit: £1,000
  • Max deposit: £1 million
  • Access: Online
  • Interest paid: Annually
  • Withdrawal restrictions: Unlimited
  • Safety: Shared £85,000 UK savings safety guarantee
Apply*
1.6,1000

If you're looking for an account that you can stash your cash in and access whenever you want, then the Online Extra account from BM Savings* is the market leader, paying 1.6% AER on balances of more than £1,000. The rate includes a 1.1% bonus for a year, which effectively acts as a minimum rate guarantee for that time. But diarise that date as after 12 months you'll loose the bonus and the rate will plummet.

You can make as many penalty free withdrawals from the account as you wish. However, make sure you don't let the balance drop to below £1,000 otherwise you'll lose the bonus, meaning you'll earn just 0.5% until the balance goes back up to £1,000.

As the name suggests, the account can only be opened and managed online, but your first deposit must be made by cheque - further deposits can only be made via an online transfer from a linked account. Interest is paid annually on the anniversary of when you made your first deposit.

BM Savings shares its £85,000 UK saving safety guarantee with Bank of Scotland, Halifax, Saga, Intelligent Finance and the AA. See more information about the Savings Safety rules.

Saga: 1.5% AER* incl 1% bonus. Market-leading rate for over 50's.

  • Rate: 1.5% AER variable
  • Min deposit: £1,000
  • Max deposit: £1 million
  • Access: Phone only
  • Interest paid: Annually or monthly
  • Withdrawals: Unlimited
  • Safety: Shared £85,000 UK savings safety guarantee
Apply*
1.5,1000

If you're 50 or over, you can get the Telephone Saver account (issue 14) from Saga* which pays a decent 1.5% AER rate, including a 1% bonus for a year, provided you've £1,000 or more to save.

You can make unlimited withdrawals from the account, but if your balance drops below £1,000 you'll lose the bonus (meaning you'll only earn 0.5%) until your balance goes back up to £1,000.

You can choose to have your interest paid monthly or annually. The rate is effectively fixed for twelve months, so when the bonus ends in a years time make sure you diarise to transfer out to a better paying savings account.

You can open the account online or on the phone, but once opened it can only be managed - as the name suggests - by phone.

Saga shares its £85,000 UK savings safety guarantee with the rest of the HBOS group, including Halifax, BM Savings and the AA. See more information about the Savings Safety rules.

Post Office: 1.4% AER incl 0.65% bonus. Allows unlimited withdrawals.

  • Rate: 1.4% AER incl 0.65% bonus for a year
  • Min deposit: £1
  • Max deposit: £2 million
  • Access: Online only
  • Interest paid: Annually or monthly
  • Withdrawal restrictions: Unlimited
  • Safety: Shared £85,000 UK savings safety guarantee
Apply
1.4,1

The Online Saver from the Post Office pays a 1.4% AER, which includes a 0.65% bonus for a year. This means the rate won't drop within the twelve months, but it'll plummet after, so diarise to ditch and switch then.

As it's name suggests, this is an online only account. Once opened, you can start saving from £1, which you can pay either from a bank account, or from a debit card. Interest can be paid annually or monthly - choose what suits you best

Withdrawals are unlimited, so you can take cash out when you like, penalty-free.

The Post Office shares its £85,000 UK savings safety guarantee with Bank of Ireland UK. See more information about the Savings Safety rules.

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Specialised alternatives

Spreading cash for safety The best interest rate accounts if you need to spread savings

As explained in the Savings Safety guide, you're protected up to £85,000 per person per financial institution. If you want max safety on bigger amounts, you must spread cash wider.

The following are the next top payers in the market (or use 100%-protected savings accounts, at a lower rate).

100% protected savings For more than £85,000 in one place.

If you've got more than the protected £85,000, and the safety factor worries you, plus you've decided that spreading around multiple accounts isn't for you (see above), there are a few ways to get a 100% guarantee on savings. But you will miss out on the rates shown above.

Top cash machine access savings Some accounts provide an ATM cash card

The easy way to assure yourself 24-hour access to your cash is to get a savings account that gives you a cash machine card and allows free withdrawals from any Link machine.

Fancy looking locally?

All the rates above are available to anyone. However some small building societies occasionally offer special rates to people who live in the local area, or to existing members. It's always worth checking yours.

Occasionally cashback websites may give you a sign-up bonus when you open an account, so check 'em too.

Top ethical easy access savings

Ethical savings accounts - where providers behave ethically in terms of the environment, human rights and more - have jumped in popularity. Our main focus always is telling you the top savings rates, but to match demand we've worked with Ethical Consumer to list the top-paying accounts that also rate highly on their ethics.

EthicalConsumerScale

Ethical top pick: 1.4% AER

Both have limited withdrawals though

See the graph on the right for what Ethical Consumer's ratings mean.

  • 1.4% AER - 12 withdrawals/year, postal access
    Ethical 13.5/20 Rating
    The PostSave Easy Access (2) from Coventry BS pays 1.4% on balances from £500, and allows 12 penalty-free withdrawals a year. Further withdrawals will be allowed, but you'll lose 30 days' interest for each.

    Coventry BS shares its £85,000 FSCS protection with Stroud & Swindon Building Society.
    Ethical Consumer score: 13.5 out of 20.
  • 1.25% AER - Unlimited withdrawals, online/post/branch access
    Ethical 13.5/20 Rating
    The Easy Access Savings account from Kent Reliance pays a clean 1.25% AER rate and allows you to make unlimited withdrawals. You need to open the account with £1,000 but the balance can drop to £1 afterwards. The account can be opened and managed online, by post or in branch

    Kent Reliance has the full £85,000 savings safety guarantee.
    Ethical Consumer score: 13.5 out of 20.

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Fixed rate savings

Most savings accounts are variable, meaning the rate can change both with the Bank of England's base rate and as providers change their competitive stance - so to keep earning well you need to actively monitor your accounts. Yet there is an alternative...

Fixed rate savings give a guaranteed rate for a set period, but you can't take your money out during that time.

Therefore, they're only suitable for those who are happy to lock cash away for the entire term.

The dice don't have all the answers Is now the right time to fix savings?

In August 2013, it was expected the Bank of England base rate wouldn't rise for several years. But now, almost a year later, Mark Carney, the Bank of England boss, has suggested we'd see the first rate rise in 2015, and it could be as high as 2.5% by early 2017.

So, although it's probable that interest rates are unlikely to improve significantly in the very near future, fixing for too long could mean you lose out if base rate does rise.

Currently, the top fixes beat easy access, if you can lock cash away, you can boost your rate. But, of course, if rates did rise from 2015 (and no one has a crystal ball - though Carney's suggestion is pretty strong) by fixing you would've lost the flexibility to ditch and switch to a better payer, so it's important to go into fixed rate savings with your eyes open.

If savings safety status of banks change (eg, via mergers) it's harder to get at your cash

You may need to set up another account, in order to pay money in

1 Year

The best one-year fixed rates

If you can spare access to your cash for a year, you can benefit from some higher rates.

BM Savings BM Savings 1.85% AER* Good if you can lock cash away to boost rates

  • Product & link: BM Savings*
  • Rate: 1.85% AER
  • Length of fixed deal: 1 year
  • Min deposit: £1
  • Max deposit: £10 million
  • Savings safety: Shared £85,000 FSCS protection
Full detailsApply*

first trust State Bank of India 1.8% AER Apply by post or in branch. Min £10,000

  • Product & link: State Bank of India
  • Rate: 1.8% AER
  • Length of fixed deal: 1 year
  • Min deposit: £10,000
  • Max deposit £5 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply
2 Years

The best two-year fixed rates

Rates are higher in a two-year account. But always remember, the longer you lock cash away for, the more chance there is that rates will rise while your cash is untouchable.

first trust State Bank of India 2.25% AER Apply by post or in branch. Min £10,000

  • Product & link: State Bank of India
  • Rate: 2.25% AER
  • Length of fixed deal: 2 years
  • Min deposit: £10,000
  • Max deposit £5 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply

first trust Secure Trust Bank 2.11% AER Apply online. Min £1,000

  • Product & link: Secure Trust Bank
  • Rate: 2.11% AER
  • Length of fixed deal: To 31 October 2016
  • Min deposit: £1,000
  • Max deposit £1 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply

3 Years

The best three-year fixed rates

If you're happy locking your cash away for longer, you can get more in a three-year account. But if interest rates recover in the next three years, you could lose out. There is one account that tracks the Bank of England's base rate, so if the rate does go up so will your interest. But you need to think carefully about if you want to fix for this length of time.

Investec Investec 2.6% AER* Rate increases with base rate. Min £25,000.

  • Product & link: Investec*
  • Rate: 2.6% AER
  • Length of fixed deal: 3 years
  • Min deposit: £25,000
  • Max deposit: £250,000
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply*

Investec United Trust Bank 2.5% AER Apply online or by post. Min £500.

  • Product & link: United Trust Bank
  • Rate: 2.5% AER
  • Length of fixed deal: 3 years
  • Min deposit: £500
  • Max deposit: £500,000
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply
4 Years

The best four-year fixed rates

Decent choices are limited when saving for four years. You’ll only get slightly more than a three-year account and the longer you fix for, the more you risk rates increasing in the meantime. So you may want to consider a shorter fix.

first trust Secure Trust Bank 3.01% AER Apply online. Min £1,000

  • Product & link: Secure Trust Bank
  • Rate: 3.01% AER
  • Length of fixed deal: To 30 September 2018
  • Min deposit: £1,000
  • Max deposit £1 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply

Vanquis Vanquis Bank 2.75% AER Apply online or by phone. Min £1,000.

  • Product & linkVanquis Bank
  • Rate: 2.75% AER
  • Length of fixed deal: 4 years
  • Min deposit: £1,000
  • Max deposit: £250,000
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply
5 Years

The best five-year fixed rates

Fixing for longer usually boosts rates. If you want to lock money away for longer, these are the best rates on offer.

Investec Investec 3.25% average AER* Pays two rates over the five years. Min £25,000

  • Product & link: Investec*
  • Rate: 2.85% AER
  • Length of fixed deal: 5 years
  • Min deposit: £25,000
  • Max deposit: £250,000
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply*

first trust Secure Trust Bank 3.11% AER Apply online. Min £1,000

  • Product & link: Secure Trust Bank
  • Rate: 3.11% AER
  • Length of fixed deal: To 31 October 2019
  • Min deposit: £1,000
  • Max deposit £1 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply
7+ Years

The best longer-term fixed rates

Though the rate is higher than the five year options, locking in for seven years can be risky. If rates rise by even 2% during this time then your savings rate may not look so great. Consider going for a shorter fix if you don't need regular income from your savings.

first trust Secure Trust Bank 3.52% AER Apply online. Min £1,000

  • Product & link Secure Trust Bank
  • Rate: 3.52% AER
  • Length of fixed deal: To 30 September 2021
  • Min deposit: £1,000
  • Max deposit £1 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply

first Save First Save 3.5% AER Apply Online. Min £1,000.

  • Product & link First Save
  • Rate: 3.5% AER
  • Length of fixed deal: 7 years
  • Min deposit: £1,000
  • Max deposit: £2 million
  • Savings safety: Full £85,000 FSCS protection
Full detailsApply

For other lengths of fixed rates, and a full list of fixed rate savings accounts, use the MoneySupermarket* and Moneyfacts comparisons, in conjunction with the Savings Safety guide to examine the protection for any accounts. With these, it's crucial you double-check the rates on the banks' own websites before applying, as the comparison tables are NOT continually updated.

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Top ethical fixed savings

Ethical savings accounts - where providers behave ethically in terms of the environment, human rights and more - have jumped in popularity. Our main focus is always telling you the top savings rates, but to match demand we've worked with Ethical Consumer to list the top-paying accounts that also rate highly on their ethics.

EthicalConsumerScale

Earn up to 2.5% AER fixed in an ethical bank

All the accounts below have the full £85,000 UK guarantee. See the graph on the right for what Ethical Consumer's ratings mean.

  • 1.75% AER fixed for one year
    Rating 13.5/20
    The Kent Reliance one-year fixed rate Bond pays 1.75% AER on balances over £1,000. You can apply online, by post or in branches.
    Ethical score: 13.5 out of 20.
  • 2.1% AER fixed for two years
    Rating 13.5/20
    The two-year Fixed Rate Bond from Kent Reliance pays 2.1% AER, on balances over £1,000. You can apply online, by post or in branch.
    Ethical score: 13.5 out of 20.
  • 2.25% AER fixed for three years
    Rating 13/20
    The Skipton BS Fixed Rate Bond pays 2.25% AER for three years, with a minimum deposit of £500. You can apply online only and interest can be paid monthly or annually.
    Ethical score: 13 out of 20.
  • 2.5% AER fixed for five years
    Rating 13.5/20
    The fixed rate Bond from Leeds BS pays 2.5 for five years on balances over £10,000. You can apply online, by post or in branch. Interest is paid monthly and at maturity into a nominated account.
    Ethical score: 13.5 out of 20.

Do you live off savings interest?

When using fixed rate savings, you won't usually get paid monthly interest. Therefore many who rely on interest earned from savings as an income stream don't fix, even though they're paying higher rates. Yet there's a workaround.

Here's an example (ignoring tax for ease of explanation)...

You've £100,000, and can get 5% in a year-long fixed account and 3% in an instant access account. You'd like roughly £5,000 of interest from these savings to supplement your income.

Put £95,000 in the fixed account, and £5,000 in the instant access. Then spend the instant access money over the year, knowing the £4,750 interest earned in the fixed account will make up for it. Then you're effectively getting the high rate and spending the interest.

This way you can grab the higher fixed rate accounts, but retain access to enough cash in the meantime. Remember though, if you might need to get at the whole lump within the fixed term, this trick won't help and fixed rates may not be for you.

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Top small business savings accounts

If you have a business current account, the chances are it pays roughly 0% interest. So any businesses that have cash stored, even just to pay the taxman, are missing out on interest.

Who needs a business account?

There are two main types of small business structure; whether this works for you depends on yours.

  • Sole traders

    While you can open a business account, there's little point. Normal savings accounts pay far higher rates, so you would be better off opening an account in your own name and putting your business's cash in there.
  • Limited companies.

    This is the prime reason for small business accounts. For limited company business owners to move money into their own name requires a form of payment from the company to the individual. which will trigger a tax liability. Therefore business savings accounts are a way of earning interest on money in the company's name.

Savings safety

If you have a company with turnover under a million pounds, money in the bank has the same £85,000 per person (company) UK Savings Safety protection as private individuals. However if you have larger turnover, you're not protected.

Many of the accounts are specifically for small businesses. If you're larger, then check there are no turnover restrictions before applying for an account.

For the current top rates, read the Small Business MoneySaving guide.

The Savings Calculator

Simply enter all the details, remembering to choose the level of tax you pay. For the most accurate answer use the AER (Annual Equivalent Rate), which should be listed on your statement. Obviously as most accounts' interest rates are variable, the calculations will change if the rate does, but it should give you a good idea.

The calculator assumes you put money in at the beginning of each month, so if this isn't how you do it, the answers will be ever-so-slightly out. If you don't make regular deposits but put lump sums in, figure out the monthly equivalent for a rough answer. Feel free to play with the results to see how it impacts your savings.

Savings Calculator

Pick your question...

How much do you already have? £

How much can you save a month? £

What's the interest rate? (before tax) %

How far ahead do you want to look? years and months time.

How much tax do you pay? No Tax Basic Rate Higher Rate
Additional





How inflation hits your savings

To really know how well your savings are doing, you have to look at it compared to the rate of inflation. Inflation is the measure of the rate at which prices increase, so if savings don't beat inflation after tax, they're losing you money.

Ensure your savings aren't losings...

A savings account that pays less than the rate of inflation is eroding your wealth. An example using simple numbers should help...

Imagine inflation is 5% ...things costing £1 this year will then cost £1.05 next year

You have £1 in a savings account at 2% interest after tax ...by next year it will have grown to £1.02

Therefore saving's reduced your spending power by 3p/pound ...it's a losings not a savings account.

Of course sometimes prices drop - as happened in 2009 - and you get negative inflation, known as deflation. This can sometimes be positive for savings - read about the impact of deflation on savings.


Glossary

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If a link has a * by it, that means it is an affiliated link and therefore it helps MoneySavingExpert stay free to use, as it is tracked to us. If you go through it, it can sometimes result in a payment to the site. It's worth noting this means the third party used may be named on any credit agreements.

You shouldn’t notice any difference and the link will never negatively impact the product. Plus the editorial line (the things we write) is NEVER impacted by these links. We aim to look at all available products. If it isn't possible to get an affiliate link for the top deal, it is still included in exactly the same way, just with a non-paying link. For more details, read How This Site Is Financed.

Duplicate links of the * links above for the sake of transparency, but this version doesn't help MoneySavingExpert.com: BM Savings 1 year, BM Savings easy access, Investec 3 year, Investec 5 year, MoneySupermarket, Saga easy access, Santander 123

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