Top Savings Accounts
1.25% easy access or up to 2.65% fixed
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The top savings account interest rates have started creeping up following November's base rate rise, but many are still dismal. You need to work hard to get your money into the right type with the best possible rate.
This guide will take you through the maze of accounts on offer to find the most profitable home for your cash – and keep it safe.
Other top MSE savings guides...
Regular savings: earn up to 5% interest if you can save every month
Automatic app savings: earn 3%+ interest with clever apps that save for you
Cash ISAs: save without the taxman taking a bite of your interest
Safe savings: find out how to protect your savings
12 need-to-knows before you pick a savings account
What is a savings account? Basically, it's just a place to dunk cash to earn interest and save for the future. Some accounts are variable rates with easy access while others are fixed where access to your money is restricted. But don't just go for the headline screaming the highest rate without first examining how it works and what the alternatives are.
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Savings interest is now paid tax free
It used to be that for every £100 interest earned, basic-rate taxpayers lost £20 in tax, higher rate £40. Yet since April 2016, the personal savings allowance (PSA) has turned it on its head. Now:
- All savings interest is paid gross, ie, there'll be no tax taken off.
- This works for ALL interest – not just savings accounts, but bank accounts, credit unions and peer-to-peer savings. However, share dividends aren't included.
- Basic 20% rate taxpayers can earn £1,000/yr interest tax-free.
- Higher 40% rate taxpayers can earn £500/yr interest tax-free.
- Top 45% rate taxpayers don't get a PSA, so all interest is taxable.
- Cash ISAs, Premium Bonds and other tax-free savings interest DON'T count towards the £1,000 (or £500) PSA limit so you can get this interest too.
- If you earn interest over the limit, you pay tax at your income tax rate, but only on the amount over the limit.
If you do then owe tax, it'll be taken through your tax code. If you self-assess, you'll declare anything you need to pay there. HMRC estimates the PSA will take 95% of people out of paying savings interest tax altogether. For full info and what to do if you'll earn over the limit see our how the personal savings allowance works guide.
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If you've costly debts, pay them off before saving
If the interest cost of your debt is more than you'd earn on savings you're better off paying down the debt. If you've £1,000 on a credit card at 20% it costs £200 a year, assuming a constant balance. In savings at 2%, you'd earn £20 a year, so you'd be £180 a year better off repaying the card. Much more info in Should I Repay Debts With Savings?
Quick questions
What if I have a 0% card or a really low rate?
Well, if your debt is free, the urgency isn't there to pay it off. But debt at 0% tends to have an end date.
So long as you meet minimum payments, there's nothing wrong with saving while the debt is at 0% but then paying it off when the intro deal ends. This way, you'll have the best of both worlds – you'll have paid off the debt without paying any interest, plus you'll have earned interest on the savings while you had them.
A low rate is different. You need to examine whether you're actually paying more interest on the debt than you're getting on the savings.
Shouldn't I have an emergency fund?
It is important to have access to an emergency fund in case the worst happens, but that doesn't mean you have to actually have a pot of cash. If you pay off an expensive credit card, then keep the card for emergencies.
If nothing untoward happens then you never need to use the card, but if something goes wrong, then you could always use the card, and you'd be no worse off than had you not paid it off anyway.
A practical example of why this works: Johnny Comelately
Johnny Comelately currently has £5,000 saved up, earning 2% interest, in case of emergency, yet he also has £5,000 on credit cards at 18%. Thus while his savings are earning him £100 a year, his debts cost £900. Overall he is paying out £800 a year.
Now compare what happens if he pays off his debts with his savings vs not doing so:
Situation A: No emergency happens
No change. Keeping both debts and savings costs Johnny £800 a year.
Pay off debts with savings. Johnny now neither earns nor pays any interest, thus is relatively £800 a year better off, and all the new cash he puts aside can go towards genuinely saving.
Situation B: After a year he has to pay £5,000 for an emergency roof fix
No change. Johnny uses the savings for the emergency. This leaves him with no savings and £5,000 of credit card debt at 18%.
Pay off debts with savings. As Johnny has no savings, he has to borrow the £5,000 on his credit cards. This leaves him with no savings and £5,000 debt on his credit card at 18%.
In other words, Johnny is in exactly the same position in situation B, regardless of what he does. Yet before the emergency he was £800 a year better off by paying off his debts with his savings.
So overall, whether an emergency happens or not, the best result is to pay off your debts with your savings. The only time to beware of this is if you're not assured of being able to reborrow the cash.
Usually with credit cards it's fine, as they're a readily available source of credit, but if your debt is a personal loan, there's no guarantee you will be able to get another – in which case an emergency fund is sensible.
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If you've got a mortgage, check if you should overpay it before saving
This is the same principle as above: if the mortgage rate is higher than the savings rate, and you can spare the cash, overpaying is a solid financial decision. However, there are possible complications, such as penalties for paying too much...
Quick questions
Will I always be allowed to overpay and is there a limit?
Whether you can overpay your mortgage or not depends on your mortgage provider and the type of mortgage you've taken out.
The vast majority of mortgages allow you to overpay, though there's usually a limit to how much you can overpay. Common limits are £10,000 a year or 10% of the value of your mortgage debt each year.
It's also important to check how it plans to use your overpayment. Some lenders will use it to reduce the term of your mortgage, so your monthly payments stay the same but it'll be paid off quicker. Where the amount overpaid is small enough, others use it to reduce your next monthly payment, which only saves you a few days' interest.
Always check how the mortgage lender plans to use your overpayment, and if possible, say you want it to reduce the balance, and keep your monthly payments the same to really see the benefit.
Find full information on the pros and cons in the Should I Overpay my Mortgage? guide, or see how overpaying affects your mortgage with the Overpaying my Mortgage calculator.
If I overpay my mortgage can I access that extra cash again?
If you have an offset mortgage the ability to access those extra payments is usually part of the deal. An offset is where you build up savings to reduce/offset the amount of debt you pay interest on, so if you had a £100,000 mortgage and £20,000 in savings, you only pay interest on £80,000.
On other types of mortgages, some flexible deals allow you to borrow back overpayments. However, this practice is far less common now for new mortgages. Check your mortgage terms carefully.
One warning: just because you've overpaid doesn't automatically mean you'll be allowed to borrow the money back in all cases. Your mortgage lender will do checks on affordability so they comply with current lending criteria. For example, you might be turned down if they thought you'd struggle to make future contractual payments – they'd want to keep hold of as much of your money as they could in that case.
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Have you used your 2018/19 ISA allowance? It allows you to save and never pay tax on interest
A cash ISA is simply a savings account where you never pay tax on the interest. Anyone aged 16 or over can put up to £20,000 into their cash ISA during the current tax year.
Traditionally this was the first place for taxpayers to put a lump sum, yet the personal savings allowance has made them a less attractive option. Read is the cash ISA dead? for full analysis on whether or not you should open one.
Quick questions
Isn't my money locked away in an ISA? (That's a common myth – it's not)
Just like savings accounts, there are different types of ISAs. One of the main types people opt for is an easy-access ISA. And, just like easy-access savings, the money's there for you to take it out whenever you like.
Of course, you can get fixed-rate ISAs, where you put money in there for a number of years. But, unlike normal savings, even fixed-rate ISAs have to allow you access to your money, although all will charge an often hefty interest penalty if you do. Find out more about how ISAs work in the Full ISA Guide.
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Are you willing to switch bank account? You can boost savings rates
Surprisingly, some banks' current accounts pay a higher rate of interest than their savings accounts – these are currently the top rates available, though many have cut their rates and perks in recent months. Unlike normal savings accounts, you'll need to pass a credit check.
For a selection, see our top pick bank account section below, or for a full range of accounts, see the Best Bank Accounts guide.
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Can you put money aside each month? Consider a regular saver
This is a specific product for putting £10-£500 in every month (maximum deposits vary by account). If you want to save more, combine a few. The main advantage is they tend to pay much higher rates of interest than standard deals. For more details and best buys, see the full Regular Savings Accounts guide.
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Find it hard to save or unsure what you can afford to put aside? Earn up to 5% with automatic savings
Some apps (with your permission) can connect to your current account to determine how much you can afford to save each month. It's done automatically using clever algorithms, though some manual deposits are also permitted. You can currently earn up to 5% for a year, though there's no protection under the Financial Services Compensation Scheme (FSCS). For full details, see our App-based banking guide.
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Can you lock the cash away? Fixed-rate bonds give a (slightly) better return
You may want to consider getting a fixed-rate bond – which is just a savings account where the amount you earn is set in stone over a fixed time period. However, you can't usually access the cash during that time, and even if you can, the penalties can be large.
Usually fixed rates are higher than easy access, so they can be good deals. However, if normal savings rates were to increase during that time – and we are now in a position of rising rates – you'd be unable to ditch and switch to a better payer. See the full top fixed-rate bonds section.
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Up to £85,000 in savings per person is safe in UK-regulated accounts
Ten years ago, we wouldn't have had to stress this so clearly. No bank had collapsed in 100 years, but then the credit crunch and global market turmoil hit. After the calamities that hit Northern Rock, RBS, the Lloyds group, Bradford & Bingley, Icesave and Kaupthing, every sensible saver should ask: "Is my money safe?"
Provided the money is in a UK-regulated bank or building society, it's protected under the FSCS for up to £85,000 per person. Read more in the Are My Savings Safe? guide.
Quick questions
What counts as UK-regulated?
To be UK-regulated, a savings or current account needs to be registered as a deposit taker with the UK regulator, the Financial Conduct Authority.
Many banks are foreign-owned, such as Santander, which is owned by Spain's Banco Santander. However, Santander has UK headquarters and is authorised by UK regulators, so it is covered by the Financial Services Compensation Scheme.
However, some banks that offer products in the UK are not headquartered here – and rely on another country's deposit compensation scheme. A good example of this is Triodos Bank, which sometimes offers decent rates on fixed savings. But it is headquartered in the Netherlands, so you'd be reliant on the Dutch government's compensation scheme if Triodos went bust.
If you want to read more about how savings are protected, please read Are My Savings Safe?
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Ditch and switch after introductory 'bonus' rates end
These are temporary interest boosts to attract new customers. They're actually a good thing for many, as they effectively act as a minimum rate guarantee during the introductory period, promising you at least some interest.
But it is vital to remember the end date and switch as soon as the bonus ends, so you don't languish on a rubbish rate. Always know your account's exact name and the rate it pays as some try to flog you a similarly named deal at bonus-end.
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In a couple? Put savings in the name of the partner who pays less tax
If one of you pays a lower rate of tax than the other, it's financially worth considering whose name you save in (but ONLY if you trust them). Put it in the lower rate taxpayer's name and it'll fall under a higher personal savings allowance, so you can save more without paying tax. There's nothing stopping married couples or civil partners moving money between them.
If you're not married, there's no tax on giving your partner a 'gift' – though once the money goes across, be aware it becomes their cash, not yours. The only extra issue here would be inheritance tax. If the person who gave the cash dies within seven years the surviving partner may be charged tax.
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Got kids? Encourage them to start saving
If you've got children aged under 18, then you could consider opening a specialist savings account for them. Though they tend to mirror adult accounts (in that you can get easy access, fixed rate, ISAs etc), some of the current rates actually beat their grown-up counterparts. Plus, it can be a great way to teach your kids the merits of saving early.
You can gift enough savings per parent tax-free to earn £100 interest each year though open a junior ISA and all interest is tax-free regardless, though the cash is locked away. Other children's savings options include Regular Savings, Easy-Access Savings and Fixed Savings.
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Best BuysEasy-Access Savings
An easy-access account does what it says on the tin. Usually. The main idea is you pay cash into them, they pay you interest while the money's in the account and you can withdraw whenever you want.
But interest rates are usually lower than on notice and fixed savings accounts, because you pay for the flexibility to withdraw your cash at any point. Alternatively, if you can save every month, consider a regular savings or app-based account where you can earn up to 5% and your cash is more accessible.
Quick questions ()
When is an easy-access account not easy access?
Some accounts limit the number of withdrawals you can make a year. Others won't pay interest in any month a withdrawal is made. So, while they're listed as easy access in that you can have your cash when you like, they're not all truly 'easy' access.
These penalties for withdrawals can have a big impact. For example, you might only withdraw £100, but you'd lose interest on the £100,000 in your account for the whole month.
The terms vary, so always know what taking out your cash will cost you, and if you think you may exceed what's allowed, go for a more accessible account.
What's the difference between an account with a bonus rate and one without?
Bonus rates are temporary interest hikes to attract new customers so the rate will DEFINITELY plummet after the term ends, so ditch and switch then.
They're actually a good thing for many, as they effectively act as a minimum rate guarantee during the introductory period, promising you at least some interest. Plus, in a period of dire rates, they at least offer some respite. The rate could still fall during the bonus period if the non-bonus element drops.
Clean rate accounts don't pay a bonus. They are completely variable, so you could end up taking one out, and the provider drops the rate it pays on the account a couple of weeks later.
In our experience, all savings account rates – if you hold the account long enough – become rubbish accounts. But active savers can avoid this by shifting the cash to a better payer once they see their rate has dropped. This can happen at any time with any account that is not fixed.
Can I get a savings account that lets me withdraw cash from ATMs?
It's not common, but there are two accounts we know of that will let you do this. However, they don't feature in our best buy tables, so consider whether you're willing to trade a lower interest rate for easier access to your cash.
Product | Rate(AER) | Min/Max Balance | Max ATM withdrawal | Access | Protection |
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Post Office![]() | 0.75% AER (incl 0.65% bonus fixed for 1yr) | £100/£1 million | £1,000 per day | Online/ ATMs/ branch/ post | Shared |
Yorkshire BS![]() | 0.5% AER variable | £10/£2 million | £250 per day | Online/ ATMs | Shared |
My building society has a better rate than accounts here. Why isn't it featured?
MoneySavingExpert.com is a national website serving England, Scotland, Wales and Northern Ireland. So we try to feature accounts open to everyone, which means you need to be able to open them online, or by phone or post.
Branch based accounts are more difficult, as – unless the account is offered by one of the big banks – it's unlikely that everyone will be able to reach a branch. For example, Skipton Building Society sometimes offers decent branch-based accounts.
But a person in Brighton would have to travel almost 40 miles to their nearest branch to be able to open it. Similarly, someone in Carlisle couldn't access branch-based accounts offered by Ipswich Building Society as there isn't one close by.
It is always worth looking at local building societies as they can occasionally have a corking branch-based account. But, because we're a nationwide site, we just can't feature them all.
How can I avoid paying penalties on withdrawals?
The simple solution is to study the terms of your account so you know exactly when you can make penalty-free withdrawals.
Sometimes you won't be able to, but at least withdraw just after interest has been paid so you don't lose out.

Top rate with unlimited withdrawals
Shawbrook Bank – 1.25% AER Variable
The Shawbrook Bank Easy Access account pays 1.25%, the highest easy-access rate available and offers unlimited withdrawals (min £500 a time).
Need-to-knows
- You can open the account with £1,000.
- You can make unlimited penalty-free withdrawals of £500 or more from this account.
- The account can be opened online and managed online or by phone.
- Shawbrook Bank has the full £85,000 UK FSCS savings safety protection.

Good rate and you can open it with £1
Ford Money – 1.22% AER variable
The Ford Money Flexible Saver pays 1.22%, can be opened with just £1 and allows unlimited withdrawals.
Need-to-knows
- You can make unlimited penalty-free withdrawals from this account.
- The account must be opened and managed online.
- Ford Money has the full £85,000 UK FSCS savings safety protection.

Another strong rate
Kent Reliance – 1.21% AER variable
The Easy Access savings account from Kent Reliance pays a decent 1.21% as long as you've at least £1,000 in the account.
Like the Shawbrook and Ford Money accounts above, it also allows unlimited penalty-free withdrawals.
Need-to-knows
- You can make unlimited penalty-free withdrawals from this account, though if your balance falls below £1,000 you'll earn just 0.1% interest.
- The account can be opened and managed online, by phone or in branch.
- Kent Reliance has the full £85,000 UK FSCS savings safety protection.
Got £85,000+? How to spread cash for safety
Remember, cash in all the accounts above is protected up to £85,000 per person, per financial institution. If you're lucky enough to have more than this, it's best to spread savings across several different banks in case one gets into difficulty. We've picked a selection of the other top payers…
See list of other top paying accounts
Provider | Rate (AER variable) | Min/Max Deposit | How to Open | Withdrawal Restrictions | FSCS savings safety |
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Bank of Cyprus UK | 1.2% (incl 0.35% bonus for 12mths) | £1/£1 million | Online | None | Full |
Yorkshire BS | 1.2% | £100/£2 million | Branch/ post | One/yr | Full |
Tesco Bank | 1.18% (incl fixed 0.63% bonus for 12mths) | £1/£1 million | Online | None | Full |
AA Savings | 1.15% (incl fixed 0.95% bonus for 12mths) | £100/£2 million | Online | None | Shared |
(1) We say 'up to' 1.22% AER, rather than the 1.35% mentioned on the ICICI website, as the 0.7% fixed bonus only lasts until 31 Jan 2019. As there's less than a year to get the bonus, it's effectively now 0.57%. |
Best BuysCurrent Account Savings
Rates are much lower on these accounts than in previous years. Yet you can still beat the easy-access rates above on small amounts, and some even offer security of rate, crucial in these turbulent times. Nationwide's rate's fixed at 5% (though only for a year) and Tesco Bank guarantees at least 3% interest until April 2019.
The beauty of fixes is, once the account's opened, these are locked in, regardless of base rate cuts or banks dropping rates at whim. Do be aware, though, if an account has a variable rate as this provides no certainly and could change at any time (though once you have the account, you'll get 60 days' notice).

Get 5% interest on £2,500 FIXED for 12 months, though only 1% afterwards
Nationwide FlexDirect
Switch to the Nationwide FlexDirect account and you'll get an interest rate of 5% AER on the first £2,500 of your cash. This rate is fixed for the first year you hold the account, giving you certainty in these uncertain times, but it drops to 1% after, which isn't such a good deal.
Unusually for a current account with perks, you don't have to set up any direct debits, you can just open this account as an extra.
Need-to-knows
The initial rate is fixed, so provided it's still at 5% when you apply for the account, you know that's the rate you'll get for the first year.
To get the interest, you'll need to pay in £1,000+ per month.
This account also offers a 12mth 0% overdraft, though the limit you get is credit score dependent. After the 12 months, it charges 50p per day for the overdraft.
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You need to pass a credit check to get this account.
- Nationwide has the full £85,000 UK savings safety guarantee.

Tesco pays 3% guaranteed on £3,000 until at least Apr 2019 (and you can open two)
Tesco Bank
The Tesco Bank Current Account pays 3% AER variable on the first £3,000, but you can open two accounts, so could get 3% on up to £6,000 (a couple can save £12,000 in four accounts). Plus, Tesco Bank has guaranteed the rate will be a minimum of 3% until 1 April 2019.
However, to get the interest you must pay in £750 and pay out at least three direct debits every month. If you've two accounts, you must meet this criteria for each account.
As an extra perk, you get Clubcard points on debit card spending. The number you can earn in Tesco will be quadrupled for two years until 1 April 2019, from 1 per £4 to 1 per £1 – good if you're a Tesco shopper. For example, if you spend £80/week in Tesco, you get 80 extra points per week (4,160/yr). The extra is usually worth £41.60 in Clubcard points, but you can boost that to £166, and this is on top of the points you'd normally collect.
Need-to-knows
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The interest rate is guaranteed to be a minimum of 3% AER until 1 April 2019.
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You can open two of these accounts, so it's possible to earn 3% on up to £6,000.
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You must pay in £750 a month and make three direct debit payments every month. Direct debit payments to Tesco savings accounts do not count.
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You'll get one extra Clubcard point per £4 spent in Tesco (boosted to 1 per £1 for two years until 1 April 2019), and one point for every £8 spent elsewhere.
- Service is good, with 71% of Tesco Bank customers in our recent poll rating it 'great', though we had a limited number of votes.
- You need to pass a credit check to get this account.
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Tesco Bank has the full £85,000 UK savings safety guarantee.
Other top interest-paying current accounts
It's not just these accounts that offer decent interest rates. Several other accounts give you varying levels of decent interest (see below), and the one you pick should depend on how much cash you're likely to be able to keep in your account.
Be wary of these accounts though. While we've marked below where we know account rates or perks are under review, any bank could choose to cut its rate or change its deal at any point.
The top current account savings interest
For comparison, the top easy-access savings deal open to all pays just 1.25%. | ||||
In-credit interest (AER) | Max interest /yr (1) | Min monthly pay-in | How many can you have? | |
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TSB Classic Plus(2) | 3% on up to £1,500 | £44 | £500 | 2 (2nd must be joint) |
Bank of Scotland Vantage | 2% on up to £5,000 (3) | £99 | £1,000 | 3 |
Club Lloyds | 2% on up to £5,000 (3) | £99 | £1,500 | 2 (2nd must be joint) |
Halifax | £3/mth (4) | £36 | £750 | 2 (2nd must be joint) |
(1) Before any tax if you always held the max balance+. (2) TSB is currently not accepting applications for its current account due to IT upgrades. We'll update this guide when applications re-open. (3) Dropping to 1.5% AER on 1 July 2018. (4) Paid regardless of balance, as long as you stay in credit. The £3 is classed as after having paid basic rate tax. So higher taxpayers will lose some of the gain. |
Do note there are bank accounts which will pay you £100+ to switch, which beat some of the accounts below in the first year – especially as many of them also have 5% regular savers. See a full list of accounts that pay you to switch and the top regular savings accounts.
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Best BuysNotice savings accounts
You can sometimes boost the interest rate from the easy-access accounts above if you're able to wait a little to get your hands on your savings. Generally, the more notice you can give, the better the rate you'll get.

Boost your interest rate, but only if you can wait for your cash
Secure Trust Bank – 1.46% AER Variable
The 90-day notice account from Secure Trust Bank allows you to boost rates to beat easy-access deals, but you must give 90 days' notice before each cash withdrawal – so only get this account if you'd never need the money in an emergency.
If you're happy to give a longer notice period, Secure Trust also offer a 120-day notice account paying 1.56% AER variable and a 180-day account at 1.66% AER variable – though if you can lock away your cash for a year, consider one-year fixed savings accounts instead.
Need-to-knows
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You must open the account online and can manage it online or by phone.
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You can make three capital and four interest withdrawals per calendar year, though you must give 90 days' notice each time.
- Interest is paid quarterly on 31 March, 30 June, 30 September and 31 December
- You must deposit at least £1,000 to open the account.
- Secure Trust Bank has the full £85,000 UK FSCS savings safety protection.
Quick question
Do I always have to give notice on these accounts?
The short answer's yes. The clue is in the name.
You may find a few notice accounts will allow you immediate (or at least sooner) access to your funds, and charge you an interest penalty for 'breaking the rules'. But these are few and far between.
It's much safer if you think you might need immediate access to your cash to opt for an easy-access account.
Best BuysFixed-rate bonds
Most savings accounts are variable, so the rate can change both with the Bank of England's base rate or at the provider's whim – so to keep earning well you need to actively monitor accounts. Yet there is an alternative...
Don't be scared by the name, fixed-rate bonds are just savings accounts which give a guaranteed rate for a set period. The best buy fixed-rate deals are almost always higher than the best buy easy-access rates.
The big catch is you can't take your money out during that time, and you won't benefit if other rates rise in that period. Therefore, they're only suitable for those who are happy to lock cash away for the entire term.
The exceptions are the one-year and three-year NS&I bonds, which allow you to withdraw your money subject to 90 days' loss of interest on the amount taken out.
Quick questions
Is now the right time to fix savings?
It's difficult to say. The Bank of England raised interest rates from their historic 0.25% low in November 2017, though only by 0.25 percentage points and it indicated further rate rises would be slow and gradual.
However, if you are thinking of locking in, it's best to do it for a short time, then you don't lose out for long if rates do go up during the period of your fix (by fixing you lose the flexibility to ditch and switch to a better payer).
Whatever you choose to do, it's important to go into fixed-rate savings with your eyes open and know the risks. Of course, if rates don't rise again in the short term, and you pick well, you will earn more in a fix in the meantime.
Why do you list the AER interest rate when not all of these accounts pay it?
We list the AER as it's the best way to compare rates, rather than listing some accounts at the AER, and some at a gross rate of interest.
The difference comes in the way these accounts pay interest. Most pay interest into the fixed account itself, meaning you get interest on that interest in subsequent years.
But Metro Bank, Tesco Bank and Secure Trust Bank pay interest in to separate accounts, meaning that you don't earn interest on the interest, and therefore the actual rate of interest you get is slightly lower than the AER.
I know these are fixed savings, but can I access my cash?
No. With fixed savings, you lock away the cash in return for a better reward other than in extremely rare circumstances.
Think – for a second – about it from the bank's point of view. If it knows it has your cash for three years, say, then it can lend that out for a three-year period safe in the knowledge you won't demand it back. It has the certainty of holding your cash, and you have the certainty about the rate you get.
This certainty is the reason the rate is higher. And this is also the reason that easy-access savings tend to be poor payers in comparison.
How do I get paid interest monthly?
When using fixed-rate savings, you won't usually get paid monthly interest (though some accounts offer this). Therefore many who rely on interest earned from savings as an income stream don't fix, even though they pay higher rates. Yet there's a workaround.
Here's an example (ignoring tax for ease of explanation)...
You've £100,000 and can get 2% in a year-long fixed account and 1.3% in an instant access account. You'd like roughly £2,000 of interest from these savings to supplement your income.
Put £98,000 in the fixed account, and £2,000 in the instant access. Then spend the instant access money over the year, knowing the £1,960 interest earned in the fixed account will just about make up for it. Then you're effectively getting the higher 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, 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.
The best UK-protected fixed-rate accounts
Here we've included the best UK-protected accounts that pay a fixed rate of interest, from one to five years.
The best one-year fixed rates
Product | Rate (AER) | Interest paid | Min/Max Deposit | How to Open | FSCS Protection |
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Wyelands Bank*![]() |
1.85% | Annually or monthly | £5,000/£1million | Online | Full |
United Trust Bank![]() |
1.85% | At maturity | £5,000/£1million | Online | Full |
Secure Trust Bank![]() |
1.83% | Annually and at maturity | £1,000/£1 million | Online | Full |
The Secure Trust account matures on 29 April 2019. |
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Best 'Big Brand' Savings. While all the accounts above have the full £85,000 UK savings safety protection – you asked us to ensure there's a 'name you know' too. The account below is the top payer of those (however, there are other products – albeit not by well-known names – as well as the ones above, that beat it on rate too). | |||||
NS&I |
1.5% | Annually | £500/£1 million | Online | 100% of your cash is protected |
The NS&I bond allows withdrawals subject to 90 days' loss of interest on the amount withdrawn. |
The best two-year fixed rates
Product | Rate (AER) | When is interest paid? | Min/Max Deposit | How to Open | FSCS Protection |
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Wyelands Bank*![]() |
2.15% | Annually or monthly | £5,000/£1million | Online | Full |
Secure Trust Bank![]() |
2.1% | Annually and at maturity | £1,000/£1 million | Online | Full |
The Secure Trust account matures on 29 April 2020. |
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Tandem![]() |
2.1% | Annually | £1,000/£2.5million | Online | Full |
With Tandem, interest is paid to your linked current account. |
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Best 'Big Brand' Savings. While all the accounts above have the full £85,000 UK savings safety protection – you asked us to ensure there's a 'name you know' too. The account below is the top payer of those (however, there are other products – albeit not by well-known names – as well as the ones above, that beat it on rate too). | |||||
Sainsbury's Bank*![]() |
1.85% | Annually or monthly | £5,000/£1 million | Online | Full |
The best three-year fixed rates
Product | Rate (AER) | When is interest paid? | Min/Max deposit | How to open | FSCS protection |
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Vanquis Bank*![]() |
2.3% | Annually or monthly | £1,000/£250,000 | Online | Full |
Tandem![]() |
2.3% | Annually | £1,000/£2.5million | Online | Full |
With Tandem, interest is paid to your linked current account. |
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Hodge Bank![]() |
2.25% | Annually or monthly | £1,000/£1million | Online/ post | Full |
Best 'Big Brand' Savings. While all the accounts above have the full £85,000 UK savings safety protection – you asked us to ensure there's a 'name you know' too. The account below is the top payer of those (however, there are other products – albeit not by well-known names – as well as the ones above, that beat it on rate too). | |||||
NS&I |
1.95% | Annually | £500/£1million | Online | 100% of your cash is protected |
The NS&I bond allows withdrawals subject to 90 days' loss of interest on the amount withdrawn. |
The best four-year fixed rates
Product | Rate (AER) | When is interest paid? | Min/Max Deposit | How to Open | FSCS Protection |
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Vanquis Bank*![]() |
2.47% | Annually or monthly | £1,000/£250,000 | Online | Full |
The best five-year fixed rates
Product | Rate (AER) | When is interest paid? | Min/Max deposit | How to open | FSCS protection |
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Secure Trust Bank![]() |
2.65% | Annually and at maturity | £1,000/£1 million | Online | Full |
The Secure Trust account matures on 3 May 2023. |
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Vanquis Bank*![]() |
2.65% | Annually or monthly | £1,000/£250,000 | Online | Full |
United Bank UK![]() |
2.65% | Annually, monthly or at maturity | £2,000/£1million | Post | Full |
Best 'Big Brand' Savings. While all the accounts above have the full £85,000 UK savings safety protection – you asked us to ensure there's a 'name you know' too. The account below is the top payer of those (however, there are other products – albeit not by well-known names – as well as the ones above, that beat it on rate too). | |||||
Sainsbury's Bank*![]() |
2.1% | Annually or monthly | £5,000/£1 million | Online | Full |
Higher fixed savings with a but...
If you can buck convention you can earn more with fixed savings. All the accounts above are straightforward deals, yet a few other accounts do pay more, but with a but. So we'll only list accounts here that beat the normal best buys.
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Sharia-compliant accounts – fully UK protected, but rate not guaranteed. Some top-paying fixed bonds are from a sharia-compliant Islamic bank.
As Islam bars interest, instead of an interest rate they give an 'expected profit rate' – this has always been paid out by the banks listed below, though by definition it can't be certain.
So if you've £25,000+, BLME pays an expected 1.95% for one year. If you've less, Al Rayan Bank pays an expected 1.86% (min £1k). Both banks have the full UK £85,000 per person savings safety protection.
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Best Buys Ethical savings
Ethical savings accounts – where providers claim to 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.
When giving a bank or building society an ethical rating, Ethical Consumer looks at its track record on various environmental, social and political issues. For banks and building societies, this not only looks at how the business is operated, but also who their investors are, and what they invest in.

Ethical easy-access savings
These easy-access accounts are just the same as the ones above, but here we list only accounts from ethical providers.
Ethical easy-access top pick: 1.21% AER
All the accounts below have the full £85,000 UK FSCS savings safety guarantee.
Ethical Rating 11.5/20
1.21% AER variable – Unlimited withdrawals
The Easy Access savings account from Kent Reliance pays 1.21% AER variable as long as you've at least £1,000 in the account. You can open and operate the account online, by post or in branch.
Ethical fixed-rate bonds
Again, these operate the same way as normal fixed savings, there's nothing special about what you have to do, but we only list ethical providers here.
Earn up to 1.65% AER fixed in an ethical bank
All the accounts below have the full £85,000 UK FSCS savings safety guarantee
Ethical Rating 11.5/20
1.65% AER fixed for one year
The Kent Reliance one-year Fixed Rate Bond pays 1.65% AER on balances over £1,000. You can open and operate the account online, by post or in branch.
Ethical Rating 11.5/20
1.85% AER fixed for two years
Kent Reliance pays 1.85% AER on balances over £1,000 in its two-year Fixed Rate Bond. You can open and operate the account online, by post or in branch.
The Savings Calculator
This multifunctional calculator allows you to calculate how much interest you'll be paid, how long you'll need to save for something, or tell you how much you need to save each month to meet a goal.
You might get one rate now, but unless you've fixed your rate, it's likely you won't get the same rate in a year – so you may need to redo the calculation then.
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 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.
Want to complain about your savings provider?
If your savings provider has given you the incorrect interest rate, or you haven't received your interest at all, then you don't have to suffer in silence. It's always worth trying to call your provider first to see if it can help, but if not...
Free tool if you're having a problem
This tool helps you draft your complaint and manage it too. It's totally free, and offered by a firm called Resolver, which we like so much we work with to help people get complaints justice.
If the complaint isn't resolved, you can use Resolver to escalate it to the free Financial Ombudsman Service.
Q&A Savings
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What's the top account for joint savings?
This is a commonly asked question but almost every savings account can be set up as a joint account, so actually the question should just be "what is the best savings account?", which this guide is set up to answer.
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Are there savings accounts designed for my business?
If you have a business current account, the chances are it pays 0% interest. So any businesses with cash stored, even just to pay the taxman, are missing out on interest.
If you're a sole trader, you're likely to be able to save the businesses' cash in a personal savings account. It's best to do this, as you get the best rates. But if you've a limited company, then you will need to use a specially designed business savings account.
For more information on how you can max the interest for your business, and to see the current top rates, read the Small Business MoneySaving guide.
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Haven't you forgotten about inflation-linked savings?
We haven't. But, sadly, there aren't actually any accounts offering inflation-linked savings at the moment.
In fact, currently, most savings accounts don't pay more than the rate of inflation. So you're actually losing money, as prices are increasing faster than your savings are growing.
Inflation-linked savings work in a similar way to fixed-rate accounts. Your money is locked away, but you're paid the percentage change in inflation. Usually there is also a fixed amount on top of this rate, so even if inflation becomes negative (deflation), you'd still get some increase on your balance over the term.
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How does inflation affect my 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 ...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 savers.
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What about when there's deflation?
Deflation is when the rate of inflation goes negative, meaning overall prices are lower than a year ago. This, or very low inflation, can actually be a boon to savers. Look at the contrast between inflation and deflation...
When inflation's high..
Suppose inflation is at 5.0% and the best savings account pays 6.5%. Sally Saver has £10,000 in her account, enough to buy a nominal 100 shopping trolleys of food/shoes/washing machines.
Calculating over a year for ease, her savings would grow to £10,650. Yet inflation means the shopping basket has increased in price to £10,500. Thus Sally's spending power has only increased by £150; her real interest rate was just 1.5%.
When there's a deflationary period....
Deflation has set in, with the inflation rate at minus 2%, while savings rates have further slumped too, offering just 1.5% interest. Here, after a year Sally's ten grand's only grown to £10,150, yet deflation means the shopping trolleys now only cost £9,800.
This means she could buy them and have £350 left over, giving a real interest rate of roughly 3.5%. So even though her interest's plummeted, she's actually better off.This has remarkable consequences. Far too many have a concrete savings mindset that shouts "don't spend your capital!" Yet in a deflationary environment that's too rigid; anyone living off savings interest would face huge cuts in their income, and not spending capital would actually be penalising yourself.
Personal rates of inflation do vary, yet if you're experiencing deflation, and need to spend from your savings pot, you can do so without hurting your savings pile. Take the capital out at the rate of deflation, and you're not losing anything as your purchasing power is retained.
Savings Safety
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
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 this amount, as if you needed to claim compensation you wouldn't have instant access to your cash.
The exact rules about what counts as 'UK regulated', the links between institutions, and joint accounts make it more complex. For full info see the detailed Are Your Savings Safe guide.