Top Savings Accounts

What is a savings account? Plus 9 more savings need-to-knows

A savings account is basically just a place to dunk cash in 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, with other variations too. But don't just go for the headline screaming the highest rate without first examining how it works and what the alternatives are.

Rather watch than read? This helpful little video gives you the easy-access savings lowdown...

• Savings interest is now paid tax-free, but some still need to pay tax

  Since April 2016, the personal savings allowance (PSA) means:

  • All savings interest is paid gross, ie, there'll be no tax taken off.
  • 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 takes 95% of people out of paying savings interest tax altogether. For full info see our how the personal savings allowance works guide.
  
  Already used your personal savings allowance? Consider a cash ISA as you never pay tax on the interest. Anyone aged 16 or over can put up to £20,000 in 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.
  
  In a couple and in different tax bands? 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.
  
  

• 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. See 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.

• 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 – commonly £10,000 a year or 10% of the value of your mortgage debt each year.

  It's important to check how it plans to use your overpayment. Some lenders will 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. Ask to reduce the balance 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.

• 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. 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.

• 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.

• 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.

• Can you lock the cash away? Fixed-rate accounts give a (slightly) better return

  You may want to consider getting a fixed-rate account – 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, but 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 accounts section.

• Up to £85,000 in savings per person is safe in UK-regulated accounts

  After the calamities that hit big banks such as Northern Rock, RBS, and the Lloyds group, every sensible saver should ask: "Is my money safe?" If it is in a UK-regulated bank or building society, it's protected under the FSCS for up to £85,000 per person. See the Are My Savings Safe? guide.

  Quick question

  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?

• 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.

Best easy-access savings

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. 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 (show allhide all)

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 month. Terms vary, so always know what taking out your cash will cost, 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
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 but you can only access your cash once a year

Yorkshire BS – 1.41% AER variable

The Single Access Saver from Yorkshire BS pays 1.41% and you can open it with £100.

However, the account isn't for everyone as you can only make one withdrawal per year. If you do want to access your cash after making a withdrawal you must close the account.

1.41,1

Need-to-knows

• A withdrawal year is based on the anniversary of opening your account.
• Can be opened by post or in branch, and managed online, by post or in branch.
• Yorkshire BS shares its £85,000 UK FSCS savings safety protection.

APPLY

SUMMARY:

Rate: 1.41% AER variable | Min deposit: £100 | Max deposit: £2 million | Access: Online/ post/ branch | Interest paid: Annually or monthly | Withdrawals: One/yr

Good rate and you can open with £1, but limited withdrawals

Coventry BS – 1.4% AER variable

The Limited Access Saver from Coventry BS pays 1.4%, including a fixed 0.25% bonus for 12 months. After this, the rate will drop – so be prepared to switch away when this happens.

You can open this account with £1, but to earn the headline interest rate you can't make more than three withdrawals a year. If you do, you'll pay a penalty of 50 days' interest on the amount you withdraw.

1.4,1

Need-to-knows

• Can be opened online, post or in branch, and managed online or by phone.
• Coventry BS has the full £85,000 UK FSCS savings safety protection.

APPLY

SUMMARY:

Rate: 1.4% AER variable (incl 0.25% bonus for 12mths) | Min deposit: £1 | Max deposit: £250,000 | Access: Online/phone | Interest paid: Annually or monthly | Withdrawals: Three/yr

Highest rate from a big name and you can make unlimited withdrawals

AA Savings* – 1.36% AER variable

The AA* Easy Saver pays 1.36%, including a fixed 1.16% bonus for 12 months. The account allows unlimited withdrawals and can be opened with £100.

As the account includes a temporary bonus, the headline interest rate won't last more than a year, so prepare to switch when the bonus rate ends.

1.36,100

Need-to-knows

• Can be opened online and managed online or by phone.
• If you're an AA member you can earn a slightly higher 1.37% AER with its Member Saver*.
• AA savings shares its £85,000 UK FSCS savings safety protection with Post Office and Bank of Ireland UK.

APPLY*

SUMMARY:

Rate: 1.36% AER variable (incl 1.16% bonus for 12mths) | Min deposit: £100 | Max deposit: £2 million | Access: Online/ phone | Interest paid: Annually | Withdrawals: Unlimited

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
Kent Reliance	1.37% (1)	£1,000/£1 million	Online/ branch	Unlimited	Full
Bank of Cyprus UK	1.36% (incl 0.36% bonus for 12mths)	£1/£1 million	Online	Unlimited	Full
Virgin Money	1.36%	£1/£250,000	Online	Two/yr (2)	Full
Sainsbury's Bank	1.35%	£1,000/£500,000	Online	Three/yr (3)	Full
Tesco Bank	1.31% (incl 0.76% bonus for 12mths)	£1/£1 million	Online	Unlimited	Full
Shawbrook Bank	1.3%	£1,000/£85,000	Online/phone	Unlimited	Full
Ford Money	1.29%	£1/£2 million	Online	Unlimited	Full
(1) If your balance drops below £1,000, you'll earn just 0.1% interest. (2) You can only make two withdrawals per calendar year and account closure also counts as a withdrawal. (3) If you make four or more withdrawals a year or your balance drops below £1,000, you'll earn just 0.5% interest.

Best current 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 fixing the rate.

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. Be aware, though, if an account has a variable rate it could change at any time (you'll get 60 days' notice). As these are bank accounts, you'll have to pass a credit check to open one.

Get 5% interest on £2,500 FIXED for 12 months, though only 1% afterwards

Nationwide FlexDirect*

Open a 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.

• You need to pass a credit check to get this account.

• Nationwide has the full £85,000 UK savings safety guarantee.

APPLY*

SUMMARY:

Rate: 5% AER fixed on up to £2,500 for 12mths; 1% AER variable after | Min deposit: £1,000 per calendar month to get the interest | Max deposit: None, interest only paid up to £2,500 | Access: Online, branch or by phone | Interest paid: Monthly | Withdrawal restrictions: None

KEY QUESTIONS:

How do I get the interest? To get interest, you need to pay in £1,000 a month.

What if I can't pay in £1,000? Nothing happens, you just won't be paid any interest that month.

How much will the overdraft cost? For the first year, your overdraft will cost nothing so long as you stay within your limit. After that, you pay 50p per day you're overdrawn (within your limit). So, if you have a limit of £1,500 and owe £1,000, then you'll pay £182.50 if you're overdrawn every day of the year.

Don't bust your overdraft limit, as you'll pay £5 per day plus a charge of £5 for every paid or unpaid item.

Can I have two accounts? And two overdrafts? You can definitely have two accounts, and can even get two lots of interest – though one of your accounts must be joint to get this. Nationwide say that you may be able to get two overdrafts if you have two FlexDirect accounts, but each would be assessed on its merits, so there's no guarantee.

Get 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

• The interest rate is guaranteed to be a minimum of 3% AER until 1 April 2019.

• You can open two of these accounts, so it's possible to earn 3% on up to £6,000.

• 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.

• 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.

• Tesco Bank has the full £85,000 UK savings safety guarantee.

APPLY

SUMMARY:

Rate: 3% AER variable under £3,000. Nothing above. | Min deposit: £750 per statement month | Max deposit: None, interest only paid up to £3,000 | Access: Online | Interest paid: Monthly | Withdrawal restrictions: None

KEY QUESTIONS:

How much interest can I earn? You can earn 3% AER on the first £3,000 you have in the account, but no interest on anything over that amount. Put and keep the full £3,000 in, and you'll get £88.80.

How many Clubcard points could I get? On top of your normal Clubcard points, you'll also earn 1 point per £1 spent in Tesco and 1 point per £8 spent elsewhere on your Tesco debit card until 1 April 2019. We've crunched the numbers to see how much this could be worth, assuming you take advantage of Clubcard Boost to get 4x value for your points.

Annual spend	£3,000	£5,000	£10,000	£20,000
Number of Clubcard points earned (1)	1,030	1,720	3,440	6,870
Value of Clubcard points (2)	£41	£68	£137	£275
(1) Assumes 25% of spend in Tesco and 75% elsewhere. (2) Assumes you use Clubcard Boost to get 4x value.

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.

For comparison, the top easy-access savings deal open to all pays just 1.35%.
	In-credit interest (AER)	Max interest /yr (1)	Min monthly pay-in	How many can you have?
TSB Classic Plus (2)	5% on up to £1,500	£74	£500	2 (2nd must be joint)
Bank of Scotland Vantage	1.5% on up to £5,000	£74.50	£1,000	3
Club Lloyds	1.5% on up to £5,000	£74.50	£1,500	2 (2nd must be joint)
Halifax	£3/mth (3)	£36	£750	2 (2nd must be joint)
(1) Before any tax if you always held the max balance+. (2) Warning. TSB is currently not accepting applications for its current account due to IT problems. We'll update this guide when applications re-open. (3) 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. (4) Dropping to £2/mth from 1 October.

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.

Best fixed-rate accounts

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...

Fixed-rate accounts (also known as '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.

Rather watch than read? This helpful little video gives you the fixed-savings lowdown...

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.

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
Want a shorter fix? The Raisin 9mth fix below pays up to £80 cashback on a 1.8% fix. While it falls short of the rates below, it's still a decent option if you'll need earlier access.
ICICI Bank UK	2.02%	At maturity	£1,000/No max	Online	Full
Charter Savings Bank	2.01%	Annually or monthly	£1,000/£250,000	Online	Full
OakNorth	2.01%	At maturity	£1,000/£250,000	Online	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).
Co-op Bank	1.71%	Annually or monthly	£1,000/£1 million	Online/ phone/ branch	Shared (1)
(1) Co-op Bank shares its £85,000 UK savings safety protection with Smile and Britannia.

Raisin: Earn up to £80 on 1.8% nine-month fix

'Savings marketplace' Raisin offers cashback when you open a savings account through it and deposit at least £10,000. It offers a range of accounts from some (though far from all) providers. Right now, there is one top pick offering cashback.

A £20 bonus is available if you deposit £10,000 - £19,999, £40 bonus on £20,000 - £39,999 or an £80 bonus if you've £40,000+.

- Earn 1.8% on a nine-month fix, plus up to £80 cashback. The nine-month savings account from ICICI Bank* pays 1.8% AER on £1,000 - though you'll only earn cashback if you save £10,000+. While on most occasions, the rate with cashback will be beaten by the one-year accounts above (on a month-by-month basis), if you don't want to lock your money away for a full year, it's still a decent option.

How does it work?

To get the bonus you must follow these steps:

1. Sign up online to Raisin* (or log-in if you're an existing customer).
2. Open an ICICI bond through Raisin.
3. Pay in at least £10,000 within five working days of opening it. You'll need to do a bank transfer to Raisin's partner Meteor Investment Management (MIM) account, which is with RBS. MIM administers the payment and is regulated by the Financial Conduct Authority. It'll then send the money to ICICI within three working days, when it'll start earning interest.
4. Important. Annoyingly, you have to claim the bonus. Email bonus@raisin.co.uk from the address you signed up with within 30 days of funding your account. You need to include the subject line 'Bonus', plus your name and the amount you're eligible to claim.

The bonus will be paid within 60 days.

This is complex, so we've more info on how it works...

What is Raisin?

Raisin describes itself as a 'savings marketplace' – it has partnerships with various banks, which is how it makes its money. You set up a Raisin account, and can then apply for a variety of fixed-term savings accounts through it – meaning you only need to enter your details once.

It launched in Germany in 2013, expanding to the UK earlier this year, and has backing from investors including PayPal.

Are my savings safe?

When you open an account through Raisin, your payments are processed by Meteor Investment Management (MIM) and Meteor Asset Management, which then pass your money to the bank whose account you're opening. So if you open the ICICI one-year account, your money will then be covered by ICICI's £85,000 FSCS protection.

Technically your money is held in trust in an MIM client account with RBS. Yet the FSCS has confirmed in this type of structure you still get the UK £85,000 per person, per institution savings safety protection of the account provider, ie, ICICI (in the few days before it gets to ICICI it's via RBS's protection).

Be aware that not all banks Raisin has partnered with are covered by the FSCS – some are protected by European deposit schemes, so it could be harder to get your money back if the bank went bust. For more on how savings are protected, see Are Your Savings Safe?

Important – you'll need to take action after a year

Raisin will email you 30 days before your fixed term ends, asking what you want to do with the money. You can choose to get it paid back to your bank account or to open another product with Raisin – remember it won't necessarily offer the best rates so check before opening another account.

If you do nothing, the money will be returned to MIM until you tell Raisin what to do – so you need to make sure you respond to the email you get to decide what to do with your money or it'll be sitting earning zero interest.

Is there anything else I should know?

If you have any issues with your account, you need to contact Raisin directly, which you can do by email, phone or secure messaging when logged in online.

Raisin only has links with a few banks at the moment, and so its offering is not whole of market – this means there may be other providers offering better rates. Before you sign up to a new account through the Raisin platform, you should check this guide to see if the rate can be beaten.

The best two-year fixed rates

Product	Rate (AER)	When is interest paid?	Min/Max Deposit	How to open	FSCS Protection
Tandem	2.25%	Annually	£1,000/£2.5million	Online	Full
Investec	2.25%	Annually or monthly	£25,000/£1million	Online	Full
Charter Savings Bank	2.24%	Annually or monthly	£1,000/£250,000	Online	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).
Tesco Bank	2.01%	Annually or monthly	£2,000/£5 million	Online	Full

The best three-year fixed rates

Product	Rate (AER)	When is interest paid?	Min/Max deposit	How to open	FSCS protection
Charter Savings Bank	2.41%	Annually or monthly	£1,000/£250,000	Online	Full
Tandem	2.4%	Annually	£1,000/£2.5million	Online	Full
Masthaven	2.36%	Annually or monthly	£500/£250,000	Online	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).
Tesco Bank	2.21%	Annually or monthly	£2,000/£5 million	Online	Full

The best four-year fixed rates

Product	Rate (AER)	When is interest paid?	Min/Max Deposit	How to open	FSCS Protection
Masthaven	2.53%	Annually or monthly	£500/£250,000	Online	Full
Vanquis Bank	2.52%	Annually or monthly	£1,000/£250,000	Online	Full

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 £85,000, 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.

Close

The best five-year fixed rates

Product	Rate (AER)	When is interest paid?	Min/Max deposit	How to open	FSCS protection
Charter Savings Bank	2.7%	Annually or monthly	£1,000/£250,000	Online	Full
Masthaven	2.69%	Annually or monthly	£500/£250,000	Online	Full
PCF Bank	2.68%	Annually or at maturity	£1,000/£250,000	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).
Tesco Bank	2.5%	Annually or monthly	£2,000/£5 million	Online	Full

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 £85,000, 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.

Close

Best notice savings accounts

If you don't want to lock away your cash for up to a year, notice accounts could be a winner instead. 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

OakNorth – 1.77% AER Variable

The 90-day notice account from OakNorth 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 can wait longer to access your cash, you can get a slightly higher rate. OakNorth also offers a 120-day notice account paying 1.79% AER variable.

1.76,1000

Need-to-knows

• You must open and manage the account online.

• You can make unlimited withdrawals of £1,000 or more from this account, though you must give the relevant days notice.
• OakNorth has the full £85,000 UK FSCS savings safety protection.

APPLY

SUMMARY:

Rate: 1.77% AER variable | Min deposit: £1,000 | Max deposit: £250,000 | Access: Online | Interest paid: Monthly | Withdrawals: Unlimited

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.

Get Our Free Money Tips Email!

For all the latest on savings, plus more deals, guides and loopholes, join the 10m who get it. Don't miss out.

FAQs | Unsubscribe | Past Emails | Privacy

Best 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: 1.4% AER

All the accounts below have the full £85,000 UK FSCS savings safety guarantee.

Ethical Rating 13.5/20

1.4% AER variable – Limited withdrawals

The Limited Access Saver from Coventry BS* pays 1.4% AER variable on £1+, but you can only make three withdrawals a year to earn the headline rate of interest. You can open the account online, by phone, post or in branch and manage it online or by phone.

Ethical fixed-rate accounts

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 2.05% 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

1.9% AER fixed for one year

The Kent Reliance one-year Fixed Rate Bond pays 1.9% AER on balances over £1,000. You can open and operate the account online, by post or in branch.

Ethical Rating 11.5/20

2.05% AER fixed for two years

Kent Reliance pays 2.05% 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...

Q&A Savings