The main differences is online savings account or internet savings account can be managed over the internet at any time, which can be convenient if you are unable to visit a branch.

Providers of online savings account also claim they offer better rates compared to traditional accounts.

How to find the right online savings account

When looking for the best online savings account, think about:

  • The interest rate

  • How often you need to access your money

Knowing this makes it easier to find the right account for you.

Check the types of online savings accounts available

There are several types online accounts, including:

  1. Instant access: You can pay in or withdraw money at any time.

  2. Regular savings: Requires depositing a set amount regularly. Interest rates and access depend on the provider and how the account is managed.

  3. Fixed rate: Your money is locked for a set period, normally 1-5 years.

  4. ISAs: A tax free way of saving where no tax is paid on the interest you earn. You have an annual allowance that limits how much you can save in an ISA, which can vary depending on the type of ISA you hold e.g. Cash ISA, Junior ISA, Lifetime ISA.

Our comparison shows the account types and interest rates offered by different providers.

Things to check before you get an online savings account, uk wide

Before you apply, look out for:

  1. Minimum and maximum deposits: Some online savings accounts limit the amount you can pay in. There can also be limits on how much can be kept in the account.

  2. Interest rate: This can vary depending on the account type e.g instant access accounts generally have lower rates compared to other savings accounts.

  3. Introductory offers: Attractive interest rates may only be for a set period, before dropping significantly e.g. 5% for the first 12 months.

  4. Penalties: You may be charged for withdrawing funds from your internet savings account, e.g moving cash from a 5 year fixed savings account before the term ends.

Check the terms and conditions, this will allow you to work out if an account is right for you.

Shop around and compare accounts to find the best online savings account for you

Think about what you want from a savings account before comparing products offered by different providers.

Once you know this look for an online savings account that meets your criteria and offers the highest interest rate.


Can I open a joint online savings account?


Yes, many providers will allow you to open a joint account.


Will I be taxed on my online savings?


Possibly, it depends on how much interest you earn and the account you choose. For more information read How does savings interest and tax work?


Will my money be protected in an online savings account?


Most providers are covered by the Financial Services Compensation Scheme (FSCS) which protects up to 85,000 kept in a single organisation.


Can I have more than one online savings account?


Yes, but you can only have one ISA of each type per tax year.. Read our guide on choosing the right savings account