Compare savings accounts
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What type of account are you looking for?
What is a savings account?
A savings account is a type of account with a bank or building society in which you deposit money on a regular basis to earn a return through interest. The amount of interest you earn varies depending on the the kind of savings account you choose. There may be also be limits to how often you can withdraw money from the account.
Best savings rates today - last updated Oct 13 2024
| Product type | AER | |
|---|---|---|
| Instant access savings | 5.00% | |
| Notice savings | 5.05% | |
| Cash ISAs | 4.87% | |
| 1 year fixed rate bond | 4.85% | |
| 5 year fixed rate bond | 4.27% | |
| Fixed rate bond | 4.87% |
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Which is the best savings account for you?
Choosing the best savings account can be confusing as there are so many different types to choose from. Our comparison table shows many of the savings accounts you can get online, over the phone or by visiting a branch.
But the important thing to remember is that there isn’t one ‘best’ savings account for everyone. Every account has different requirements and every person’s circumstances are different. You’ll need to find the best one for you, based on which features suit your financial situation.
Who can open a savings account?
To open a savings account, you have to be:
18 or over
A UK resident.
However, you can open a cash ISA when you're just 16 years old.
Are there any tax-free savings accounts?
Independent Savings Accounts (ISA) are examples of tax-efficient savings accounts. These let you save money, without paying tax on any interest you make. They'll often offer you some of the best savings interest rates too. But remember that you're restricted on how much you can pay by the ISA allowance.
Each person has an ISA allowance for each tax year (6 April - 5 April). For the 2021/22 tax year, that allowance is £20,000.
Tax-free savings accounts include:
Are there any high-interest savings accounts?
Currently, with the Bank of England base rate being so low, high-interest savings accounts are difficult to find. But that doesn't mean there aren't competitive rates out there.
Once the base rate rises again, you're more likely to see a return of high-interest savings products to return to the market.
What are the pros and cons of savings accounts?
Like most financial products, there are some advantages and disadvantages to savings accounts:
- They’re easy to open
- Accrue interest so you make your money work for you
- Some allow easy withdrawals when you need to
- You can open some with just a £1 initial deposit
- Are protected by then FSCS
- Interest rates at the moment are low
- Some accounts may charge a penalty for withdrawing your money
- Your account's interest rate can vary over time
- Some accounts might have monthly fees
- The amount you can save might be limited
What is the personal savings allowance?
The Personal Savings Allowance is the amount of interest that most people can earn tax-free from their savings account.
If you're a basic rate taxpayer:
You can avoid paying tax on the first £1,000 of interest earned from your savings accounts.
If you're a higher rate taxpayer:
The maximum you can earn in interest from savings accounts without paying any tax is £500. That said, you’re unlikely to make this much, even with a high-interest savings account. Fewer than 5% of people have sizeable enough savings to concern themselves about paying tax on any interest earned.
If you are likely to use up all of your Personal Savings Allowance, however, you could consider saving money in a cash ISA. You’re not liable for any tax on the interest you earn from cash ISAs.
Find out more about how tax affects your savings.
How much protection do I get with a savings account?
If your savings provider goes bust, you’ll get £85,000 of protection per person, per institution, with the FSCS. You’ll get £170,000 of protection if it’s a joint account.
This means that, if you have your savings split between different savings providers, you could end up with more protection. But check with your providers as some share licences, such as HSBC and First Direct. That means you’d only get £85,000 of protection across the two.
Savings Account FAQs
How do I open a savings account?
You'll be able to do this online, by phone or in branch. Some accounts have to be opened in specific ways.
To open a savings account, you'll need to provide ID and proof of your address so the bank can do its checks.
Do I have to tie my money up to save?
No, you can choose how much access you have to your money by choosing the right savings account.
Can I have more than one savings account?
Yes, however you can only save into one ISA every tax year. Read this guide for more information on choosing the right savings account.
Can I get a joint savings account?
Yes, most savings accounts can be set up in joint names, so you should be able to do this if you’d like to save with someone else.
I’ve spotted a current account with a high rate of interest. Should I get that instead?
Sometimes, you’ll find a current account with a higher interest rate than a savings account.
But you should be aware that current accounts usually only pay interest up to a certain balance.
You’ll also have to have a credit check to open a current account. You can open a savings account without the need for a credit check.
Can I have a savings account if I have bad credit?
Yes, your finances are not checked when you open a savings account. If you need help choosing the right savings account, read this guide.
What is the difference between AER and gross interest?
The Annual Equivalent Rate (AER) shows you how much interest you will earn over the course of a year taking into account compounding and other charges. The gross rate is the flat rate of interest that's actually paid.
About our savings accounts comparison
Who do we include in this comparison?
Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from providers regulated by the Financial Conduct Authority (FCA).
Here is more information about how our website works.
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.
Last updated: 3 August, 2021