Best savings accounts – January 2023
Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
The Bank of England’s base rate is currently at its highest level since 2008, and looks likely to increase when the Bank meets on 2 February. An increase in rates is good news for savers as the rate increases start to filter through to saving accounts.
Banks have started to increase the interest rates on their savings accounts, and though they don’t beat inflation they are offering some of the best deals on cash savings. We’ve checked the best savings accounts available right now.
If you have cash savings – whether it’s your emergency fund or savings for a short-term goal – you can currently earn as much as 5% from an easy access account for up to £1,500 right now and as much as 7% from a regular savings account. Below are the best savings accounts available for easy access, 12 and 24 months fixes.
All the banks we have mentioned are protected by the Financial Services Compensation Scheme, which protects up to £85,000 of your money should a bank or financial institution go bust.
This article is updated regularly using data from Defaqto.
This article may contain affiliate links – when you purchase through links on our site, we may earn a commission.
The best easy-access savings accounts
Easy access accounts aren’t the top rates, but they come with the freedom of letting you access your cash when you want without losing any interest. So, if you want flexibility, then an easy access account could be for you. These are the best easy-access savings accounts available now.
What you need to know
This account is only available to Barclays Blue Reward members. Open online or in branch.
|4%||£1||Account can be opened and operated online.|
|3%||£1||Only available to existing customers, and managed in-app|
|Shawbrook Bank Easy Access Account||2.92%||£1,000||Open the account online|
This is an app-only account.
The Welcome to Newbury account is open to new customers and can be opened online or in a branch
This account is available via the Raisin platform.
|Atom Bank Instant Saver||2.55%||£0|
Open and manage the account via Atom's app.
You can move to fixed rate deals with higher rates of interest within the app.
Best notice savings accounts
|Furness Building Society 120 Day Notice Account||3.50%||£1,000||Open in branch or by post|
|OakNorth Bank 120 Day Notice Account||3.35%||£1||You can open the account online|
You can open the account online
You can open the account online
Best regular savings for existing customers
|First Direct Regular Saver||7% (fixed for 12 months)||£25||Open the account online. If you're not already a First Direct current account holder you can get a £175 switching bonus. Maximum deposit is £300 per month.|
|Lloyds Bank Club Monthly Saver||5.25%||£10||Open online or in branch. You must be a Lloyds current account holder and a Club Lloyds customer. Maximum deposit is £400 per month|
|Natwest Digital Regular Saver||5.12%||£1||Open online or in branch. You must have a Natwest current account. Maximum deposit is £150 per month.|
5.12% on balances up to £5,000
This account is only available to Barclays Blue Reward members.
If you’re not a member, you can become one by opening a Barclays current account and linking this to your Blue Rewards account. Maximum deposit is £10,000.
You can open the account online and must have a HSBC current account
The best one-year fixed accounts
If you’re happy to lock a chunk of your savings away for a year, it might be worth considering a one-year fixed rate account.
Just be aware that if you take money out before the 12-month period ends, you will lose the interest deal.
Here are the best deals available for 12-month fixed accounts.
Online account. Save up to £85,000
|SmartSave 1 Year Fixed Saver||4.21%||£10,000||Open online and save up to £85,000.|
|Vanquis Bank 1 Year Fixed Saver||4.20%||£1000||Online account. Save up to £250,000|
|Atom Bank 1 Year Fixed Saver||4.15%||£50|
The best two-year fixed-term savings accounts
If you are happy to fix for two years, the interest rates are marginally better. But just as with one-year fixed accounts, you can’t access the cash until the fixed period ends.
This also means if better rates appear within that time frame, you will be locked in at a lower rate.
But, since there is no guarantee that will happen, you might decide it’s better to start earning something on short-term savings immediately.
Manage in-app. Save up to £100,000
Open online. Save up to £1,000
What are the different types of savings accounts?
When putting your cash away, you will usually have the option of different types of saving accounts – ranging from easy access accounts to one, two or three-year fixes.
Easy access accounts allow you to take your money out as and when you please.
Fixed-rate accounts come with restrictions and also mean you cannot access your cash until the account reaches maturity.
You usually earn more interest if you are willing to lock your cash away for a fixed period but keep in mind that this also takes away the flexibility should you need the cash suddenly.
Although two or three-year fixed accounts, sometimes described as fixed-rate bonds, can earn you more interest, it is worth noting that the rates currently on offer do not beat inflation, meaning the value of your cash is still eroding. So if you can lock your money away for the long term (five years or more) then your cash could potentially earn more on the stock market.
Looking to switch current accounts? Take a look at our guide in the best current account switching offer, where right now you can earn as much as £200 for moving bank accounts.
This article is updated regularly to bring you the latest on the best savings accounts rates. Sign up to our newsletter to stay up-to-date-on the latest deals for cash savings.