Best savings rates – December 2024

If you're looking for the best savings rates, you can earn up to 4.85% with the current top easy-access account or up to 4.8% with a one-year fixed savings account. The difference is, that you have freedom with withdrawals with an easy-access account, whereas fixing your savings requires your cash to be locked in for a specific term.

But you will need to act quickly as the Bank of England has cut interest rates to 4.75%, which means savings rates are dropping faster than ever. We list all the top savings accounts below with details on how to get these rates.

Note:
All the banks we mention in this article are protected by the Financial Services Compensation Scheme, meaning up to £85,000 of your savings are protected should a bank or other financial services company go out of business.

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The best easy access savings rates

Best easy access

Atom Bank Instant Saver Reward – 4.85% AER

There is no minimum opening deposit and you can go up to £100,000, but keep in mind that only £85,000 of your deposit will be protected by the FSCS.

If you make a withdrawal, the rate you earn drops to 3.25%. Interest is paid at maturity and you can open the saver on the Atom app.

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Best notice savings rates

Best accounts for existing customers

Best regular saver

Principality Building Society Regular Saver– 8% AER

This regular saver is returning 8%. It requires you to fix your cash for six months, and you can pay in up to £200 a month. To keep the account open, you must have at least £1 held in the saver.

You're not permitted to withdraw money in the six-month term and you can only save up to £1,200 in the fixed period. Plus, if you want to close your account early, you can without a penalty – and any interest earned will be added to your account balance.

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The best one-year fixed rates

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 note 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 1 year fixed savings accounts.

Best 1 year fixed

Al Rayan Bank (via Raisin UK) 1 Year Fixed Term Deposit – 4.8% AER

Earn an expected profit of 4.8% with Al Rayan Bank when you sign up via Raisin. You need to deposit at least £1,000, and you can save up to £85,000.

Profit is paid annually. You can open this account online.

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The best two-year fixed rates

Currently, the rates for two-year fixed-rate accounts are slightly lower than for one-year fixed accounts, but with savings rates on a likely downhill trajectory, if you're happy to lock away your money until the fixed period ends you're guaranteed this rate for two years.

But, remember, this also means if better rates do appear within that time frame, you will be locked in at a lower rate.

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, sometimes described as fixed-rate bonds, 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 can earn you more interest in the short term, your cash could potentially earn more on the stock market in the longer term.

Looking to switch your current account? Take a look at our guide to the best offers for switching banks, where 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 rates. Sign up for our newsletter to stay up-to-date on all the latest deals for cash savings.