If you're looking for the best savings rates, you can earn up to 5.2% with the current top easy-access account or up to 5.25% 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 fast as the Bank of England has frozen the base rate for the seventh time, which means savings rates could drop again. We list all the top savings accounts below with details on how to get these rates.
The best savings rates: quick menu
1. Best easy-access: Cahoot, 5.2%
2. Best one-year fix: My Community Bank, 5.26%.
3. Best regular saver: Principality Building Society, 8%.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The best easy-access savings rates
| ACCOUNT | AER | MINIMUM DEPOSIT | WHAT YOU NEED TO KNOW |
| Ulster Bank Loyalty Saver Account | 5.2% | £1 | Save up to £5,000. Open online. |
| Monument Bank Easy Access Savings | 5.03% | £25,000 | Save up to £400,000. Open online. |
| Oxbury Bank Easy Access Account Limited Edition 1 | 5.02% | £20,000 | Save up to £500,000. Open online. |
Best notice savings rates
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| OakNorth Bank 95 Day Notice Base Rate Tracker Account | 5.37% | £1 | Open online |
| Vanquis Bank 90 Day Notice Account | 5.35% | £1,000 | Open online |
| Monument Bank 60 Day Notice Account | 5.27% | £25,000 | Open online |
Best accounts for existing customers
| Account | AER | Minimum monthly payment | Notes |
|---|---|---|---|
| First Direct Regular Saver | 7% | £25 | Open online. Maximum deposit is £300 per month. |
| Co-operative Bank Regular Saver | 7% | £1 | Open online. Maximum deposit is £250 per month. |
| Skipton Building Society Regular Saver | 7% | £1 | Open online. Maximum deposit is £250 per month. |
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.
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| Ziraat Bank 1 Year Fixed Saver (via Raisin) | 5.25% | £1,000 | Save up to £85,000. Open online via Raisin. |
| GB Bank UK 1 Year Fixed Term Deposit (via Raisin) | 5.2% | £1,000 | Save up to £85,000. Open online. |
| Stream Bank 1 Year Fixed Account | 5.15% | £1,000 | Save up to £100,000. Open online. |
The best two-year fixed rates
Currently, the rates for two-year fixed-rate accounts are 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.
| ACCOUNT | AER | MINIMUM DEPOSIT | NOTES |
| GB Bank UK 2 Year Fixed Term Deposit (via Raisin) | 5% | £1,000 | Save up to £85,000. Open online |
| RCI Bank UK 2 Year Fixed Term Savings Account | 5% | £1,000 | Save up to £1million. Open online |
| Cynergy Bank 2 Year Fixed Rate Bond | 5% | £1,000 | Save up to £1million. Open online or by phone. |
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 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 rates. Sign up for our newsletter to stay up-to-date on all the latest deals for cash savings.
-
Revolut finally bags a UK banking licence – what next for the challenger?Revolut has finally been granted a UK banking licence following three years of negotiations with the regulator
-
Could Labour impose a “double death tax” of more than 50%?Speculation is mounting that capital gains tax will be reformed in the Budget - and one option is to charge bereaved families the tax on top of inheritance tax. We explain how it could work
