Compare the Best UK Savings Accounts

Savings accounts explained

Types of savings accounts

There are several types of savings accounts that you can choose from, depending on your financial situation and savings goals.

Regular savings accounts

Regular savings accounts may be worth considering if you don’t have a lump sum but instead want to deposit a sum of money into a savings account every month. These accounts typically require you to deposit a minimum amount each month and may set restrictions on withdrawals. Because of the conditions related to these accounts, regular savings accounts can often pay relatively high rates.

Easy access savings accounts

Easy access savings accounts, sometimes known as instant access accounts, are the most flexible type of savings account. Many allow you to make as many deposits and withdrawals as you choose, without any restrictions, which can be useful if you want to be able to dip in and out of your savings.

However, bear in mind that some accounts, particularly those paying higher interest rates, may limit the number of withdrawals you can make. Also, these accounts pay a variable rate of interest, which means the rate could change at short notice.

Fixed rate bonds

Fixed rate bonds typically pay higher rates than easy access accounts as you agree to lock your money away for a specified period. The rate is guaranteed for the duration of the fixed term.

You will usually only be able to deposit into the account for a limited period after opening and won’t normally be able to access your savings until the end of the term. Fixed rate bonds offer terms ranging from several months to several years.

Notice accounts

Notice accounts are like a halfway house between easy access and fixed rate savings. You will often be able to add to these accounts without restriction but, when you want to withdraw any money, you will need to wait until the end of the specified notice period. Notice periods can typically range from 30 days up to six months.

Children’s savings accounts

Children and teenagers aged under 18 will find there are specific children’s savings accounts available. They may come with certain age limits and allow parents or guardians to manage the account until the child reaches a certain age. There are easy access and fixed accounts available.

Do I need a savings account?

Although you don’t need a savings account by law, most people will find them a useful way to manage their finances, build up their savings and earn interest on their money.

Savings accounts allow you to separate money that you’re putting aside for the future from your day-to-day spending money that you need for bills and shopping, for example.

If you use your current account for your savings, you may be tempted to spend this money instead of keeping it saved for emergencies, a house deposit, a holiday or any other goals. Furthermore, you would miss out on the higher rates of interest that savings accounts can offer.

You may think it’s not worth opening a savings account if you don’t have a large sum to deposit, but getting into a habit of regularly adding to a savings pot can help to improve your financial stability. By building up your savings, you give yourself a financial cushion if your income drops or if you’re faced with an emergency expense, such as a car repair, which means you may be less likely to turn to expensive forms of borrowing to cover these costs.

Are there any fees associated with savings accounts?

Savings accounts don’t typically charge any fees as standard.

However, some fixed rate savings accounts and notice accounts may apply certain charges such as:

• A penalty or a loss of interest if you want to withdraw your money before the end of the fixed term or notice period.
• A penalty if you want to close your fixed rate bond before the end of the term.
• A monthly fee. While most savings accounts don’t charge any maintenance fees, some savings accounts are only available if you have a current account with a provider, and this may charge a monthly fee.

Can I access my money anytime?

If you have an easy access savings account, you will often be able to withdraw your money whenever you like. However, it’s worth bearing in mind that some of these accounts may only allow a limited number of withdrawals per year, otherwise the provider will close the account or pay a lower rate of interest, for example.

For notice accounts, you have to wait until the end of the specified notice period before accessing your money, unless the provider allows earlier access for a penalty charge.

If you have a fixed rate bond, you normally won’t be able to access your money until the end of the term, which is why it’s so important to think about how much you deposit in one of these accounts.

Do I need to pay tax on my savings?

Only the interest earned on your savings is liable for tax and, even then, you’ll only need to pay tax if you receive above a certain amount of interest within a single tax-year (known as your Personal Savings Allowance).

This threshold stands at:

A basic-rate taxpayer with £10,000 in an account offering 4.00% (gross), for instance, might earn £400 in interest over a year and wouldn’t need to pay tax as this falls within their Personal Savings Allowance. In contrast, a basic-rate taxpayer with a more substantial, £30,000 deposit might receive £1,200 in interest and would be taxed on the £200 over their allowance.

However, as Income Tax brackets are expected to remain frozen until the 2028/29 tax-year, this combined with wage growth will likely cause more people to become higher-rate taxpayers and have their allowance slashed to £500. As a result, many with smaller deposits could find themselves at risk of paying tax on their savings – some for the first time.

Use our lump sum savings calculator to work out how much interest you could earn on your savings and get an idea whether you’ll be taxed. Alternatively, read our dedicated guide for more information about the Personal Savings Allowance and how HMRC calculates your tax bill.

How to choose the best savings account

When comparing savings accounts and deciding which one is right for you, there are several points to consider:

• What is the interest rate? This will be one of the most important factors for most savers. The higher the interest rate, the greater return you can get on your savings. Compare the best high interest accounts using our charts above.

• How much do you want to save? Providers may pay different interest rates on different account balances, and accounts will also require a minimum opening deposit that could range from £1 to thousands of pounds.

• Do you need access to your money? There are different types of savings accounts available depending on whether you want to be able to dip into your savings or not. For example, easy access accounts may be suitable for an emergency fund, while a fixed bond may be more suitable for your longer-term savings goals.

• Do you want to deposit a lump sum or make regular deposits? While some accounts may allow you to deposit as much and as often as you like, other accounts set certain restrictions and conditions. It’s also worth checking the minimum opening deposit that is required to open an account.

• How do you want to manage your account? Providers offer different methods of managing their accounts, with some only available via mobile app while others give you the option of visiting a branch, for example.

• How do you want the interest paid? Some accounts pay interest monthly, which could be appealing for those wanting to supplement their income, while other accounts may pay yearly, for example.

• Do you want an ethical savings account? Some savings accounts and providers highlight their green or ethical credentials, which may be important for some savers. Similarly, there are Shari’ah compliant savings accounts on the market which pay an expected profit rate, instead of an interest rate like traditional savings accounts.

• Are you eligible for the account? Some savings accounts are only available to existing customers (such as those who hold a current account with the provider), while others may only be available to those living in certain postcodes or who meet certain criteria, for example.

• Are you at risk of paying tax on your savings interest? If you think you may earn more interest than your Personal Savings Allowance, you may want to consider a tax-free cash ISA instead.

What is a good interest rate for a savings account?

In most cases, a good interest rate will be higher than the current rate of inflation, as this is crucial for seeing your money grow in real terms.

If your savings earn less than the rate at which the costs of goods and services are rising, your money loses purchasing power (i.e. the same amount buys less).

Our dedicated guide explains more about inflation and how it affects your finances.

What’s the best savings account for beginners?

If you’re new to saving, an easy access savings account is likely to be the simplest and most user-friendly option. These accounts typically allow you to add to your savings when you choose and make withdrawals if you need to access the money.

However, look out for any accounts that restrict the number of withdrawals you can make or that come with a bonus rate for a limited period.

If you’re at the beginning of your savings journey, it may be worth looking for accounts without any complicated terms and that don’t require a large opening deposit.

Instead of an easy access account, new savers may also be interested in a regular savings account. While these typically come with more terms and conditions, they can help to encourage a regular savings habit as they usually require you to deposit a minimum amount in the account each month.

How do I open a savings account?

It should be fairly straightforward to open a savings account. Depending on the account you choose, you may be able to open it online, by mobile app, in a branch or over the phone, for example.

You will usually need to provide some personal details, including your full name, date of birth and address history, when opening a savings account. You may also need to show some proof of ID, such as a driving licence, so the provider can verify your identity.

These identity checks don’t involve any credit checks and won’t affect your credit score.

You may also need to provide other information during the application process, such as details of another bank or building society account that will be “linked” to the savings account for deposit and withdrawals, for example.

Once you’ve provided all the necessary details, you will usually need to deposit a minimum sum to open the account. This could be as little as £1 or as much as £10,000 or more.

Bear in mind that many providers require you to be a UK resident and to confirm that the UK is your only country of residence for tax purposes.

What should I do if my savings account is offering a low interest rate?

Savings rates have been higher over the last couple of years than they have been previously, which means anyone who hasn’t reviewed their savings and switched accounts may be earning a below-average rate of interest.

For example, if you’ve put your money in a savings account with your current account provider for convenience, you could be missing out on significant amounts of interest.

The good news is that it’s easy to open a new savings account and switch to a higher rate.

Evaluate your savings goals

When choosing a new savings account, it’s important to think about what you want to do with your savings. For example, if you have a lump sum that you won’t need to access for several months or more, you may want to look at locking in a rate with a fixed bond. Alternatively, if you want to have access to your savings so you can dip into them in case of an emergency, for example, an easy access account is likely to be most suitable.

Compare accounts

Once you know the type of savings account that best fits your requirements, you can compare savings rates and other account features on our charts. They’re regularly updated to show the most competitive savings rates today, as well as other features such as management methods and opening requirements.

Switch accounts

If you’ve found a savings account with a higher rate of interest, you can then move money from your existing account into the new account. Bear in mind that, if your savings are locked into a fixed rate bond, you may need to wait until the end of the term before switching.

Regularly review your savings

After you’ve moved your savings to a higher-paying account, that’s not the end of the job. You should regularly review the rate paid on your savings account (particularly if it’s a variable account as providers may change the rate) and compare it with the top savings rates on the market to ensure you’re still getting a competitive return.

Tracking the best savings rates and market trends

While it’s good practice to review your savings on a regular basis, tracking changes in the wider market can also be worthwhile.

For example, you may want to look out for when the Bank of England’s Monetary Policy Committee (MPC) reviews the UK’s central interest rate a minimum of eight times a year. More commonly known as the base rate, this is how much it charges other banks and building societies to borrow money. While any changes to the base rate are mainly used to control inflation or boost the economy, it can also have an impact on your savings.

Related guide: What is the Bank of England base rate and what does it mean for your money?

In recent years, the UK base rate was increased 14 consecutive times between December 2021 and August 2023 which caused returns on savings to skyrocket.

Average rates have since cooled somewhat following four base rate reductions between August 2024 and May 2025 but, nevertheless, remain higher than seen in the recent past.

Whether savings rates continue to trend downwards will largely depend on whether the Bank of England can keep inflation in check, which would pave the way for future base rate cuts. That being said, providers consider more than just the base rate when setting their pricing and some may even buck trends to entice deposits. It’s wise to regularly compare top savings rates and consider switching if more competitive returns are available.