The best UK savings rates this week

Last updated: 5 September 2024 at 14:00

Big banks continue to offer low returns on easy access accounts, while paying higher returns on fixed bonds.

Despite offering fixed accounts that perform well on the market, larger providers have been found to offer subpar rates in the easy access sector.

This is according to the Moneyfacts Consumer Duty Audit Tool for Savings, which found that the big banks pay an average rate of 1.64% between them on their most flexible accounts.

With the market average coming in at a significantly higher 3.08% based on a £10,000 deposit, savers should consider looking beyond more well-known brands to receive better returns.

Read more: Flexible savings rates from big banks continue to fall short

Below are the providers that currently offer the best easy access, fixed and notice savings rates. These products are available to new customers with a £10,000 deposit. Note that higher rates may be available to existing customers or those who are willing to save more than £10,000.

You can also visit our charts to compare top rates across the whole of the savings market.

Easy access accounts

Holding steady at the top of our easy access chart, Ulster Bank’s Loyalty Saver continues to pay a market-leading 5.20% AER yearly. This account can be opened and managed online, by phone or via app, and is available to new and existing current account customers. While there’s no minimum deposit, its headline rate is only paid on balances of £5,000 or more, with any amount below this threshold instead receiving a lower rate of 2.25% AER. You’ll also be able to make further additions and withdrawals without restriction.

A new account now offers the next best rate on our chart this week. The Bank of London pays a highly competitive 4.91% AER daily on its Flagstone - Easy Access Account. It requires a substantial £10,000 initial investment and operates online through the Flagstone platform. Both further contributions and withdrawals are permitted.

Meanwhile, cahoot still pays 4.85% AER on its cahoot Simple Saver (Issue 4), which requires a £1 initial investment and can be opened online. It can then additionally be managed by phone if you prefer. Keep in mind that while you can add to and withdraw from your pot without penalty, this account will revert into a cahoot Savings Account after 12 months.

Having withdrawn its HL Active Savings - Easy Access Account, GB Bank still pays 4.85% AER monthly on its Raisin UK - Easy Access Account Limited Edition. Using the Raisin UK marketplace, you’ll be able to open and manage this account online or via app from a £5,000 deposit. This balance can then be freely added to, and you’ll also be permitted unlimited penalty-free withdrawals.

Best Fixed Rate Bonds

Union Bank of India (UK) Ltd has cut its leading rate, and now shares its top position on our one-year fixed bond chart. The provider also tops our two-year chart after Close Brothers Savings lowered its rate. Its one year Union Premier Bond pays 5.05% AER on maturity and can be operated online from a £5,000 investment.

Meanwhile, its one- and two-year Fixed Rate Deposits pay 5.05% AER and 4.75% AER respectively, on a lower £1,000 opening amount. These accounts can be opened and managed in branch or by post, with the one-year account offering interest on maturity and the two-year account paying on anniversary. As is typical with fixed bonds, neither further contributions nor early access are permitted for any of the three accounts.

Now also leading the one-year sector, Mizrahi Tefahot Bank Ltd pays 5.05% AER on maturity of its Raisin UK - 1 Year Fixed Term Deposit. This account can be opened and managed online or by app using Raisin UK and requires a £1,000 minimum investment. Note you won’t be able to add to this amount or withdraw from your savings until the end of the term.

On our three-year fixed bond chart, withdrawals from GB Bank leaves new providers in top positions.
Hampshire Trust Bank has increased the rate on its 3 Year Online Fixed Saver (Issue 68) and now pays a leading 4.51% AER on anniversary. A £1 deposit will allow you to open this account online, which can additionally be managed by phone. You’ll be able to add to your pot for 14 days from opening but will not be permitted early access.

UBL UK also pays 4.51% on its Raisin UK - 3 Year Fixed Term Deposit and 3 Year Fixed Term Deposit. The former offers interest on maturity, can be applied for using Raisin UK and operates online or by app. The latter, meanwhile, can pay interest monthly, on anniversary or on maturity, and can be opened online, in branch, by post or via app; it can additionally be managed by phone. Both accounts require £2,000 investments that cannot be added to or accessed early.

Still leading our five-year fixed bond chart, State Bank of India’s Green Fixed Deposit continues to offer returns of 4.35% AER either on anniversary or on maturity. You can open this account in branch with a £10,000 initial investment provided you have or open a State Bank of India savings or current account. You can then additionally manage it online or by post. Note both further contributions and early access are prohibited.

Notice Accounts Saving Rates

Rates in the notice sector are again stable this week. If you’re looking for a notice period of up to 30 days, GB Bank still offers top returns on its Raisin UK - 7 Day Notice Account. It pays 4.85% AER on account closure and can be opened and managed online or by app from £1,000. You won’t be able to add to this balance, and withdrawals are subject to seven days’ notice and closure of the account. Note no partial withdrawals are permitted.

In the 60-day sector, QIB (UK)’s Raisin UK - 31 Day Notice Account continues to offer an expected profit rate of 5.05% AER. It can be opened and managed online or by app through the Raisin UK platform with a £1,000 deposit which cannot be added to. You’ll have to give the full 31 days’ notice to access your funds, which is also subject to a full balance withdrawal and account closure. At this point, any accrued interest will be paid.

For those hoping to use interest to supplement their income, Vanquis Bank’s 60 Day Notice Account (Issue 2) pays the same rate, either monthly or on anniversary. This account requires £1,000 to operate online and will permit further additions.

If you’re willing to give more notice, you can access some of the top paying rates on the savings market. Paying a leading 5.25% AER, Investec Bank plc leads our up to 90 days’ chart with its online 90-Day Notice Saver. Its £5,000 initial opening amount can be added to freely, though withdrawals are subject to serving the full notice.