The best UK savings rates this week

Last updated: 16 January 2025 at 11:40

Increases to leading five-year fixed returns sees the sector surpass the top one-year bond.

With UK inflation falling unexpectedly to 2.5% in December, leading one-year fixed bonds observed a month-on-month decrease since the previous announcement, dropping from 4.80% AER to 4.77% AER, according to data from Moneyfactscompare.co.uk.

Conversely, it found the top five-year fixed rate rose considerably in the same period, and now stands at 4.78% AER, slightly ahead of its shorter-term counterpart.

While this shows a notable closing of the gap between short and long-term accounts, Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, clarified that “a long-lasting return to a more ‘traditional’ savings market remains in the distant future”.

Nevertheless, savers would be wise to secure any fixed deals while they’re still available and can also consider two- and three-year fixed accounts which also experienced increases this week.

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

If you’re looking for an easy access account this week, the top rate can still be found with Chase and its Chase Saver With Boosted Rate. Inclusive of a 1.50% AER six-month bonus, it pays 5.00% AER monthly and can be opened and managed via app without a minimum deposit. Bear in mind that you’ll need to be a new customer to be eligible. While you can add to your balance without restriction, it’s also worth noting that a £25,000 daily external transfer limit applies when withdrawing funds.

Offering returns daily, GB Bank’s NuWealth - Easy Access Account pays a highly competitive 4.86% AER when considering a 0.46% AER bonus for the first 12 months. This app-based account can be opened with a £500 initial investment through the NuWealth savings platform and permits unlimited penalty-free withdrawals. While further additions can be made via a nominated account, keep in mind a lower 4.40% AER is paid on any portion of your balance over £25,000.

Having increased its rate last week, the Chip Easy Access Saver (powered by ClearBank) from Chip maintains its respectable position on our chart. This fellow app-based account offers 4.85% AER monthly when including its 1.03% AER 12-month bonus, and, while you won’t need a minimum balance to open the account, an open banking connection to a current account is required. You’ll be able to add to your pot at any time, though only three penalty-free withdrawals can be made each year before incurring a lower rate of 3.75% AER.

Paying the same rate monthly, Atom Bank’s Instant Saver Reward also doesn’t need a minimum investment to operate via app and allows both additional contributions and withdrawals via a nominated account. However, its headline rate is only paid until a withdrawal is made in the month, at which point a lower 3.25% AER applies.

Best Fixed Rate Bonds

The top one-year fixed rate holds at 4.77% AER again this week and continues to be offered by Vida Savings. Its 1 Year Fixed Rate Bond pays returns either monthly or on anniversary from a £100 deposit and can be opened online; it can additionally be managed via app. Savers wanting to add to their pot can do so for a further 21 days, though won’t be able to access funds until the end of the term.

Those after a two-year fixed bond will be pleased to see the top rate climbing to 4.70% AER this week following an increase from Atom Bank. You can open its 2 Year Fixed Saver from a modest £50 initial investment which can be added to for a further week, however, early access is prohibited. Keep in mind this account operates exclusively via app, so if you value conventional means of banking you may need to consider alternative options.

SmartSave hiked the rates on its three- and five-year fixed accounts this week, and now holds the lead across both sectors. Its 3 Year and 5 Year Fixed Rate Savers pay 4.62% AER and 4.78% AER on maturity respectively and operate entirely online. You can add to their considerable £10,000 minimum deposits for up to 14 days after opening but won’t be able to access your cash early.

Notice Accounts Saving Rates

Our up to 30 days’ chart sees no change this week, as United Trust Bank extends its tenure. Paying 4.75% AER yearly, its UTB 30 Day Notice can be opened online, and additionally managed by post or by phone if preferred. While the account can be opened from £5,000, you’ll only receive the headline rate with balances exceeding £10,000, with lower amounts instead being paid 4.65% AER. You can add to and withdraw from the account using a nominated account, with the latter requiring the full 30 days’ notice period to be served.

While the top rate for a 60-day notice account again sits at 4.80% AER, it’s now offered by Kent Reliance’s 60 Day Notice Savings Account - Issue 59. You can choose to have returns paid monthly or yearly and can open and manage the account online or in branch from £1,000. Note, further additions can be made via cash in branch, cheque or through a bank transfer. Meanwhile, withdrawals are subject to serving the full 60 days’ notice period and can only be accessed using the method in which the account was originally opened.

Despite rising pressure in the sector, Bank of London and The Middle East’s 90 Day Notice Account (Issue 7) continues to be a mainstay at the top of the 90-day bracket. Paying an expected profit rate of 4.94% AER quarterly, those with a £10,000 deposit can operate the account online, and can add to their balance via a nominated account. When withdrawing funds, bear in mind you’ll need to wait the full 90 days and must take a minimum of £1,000.