What is the best savings rate in the UK right now?

The best rates depend on the account type. Easy access accounts pay around 4.5-5% AER. Fixed rate bonds (1 year) pay 4.5-5.5%. Regular savers pay up to 7% but with monthly deposit limits. Notice accounts (paying for committing to give notice before withdrawal) sit between easy access and fixed rates.

Should I fix my savings rate?

Fixing gives you certainty but locks your money away. Fix if you don't need access and want to lock in today's rate before potential cuts. Keep some in easy access for emergencies. A common strategy is to split: emergency fund in easy access, other savings in fixed or notice accounts.

Is my money safe in a savings account?

Yes, up to £85,000 per person per banking group is protected by the FSCS (Financial Services Compensation Scheme). If the bank fails, you get your money back within 7 days. For more than £85,000, spread across different banking groups for full protection.

Best Savings Rates UK 2026 — Where to Put Your Money | PocketWise

Getting a good return on your savings matters — especially with inflation eroding the value of cash. The difference between a 2% and a 5% savings rate on £10,000 is £300 per year. Here is where to find the best rates.

Best Rates by Account Type

Easy Access Accounts (No Withdrawal Restrictions)

Provider	Account	Rate (AER)	Notes
Chase	Saver Account	4.50%	Via app only; linked to current account
Chip	Instant Access	4.84%	App-based
Oxbury	Easy Access	4.71%	Online only
Cynergy	Easy Access	4.65%	Online/phone
Paragon	Easy Access	4.55%	Online

Notice Accounts (Give Notice Before Withdrawing)

Provider	Notice Period	Rate (AER)
Oxbury	90 days	4.90%
Shawbrook	95 days	4.85%
Hampshire Trust	120 days	4.95%
Aldermore	90 days	4.80%

Fixed Rate Bonds (Money Locked for Set Period)

Provider	Term	Rate (AER)	Minimum
SmartSave	1 year	5.10%	£1,000
Atom Bank	1 year	5.05%	£50
Cynergy	2 years	4.75%	£1,000
Aldermore	1 year	4.95%	£1,000
Shawbrook	3 years	4.65%	£1,000

Regular Saver Accounts (Monthly Deposits)

Provider	Account	Rate (AER)	Monthly Max	Notes
First Direct	Regular Saver	7.00%	£300	Must have 1st Account
HSBC	Regular Saver	7.00%	£250	Must have HSBC account
Nationwide	Flex Regular Saver	6.50%	£200	Must have FlexAccount
Club Lloyds	Monthly Saver	6.25%	£400	Must have Club Lloyds
Santander	Regular eSaver	6.00%	£200	Must have 123 account

Rates change frequently — verify current rates before opening.

Choosing the Right Account

Your Situation	Best Account Type
Emergency fund	Easy access
Saving for house deposit (1–2 years)	Fixed rate bond
Building savings gradually	Regular saver
Might need access but can give notice	Notice account
Saving for specific date (e.g. holiday)	Fixed rate matching the date
Already have an emergency fund	Fixed or notice for better rates

Interest Payment Options

Option	How It Works	Best For
Annual	Interest paid once a year	Maximising compound growth
Monthly	Interest paid every month	Those needing income
On maturity	Interest paid when bond ends	Fixed term savings

For compound growth, annual payment is usually better. The stated AER assumes interest is compounded.

Tax on Savings Interest

Tax Band	Personal Savings Allowance
Basic rate (20%)	£1,000/year tax-free
Higher rate (40%)	£500/year tax-free
Additional rate (45%)	£0 (all interest taxable)

Savings Amount	At 5%	Tax-Free? (Basic Rate)
£10,000	£500	Yes
£20,000	£1,000	Just covered
£30,000	£1,500	£500 taxable

To avoid tax on larger savings, use ISAs. See our ISA guide and cash ISA rates.

FSCS Protection

Coverage	Detail
Amount protected	£85,000 per person, per banking group
Joint accounts	£170,000 protected
Temporary high balances	Up to £1 million for 6 months (e.g. house sale proceeds)
ISAs	Covered separately to the same bank’s savings

Group	Brands
Lloyds Banking Group	Lloyds, Halifax, Bank of Scotland
NatWest Group	NatWest, RBS, Ulster Bank
Santander	Santander only
HSBC Group	HSBC, First Direct, M&S Bank
Nationwide	Nationwide only

If you have more than £85,000, spread across different groups.

Savings Strategies

The Savings Ladder

Tier	Amount	Account Type	Purpose
1	1 month’s expenses	Easy access	Immediate emergencies
2	3–6 months’ expenses	Easy access or notice	Emergency fund
3	Additional savings	Fixed rate / investments	Growth

Making Savings Automatic

Strategy	How
Pay yourself first	Standing order on payday
Round-ups	Apps that round up spending to save
Regular saver	Consistent monthly deposits
Savings pots	Separate pots for different goals

Rate Monitoring

Strategy	Detail
Set calendar reminders	Check rates quarterly
Use comparison sites	MoneySupermarket, Moneyfacts
Watch Bank of England announcements	Rate changes often follow
Be willing to switch	Provider loyalty rarely pays

For more on growing your savings, see our savings account types guide and emergency fund guide.