With savings rates still elevated in 2026, your money should be working harder than the typical 0.5% high-street bank offers. The best savings accounts pay 4–8% depending on account type and restrictions.
Quick answer: Regular saver accounts pay the highest rates (6–8%, limited monthly deposits). Easy access accounts pay 4.5–5%. Fixed-rate bonds pay 4.5–5% (locked for 1–5 years). For tax-free interest, use a Cash ISA. Don’t leave money earning 0.1% at your high-street bank.
Best Easy Access Savings Accounts
| Provider | Interest Rate (AER) | Minimum Deposit | Withdrawals | FSCS Protected |
|---|---|---|---|---|
| Chase Saver | 4.75% | £0 | Instant | Yes |
| Chip | 4.83% | £1 | Instant | Yes |
| Oxbury | 4.81% | £1 | Instant | Yes |
| Marcus (Goldman Sachs) | 4.50% | £1 | Instant | Yes |
| Monzo Instant Access | 4.50% | £500 (pot) | Instant | Yes |
| Atom Bank | 4.50% | £1 | Instant | Yes |
| High-street bank (typical) | 0.10–0.50% | Varies | Instant | Yes |
Best Fixed-Rate Savings Bonds
| Provider | 1-Year Rate | 2-Year Rate | 3-Year Rate | 5-Year Rate | Minimum |
|---|---|---|---|---|---|
| Atom Bank | 4.85% | 4.50% | 4.30% | 4.10% | £50 |
| Charter Savings | 4.80% | 4.45% | 4.25% | 4.05% | £5,000 |
| Cynergy | 4.75% | 4.40% | 4.20% | 4.00% | £1,000 |
| Aldermore | 4.70% | 4.35% | 4.15% | 3.95% | £1,000 |
| Shawbrook | 4.65% | 4.30% | 4.10% | 3.90% | £1,000 |
Fixed rates lock in the rate for the full term. You cannot withdraw early (or pay a penalty).
Best Regular Saver Accounts
| Provider | Rate (AER) | Max Monthly Deposit | Term | Requires Current Account |
|---|---|---|---|---|
| First Direct | 7.00% | £300 | 12 months | Yes |
| Nationwide | 6.50% | £200 | 12 months | Yes |
| HSBC | 7.00% | £250 | 12 months | Yes |
| NatWest | 6.17% | £150 | 12 months | Yes |
| Lloyds | 6.25% | £500 | 12 months | Yes |
Regular savers pay the highest rates but cap monthly deposits at £150–£500.
How Much Interest You’ll Earn
| Savings Amount | At 0.10% (High-Street) | At 4.50% (Easy Access) | At 5.00% (Fixed) |
|---|---|---|---|
| £5,000 | £5 | £225 | £250 |
| £10,000 | £10 | £450 | £500 |
| £20,000 | £20 | £900 | £1,000 |
| £50,000 | £50 | £2,250 | £2,500 |
Leaving £20K at a high-street bank vs a competitive savings account costs you ~£880/year.
Personal Savings Allowance
| Tax Band | Annual Tax-Free Interest | Savings Needed to Exceed (at 5%) |
|---|---|---|
| Basic rate (20%) | £1,000 | £20,000 |
| Higher rate (40%) | £500 | £10,000 |
| Additional rate (45%) | £0 | £0 |
| Cash ISA | Unlimited | N/A (always tax-free) |
If your savings exceed these thresholds, consider a Cash ISA for the excess.
Cash ISA vs Regular Savings Account
| Feature | Cash ISA | Regular Savings Account |
|---|---|---|
| Tax on interest | Tax-free (always) | Taxed above PSA |
| Annual ISA allowance | £20,000 | No limit |
| Rates | Slightly lower (usually) | Slightly higher |
| Best for | Higher earners, large balances | Basic/higher rate taxpayers under PSA |
FSCS Protection
| Coverage | Limit |
|---|---|
| Per person, per banking group | £85,000 |
| Joint accounts | £170,000 |
| Temporary high balances (house sale, etc.) | £1,000,000 (for 6 months) |
| Payout timeframe | Within 7 working days |
Important: Some banks share a banking licence (same group). Check your deposits don’t exceed £85K within any single banking group.
Bottom Line
Moving your savings from a high-street account (0.1%) to a competitive savings account (4.5–5%) takes 10 minutes and earns hundreds or thousands more per year. Use easy access for your emergency fund, fixed-rate bonds for money you won’t need, and regular savers for the highest rates on small amounts. If you’re a higher-rate taxpayer, use a Cash ISA to keep interest tax-free.
For related guides, see best current accounts UK and Stocks & Shares ISA guide.