Savings Account Interest Rates – Compare Best UK Accounts Now
Savings account interest rates in the UK have shifted following successive Bank of England base rate cuts. Easy access accounts now typically offer between 4% and 5% AER, fixed-rate bonds reach 4.7% for one-year terms, and regular saver accounts can pay as much as 7.1% – though with strict monthly deposit limits. This guide compares the best rates available, explains what Martin Lewis recommends, and breaks down the factors every saver should consider.
The information below is drawn from comparison sites such as MoneySavingExpert, MoneySuperMarket, and Moneyfacts, with rates current as of early May 2026. All accounts listed are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution.
What are the best savings account interest rates in the UK right now?
The top rate in each category changes frequently as banks adjust to the base rate environment. The table below gives a snapshot of the best deals available now, followed by a deeper look at each account type.
4.68% AER (UBL UK variable) – MSE top pick without bonus erosion
4.70% AER – Moneyfacts top; also offered by RCI Bank UK
7% fixed AER (First Direct) – limited to £300/month
UBL UK at 4.68% variable – no bonus to expire
Key insights about current savings rates
- Savings rates have come down from over 5.5% in mid‑2024 but still outpace inflation.
- Easy access accounts cluster around 4.1%–4.7% AER; the highest include temporary bonuses.
- Fixed‑rate bonds slightly outperform easy access, topping out at 4.70% for one year.
- Regular savers remain the best option for those who can commit monthly deposits of £200–£300.
- High street banks like NatWest and Nationwide pay less than online challengers.
- Martin Lewis advises locking in a fixed rate now if you have a lump sum, as further cuts are expected.
- Interest above the Personal Savings Allowance is taxable; ISAs offer a tax‑free alternative.
Top easy access savings accounts (instant access)
| Provider / Account | Rate (AER) | Key Terms |
|---|---|---|
| UBL UK | 4.68% variable | Min £2,000; monthly or annual interest |
| Cynergy Bank | 4.27% (2.27% + 2% bonus for 1yr) | Min £1, max £1m; annual interest; online |
| Tesco Bank | 4.12% (1.05% + 3.07% bonus for 1yr) | Min £1, max £1m; annual interest; online |
| Hanley Economic Building Society | 4.27% | Max 2 withdrawals/year; min £100, max £300k |
| Saga | 4.11% (2.86% + 1.25% bonus for 1yr) | Min £1, max £1m; monthly interest; no joint accounts |
| Post Office Easy Access | 3.00% (incl. 2.10% bonus for 12 months) | Drops to 0.90% after bonus period |
| NatWest Digital Saver | 1.25% on first £10,000 | Daily interest, paid monthly |
| Moneyfacts Top (undisclosed provider) | 5.00% | Check site for current name |
Best fixed rate savings accounts (1‑5 year terms)
| Term | Top AER (Moneyfacts) | Example Provider |
|---|---|---|
| Up to 1 year | 4.36% | Various |
| 1 year | 4.70% | RCI Bank UK (4.65% via MoneySuperMarket) |
| 2 years | 4.69% | RCI Bank UK |
| 3 years | 4.66% | Various |
| 4 years | 4.57% | Various |
| 5 years | 4.70% | Various |
Regular savings accounts with high interest offers
Regular savers pay the highest headline rates, but they cap how much you can put in each month. The table below shows the best open‑to‑all options.
| Provider | Rate | Max Monthly Deposit | Can You Miss a Month? | Withdrawals? |
|---|---|---|---|---|
| First Direct | 7% fixed (1yr) | £300 | No (min £25) | No (drops to 1.75%) |
| Co‑op Bank | 7% variable (1yr) | £250 | Yes | Yes |
| Skipton BS (existing members) | 5.75% variable (BoE + 2%) | £250 | Yes | No (early closure OK) |
| HSBC | 5% fixed (1yr) | £250 | No (min £25) | No (drops to 1.75%) |
The maximum you can deposit across all regular saver accounts is typically £200‑£300 per month per account. If you skip a deposit or make an early withdrawal, the rate may drop to around 1.75%. These accounts are best for building a savings habit, not for large lump sums.
What does Martin Lewis recommend for savings accounts?
Martin Lewis, via MoneySavingExpert, regularly updates his top picks. As of May 2026, his easy access favourite is UBL UK at 4.68% because it does not rely on a temporary bonus. For fixed rates, he suggests RCI Bank UK or MBNA at around 4.7%, and for regular savers, First Direct and Co‑op Bank at 7% are his top choices.
Martin Lewis’ current top picks on MoneySavingExpert
- Easy access: UBL UK (4.68% variable) – no bonus to expire; min £2,000.
- Fixed rate (1yr): 4.70% – MSE favours big‑name providers like MBNA (Lloyds) for reliability.
- Regular saver: First Direct 7% fixed and Co‑op Bank 7% variable – both open to all.
- Switch deal: NatWest/RBS offers effective 7% on £5,000 combined with a £150 cash incentive.
Understanding the difference between easy access and fixed rate
Lewis recommends easy access for emergency funds and short‑term goals. Fixed rates are better for lump sums you don’t need for a year or more, especially if you expect further base rate cuts. He warns that after a fixed term ends, the money usually drops to a low variable rate, so you must switch.
Chase 4.5% new customer offer and other standout deals
Chase offers 4.5% to new customers for 12 months – a 2.25% bonus on top of its 2.25% base rate. After the bonus expires, the rate falls to 2.25%. This is a good short‑term option if you do not meet UBL UK’s £2,000 minimum.
Set a reminder to switch your money before the bonus period expires. Many banks offer attractive rates only for new customers, so moving accounts regularly can keep your returns high. Always check the FSCS protection limit before spreading savings across institutions.
How do savings account interest rates compare across major UK banks?
High street banks typically pay lower rates than online‑only challengers. Below is how three major names – NatWest, Nationwide, and First Direct – currently stack up.
NatWest savings rates and account features
- Digital Saver: 1.25% variable on first £10,000 (daily interest, monthly pay).
- Fixed Term (1yr): 3.66% – 4.31% AER depending on deposit amount.
- Regular Saver (existing customers + switch): 5.25% on £5,000 plus a fixed 1.75% extra and £150 switch cash – effective rate near 7%.
Nationwide savings rates and account features
Nationwide did not feature in the top‑rate tables from MSE or Moneyfacts in the latest data. Its easy access accounts generally pay between 2% and 3%, which is below the market average. It does offer competitive fixed‑rate ISAs from time to time, but no specific rate was available at the time of writing.
First Direct savings rates and account features
- Regular Saver: 7% fixed for 1 year, £25–£300/month, no withdrawals, drops to 1.75% if you break terms.
- Easy Access: Not a standout – typically below 3%.
- Fixed Rate: Not currently competing in the top tier.
Overall, savers who stick with a single high‑street bank will earn significantly less than those who switch or use challenger banks. It is worth comparing rates across providers at least once a year. For more ways to boost your finances, see Bank Account Switch Offers – Up to £500 Free Cash UK 2025.
How to choose the right type of savings account?
The best account for you depends on how much you have to save, when you might need the money, and whether you can commit to monthly deposits. Below is a breakdown of the main types.
Easy access vs fixed rate: pros and cons
| Factor | Easy Access | Fixed Rate |
|---|---|---|
| Withdrawal flexibility | Any time, no penalty | Not allowed or subject to penalty |
| Rate stability | Variable – can change at any time | Locked for the full term |
| Typical top rate (May 2026) | 4.68% | 4.70% (1yr) |
| Best for | Emergency fund, short‑term savings | Lump sum you won’t need for 1‑5 years |
Regular savings accounts – how they work and typical rates
A regular saver pays a high rate (often 5‑7%) but limits monthly deposits and usually ties you in for a year. If you skip a payment or withdraw early, the rate drops dramatically. They are ideal for building a habit, not for large balances.
High interest savings accounts: what to expect
In the UK, “high interest savings account” means an account paying well above the average. Typical features include a minimum deposit (e.g. £1,000), an introductory bonus, or a notice period. Always check the underlying rate after any bonus expires.
Many top‑rate accounts include a short‑lived bonus that makes the headline rate look generous. After 12 months the rate may fall below 1%. Set a calendar reminder to review your account before the bonus period ends, or consider a fixed rate if you prefer stability.
What factors affect savings account interest rates?
Understanding why rates move can help you time your savings decisions. The main driver is the Bank of England base rate, but competition and tax rules also matter.
The role of the Bank of England base rate
Savings rates closely track the Bank of England base rate. When the Bank of England cuts its rate, banks typically reduce savings rates within weeks. The base rate is currently 3.75% (May 2026), down from 5.25% in mid‑2024. Most analysts expect further cuts, which would push easy access rates below 4%.
AER vs gross: what the rates really mean
AER (Annual Equivalent Rate) shows what you would earn if the interest is compounded annually. Gross is the simple interest rate before compounding and before tax. Always compare AER when choosing an account because it reflects the true annual return.
Tax on savings interest (personal savings allowance)
Basic‑rate taxpayers can earn up to £1,000 in interest tax‑free each year; higher‑rate taxpayers get £500. Any interest above that is taxed at your marginal rate. If your savings are large, consider using a Cash ISA to shelter interest from tax. For more on retirement planning, see How Much Is the State Pension – UK 2025 Rates and Eligibility.
When did savings account interest rates change recently?
The table below shows the major milestones in savings rate changes since 2024, linked to Bank of England base rate decisions.
- August 2024 – Base rate cut to 5.0%; savings rates begin falling from 5.5%+ peaks.
- September 2024 – First wave of rate reductions; many easy access accounts drop to 4.8–5.0%.
- November 2024 – Base rate cut to 4.5%; top easy access falls below 5%.
- February 2025 – Base rate cut to 4.0%; average easy access rate drops to around 3.8%.
- May 2025 – Base rate cut to 3.75%; MSE reports top easy access at 4.51% (including bonuses).
- May 2026 – Current period; base rate stands at 3.75%; fixed rates at 4.7%.
Further base rate cuts are expected in late 2025 or early 2026, which would make current fixed rates less attractive.
What is certain and uncertain about future savings rates?
Established information
- The Bank of England base rate is 3.75% (official BoE figure).
- UBL UK offers 4.68% easy access without a time‑limited bonus.
- The Financial Services Compensation Scheme protects deposits up to £85,000 per institution.
- Regular savings accounts have fixed terms and monthly caps.
- Fixed rate accounts guarantee the rate for the term.
Information that remains unclear
- The exact timing and size of the next base rate cut – most analysts expect one by end of 2025.
- Which banks will reduce their variable rates and by how much.
- Whether easy access rates will drop below 4% in the next 12 months.
- Which new customer bonuses will appear or disappear.
Why are savings account interest rates falling?
The downward trend stems directly from the Bank of England’s base rate reductions. Since mid‑2024, the base rate has fallen from 5.25% to 3.75%. Banks tend to pass on base rate cuts to savers faster than they pass them on to borrowers. Competition from online‑only banks has slowed the decline a little, but high street banks still pay well below the market average.
Many of the top‑paying accounts rely on short‑term bonuses. For example, Chase offers 4.5% for 12 months, but after that the rate falls to 2.25%. Savers need to switch accounts regularly to keep earning high interest. Locking in a fixed rate now may protect your returns if further cuts materialise.
Tax also plays a role: basic‑rate taxpayers can earn £1,000 in interest tax‑free under the Personal Savings Allowance. If your savings generate more than that, a Cash ISA can shelter your interest from the taxman. For more detail see the Personal Savings Allowance guidance from HMRC.
Where do the savings account rate recommendations come from?
The rates in this article are drawn from three well‑known comparison sources: MoneySavingExpert (edited by Martin Lewis), MoneySuperMarket, and Moneyfacts. Each site updates its data regularly as banks change their offers. Below are some of the key quotes that inform current advice.
“Chase pays 4.5% for new customers only – it includes a one‑year 2.25% newbie bonus on top of its 2.25% variable rate.”
– MoneySavingExpert (Martin Lewis), May 2026
“As of May 2026 the base rate stands at 3.75%, but some high street banks are still paying as little as 2%‑3% on some instant‑access savings accounts.”
– MoneySuperMarket, May 2026
“Bank Rate is currently 3.75%.”
– Bank of England, official statement
“Deposits are protected up to £85,000 per person per institution.”
– Financial Services Compensation Scheme (FSCS)
What is the bottom line for savers now?
Current savings rates remain attractive by historical standards, but they are trending downward. If you have a lump sum you won’t need for a year or more, locking in a fixed rate of around 4.7% makes sense. For everyday savings, an easy access account like UBL UK at 4.68% is a strong choice without bonus expiry risk. And if you can commit to monthly deposits, a regular saver at 7% offers the highest return – just be aware of the restrictions.
For more ways to make your money work harder, check the latest Bank Account Switch Offers – Up to £500 Free Cash UK 2025 and consider how a switch might combine with a regular saver deal.
Frequently Asked Questions
What is the difference between AER and gross interest?
AER shows the annual rate including compounding. Gross is the simple rate before tax. Compare AER when choosing accounts.
Are savings account interest rates taxable?
Yes, interest above your Personal Savings Allowance (£1,000 for basic‑rate, £500 for higher‑rate taxpayers) is taxed at your marginal rate. ISAs are tax‑free.
How often do banks change savings interest rates?
Variable rates can change anytime; banks usually notify you. Fixed rates are locked for the term. Base rate changes often trigger immediate variable adjustments.
Can I have multiple savings accounts?
Yes, you can hold accounts at different banks. FSCS protection is £85,000 per institution, not per account.
What is a regular savings account?
It pays a high fixed or variable rate but requires monthly deposits (e.g. £250) for a set term, usually one year. Withdrawals are often restricted.
What is a high yield savings account in the UK?
In the UK it’s usually called a high interest savings account. It offers above‑average rates, often with limits like a minimum deposit, notice period, or fixed term.
What happens if the bank changes my rate?
For variable accounts the bank must notify you of any change, but you cannot prevent it. For fixed accounts the rate is guaranteed.
Can I lock in a rate for longer than one year?
Yes, fixed‑rate bonds are available for 1 to 5 years. Current top rates hover around 4.7% for one year and 4.69% for two years.
Which banks offer the best savings account bonuses?
Chase gives 4.5% (incl. 2.25% bonus for 12 months). Cynergy Bank and Tesco Bank also offer bonus‑enhanced rates up to 4.27% and 4.12% respectively.
Is my money safe in a savings account?
Yes, up to £85,000 per person per institution under FSCS. For amounts above that, spread across different banking groups.
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