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Compare our best savings account deals

Compare our best savings accounts

Take a look at our savings accounts and discover how you can find the best option to help meet your goals

  • Consider which type of account you need

  • Compare different savings accounts and interest rates

  • Find an account that works for you

In partnership with

  • Consider which type of account you need

  • Compare different savings accounts and interest rates

  • Find an account that works for you

In partnership with
Happy lady in green
Trustpilot
Author
Olly McConnell
Fact checker
Alex Cox
Last updated
November 25th, 2025

What is a savings account?

A savings account is a secure place to store cash you don’t need for everyday expenses. When you deposit money into a savings account, banks, building societies and other financial institutions pay interest on your balance, so your savings grow over time. 

Provided you don’t exceed your personal savings allowance (PSA), you don’t pay tax on the savings interest you earn. Basic-rate (20%) taxpayers can earn up to £1,000 a year without paying tax, while higher-rate (40%) taxpayers can earn up to £500. Additional-rate (45%) taxpayers have no PSA and must pay tax on all savings interest.

Average amount people save per month[1]
£226
fscs-logo
Is my money safe?
The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a UK-authorised bank or building society (or the first £170,000 for a joint account) will be safe even if the business goes bust.

Types of savings accounts

Easy access savings accounts

An easy access savings account enables you to deposit and withdraw funds whenever required. However, some accounts may still impose withdrawal restrictions, while others offer bonus rates that temporarily boost the interest rate.

Fixed rate savings accounts

A fixed rate savings account requires you to lock your funds away for a set period – typically six months to five years. You usually can’t deposit more money or withdraw it during this term. In return, you receive a fixed rate of interest that can be higher than easy access options.

Notice savings accounts

A notice savings account requires you to give notice before you can access your money. This can range from 30 to 180 days, though shorter and longer notice periods may be available. You can usually add more funds to these accounts without restriction.

Regular savings accounts

A regular savings account typically requires you to deposit a certain amount of money into the account each month, usually for a year. Some accounts don’t let you withdraw funds during this time, but interest rates can be higher compared to other accounts.

Children’s savings accounts

Designed specifically for young people, a parent or guardian must usually manage a children’s savings account until the child reaches a certain age. You can choose from easy access and fixed rate accounts, and you can often open them with a small deposit.

Cash ISAs

The interest earned on money held in a cash ISA is tax-free and doesn’t form part of your PSA. You can choose from a range of cash ISAs, including easy access and fixed rate, but you can only pay in up to £20,000 per tax year across all ISA accounts.

Pros and cons of a savings account

Pros

You earn interest on your cash, building your savings pot over time
The FSCS protects your savings up to £85,000 per financial institution
You can often open an account online or in a branch

Cons

Some accounts come with restrictions on withdrawals
Variable interest rates can fall in line with base rate changes
Inflation can erode the real value of your savings
What major purchases or life moments are you saving for?
Interest earned on £2,000 over 3 years in a standard current account vs savings accounts

Source: Natwest’s Savings Index report, 2025

What is the difference between a savings account and an ISA?

The main difference between a savings account and an ISA is that interest from a savings account above your personal savings allowance is subject to tax, whereas all interest earned within an ISA is completely tax-free.

There are also restrictions on the amount you can pay into an ISA each tax year. This is currently £20,000. Standard savings accounts may have their own terms and conditions regarding deposits.

How to choose a savings account

Frequency of deposits

If you want to pay funds into your account on a regular basis, you need to look at easy access or regular savings options. Fixed rate savings accounts don’t tend to allow frequent deposits, so are only suitable if you have a lump sum to invest and are happy to leave this locked away for a while.

Accessibility

If you want to access your funds without notice — for example, to cover emergency expenses — consider an easy access account. On the other hand, if you want to lock away a portion of your savings for a few months or years, think about opening a fixed rate or notice savings account to earn more interest.

Minimum and maximum deposits

You can open some savings accounts with as little as £1, while others ask for a few hundred or a few thousand pounds – particularly fixed rate bonds. Look for an account that matches how much you have ready to deposit and check maximum balance restrictions if you’re likely to pay in a large sum or save regularly.

Account management

If you open a savings account with a digital provider, you must be happy managing your account online or through the provider’s app. If you’d prefer to be able to speak to someone over the phone or pop into your local bank branch for support, consider opening a savings account with a high street bank instead.

Interest rate

Once you’ve considered these factors, look for the most suitable savings account with the highest interest rate. Also consider whether the account pays a fixed or variable rate. Fixed rates remain the same for the duration of the account, but variable rates can go up or down, usually mirroring changes in the Bank of England base rate.

How many savings accounts can you have?

You can open as many savings accounts as you like. It can be useful to have different savings accounts for different purposes – for example, an easy access account for emergency funds and a fixed rate savings account for longer-term savings, such as a house deposit.

How to open a savings account

You can often open a savings account online, but you may be able to fill in a form over the phone or by post, or pop into your local bank branch. Depending on the bank and whether you already hold an account there, you may need to provide ID and proof of address.

Average emergency fund size[2]
£4,579

Savings accounts FAQs

What is AER on a savings accounts?

AER stands for annual equivalent rate. It tells you how much interest you’d earn over a year, after taking into account compound interest (where you earn interest on your interest). Looking at the AER is the best way to compare savings accounts.

How does the base rate affect savings account interest rates?

If your savings account pays a variable rate of interest, it usually moves in the same direction as the base rate. So, if the base rate rises, the interest rate on your account also goes up. But if the base rate falls, so does the rate on your account.

How does the base rate affect savings account interest rates?

There’s no set rule on this. But if you are setting up an emergency savings pot, experts recommend holding at least three to six months of essential expenses in your account. Just remember that the Financial Services Compensation Scheme (FSCS) only covers up to £85,000 per person per financial institution.

About the author

Author imageOlly McConnell
Olly McConnell
Olly joined the team in 2022 and used his SEO expertise to make sure more consumers found the right financial products. Now, he is a product marketing manager and Olly works alongside commercial and marketing teams to grow our product offering within financial services.

Didn't find what you were looking for?

Below you can find a list of our pages about different savings accounts :

Easy access savingsFixed rate bonds & savingsCash ISAsStocks and shares ISAsLifetime ISAsBusiness savings

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References

1. Average savings per month statistics: Source: Natwest Savings Index Report 2025
2. Average emergency fund Source: Natwest Savings Index Report 2025