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Compare the best savings account deals

A savings account can help to achieve your savings goals, from buying a house to paying for an unforgettable holiday. Take a look at the best savings account deals in the market so you can find the best place for your money
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Last updated
January 31, 2023

What is a savings account?

A savings account is a place where you can put your money and earn interest on the money you save. The interest rates can vary but it is a convenient way to look after your money if you want to save for the future. There are different types of savings accounts available to suit long-term and short-term savings. 

Everyone has a personal savings allowance (PSA) which lets basic-rate taxpayers (20%) earn up to £1,000 in interest without paying any tax on it. If you are a taxpayer at a higher rate (40%) you can earn £500 in savings per year with no tax.

Money added to UK savings in 2021[1]
£113bn
fscs-logo
Is my money safe?
The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a registered bank or building society (or first £170,000 for a joint account) will be safe even if the business goes bust.

Types of savings accounts

Notice savings accounts

A notice savings account requires you to give notice to your bank or building society before you can withdraw money. The notice period varies from a week to more than a month, depending on your account.

Fixed-rate bonds

A fixed-rate bond is a type of savings account that allows you to put your money away for a set amount of time. You aren’t able to take the money out or add more money during this time, but in exchange you are normally rewarded with a higher interest rate in comparison to other savings accounts.

Children's savings accounts

A children’s savings account is very similar to a savings account for adults and they are offered by banks and building societies. It is also a good way to educate children about money and encourage them to save in the future.

ISAs

ISA stands for Individual Savings Account and it was first introduced by the government as a way of encouraging people to save. The government said that this type of savings account would avoid any income tax, but there would be a limit on how much you could save in one each year. There are different types of ISAs, including cash ISA, lifetime ISA and stocks and shares ISA.

Best savings account for a large purchase: 'I want to save for our dream holiday'

Saving for a holiday is a popular reason for setting up a savings account. For this type of savings goal, you’ll want to access the money but might not need it immediately. This is why a notice savings account is worth considering as you can access the savings but you may have to wait for 30 days to make a withdrawal. The good news is that you’ll get higher interest rates on notice accounts compared to easy-access accounts.

Editor’s pick
One of the highest interest rate for 7 days Notice account
Card
Darlington Building Society 7 Day Notice Account
Open with
£1
Interest rate
2.7% AER variable
Term
7 days notice

A notice period of 7 days is required for withdrawals.Closure conditions are the same as withdrawals.

Show Details
Eligibility
Minimum Initial Deposit
£1
Maximum Initial Deposit
£500,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
2.7%2.7%
AER rate
Including bonusExcluding bonus
2.7%2.7%
Editor’s pick
One of the highest interest rate for 30 days Notice account
Card
Tipton & Coseley 30 Day Notice Midlands Air Ambulance Saver (Iss 2)
Open with
£100
Interest rate
2.75% AER variable
Term
30 days notice

A notice period of 30 days is required for withdrawals, closure is also subject to 30 days notice. Withdrawals are limited to three in any calendar year. Upon making the third withdrawal, no further withdrawals, including account closure, are allowed until the following calendar year.

Show Details
Eligibility
Minimum Initial Deposit
£100
Maximum Initial Deposit
£100,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
2.75%2.75%
AER rate
Including bonusExcluding bonus
2.75%2.75%
The editorial team regularly checks the rates and top picks on this page, updating them at least fortnightly.

Best savings account for high interest rates: 'I have long-term saving goals'

If you don’t want to access the money regularly and you’re thinking about a long-term savings goal, then a fixed-rate bond may be the answer. These normally pay some of the best interest rates available, as the longer the bond, the higher rate you’ll get. This means it does come with a commitment, as you won’t be able to access the money for a long period of time.

Editor’s pick
One of the highest interest rate for 1 year fixed-rate bond
Card
FirstSave 1 Year Loyalty Bond Issue Feb23 Ex/C
Open with
£1,000
Interest rate
3.6% AER fixed
Term
1 year

No withdrawals or closure permitted, unless the customer is moving permanently abroad, where withdrawals or closure will be subject to 90 days' penalty interest plus a £250 admin fee.

Show Details
Eligibility
Minimum Initial Deposit
£1,000
Maximum Initial Deposit
£2,000,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
3.6%3.6%
AER rate
Including bonusExcluding bonus
3.6%3.6%
Editor’s pick
One of the highest interest rate for 2 years fixed-rate bond
Card
FirstSave 2 Year Loyalty Bond Issue Feb23 Ex/C
Open with
£1,000
Interest rate
3.6% AER fixed
Term
2 years

No withdrawals or closure permitted, unless the customer is moving permanently abroad, where withdrawals or closure will be subject to 90 days' penalty interest plus a £250 admin fee.

Show Details
Eligibility
Minimum Initial Deposit
£1,000
Maximum Initial Deposit
£2,000,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
3.6%3.6%
AER rate
Including bonusExcluding bonus
3.6%3.6%
The editorial team regularly checks the rates and top picks on this page, updating them at least fortnightly.

Best children's savings accounts: 'I would like to start saving for my children’s future'

If you would like your child to have some money when they turn 18, it’s always best to start saving as early as possible. That being said, it’s never too late to save, so take a look at the market today and decide which account is most suitable for your savings. From an easy access children’s savings account - where you can pay in and take money out whenever you wish - to a regular savings account, which allows you to make regular monthly payments in return for a higher interest rate.

Editor’s pick
One of the highest interest rate for Childrens 1 year Regular saver
Card
HSBC Premier MySavings Ex/C
Open with
£10
Interest rate
3.75% AER variable on £10 to £3,000
Term
Instant access

No notice, penalty, or charge applies.

Show Details
Eligibility
Maximum Age
17 years
Minimum Initial Deposit
£10
Maximum Initial Deposit
Unlimited
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
3.69%3.69%
1.25%1.25%
AER rate
Including bonusExcluding bonus
3.75%3.75%
1.25%1.25%
Editor’s pick
One of the highest interest rate for Childrens Easy access Junior Cash ISA
Card
Bath Building Society Junior Cash ISA
Open with
£1
Interest rate
4.8% AER variable
Term
Easy access

Withdrawals and closure are not permitted before the investor's 18th birthday. Transfers out are permitted without notice or penalty.

Show Details
Eligibility
Maximum Age
17 years
Minimum Initial Deposit
£1
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.8%4.8%
AER rate
Including bonusExcluding bonus
4.8%4.8%
The editorial team regularly checks the rates and top picks on this page, updating them at least fortnightly.

Best tax-free savings accounts: 'I've started paying tax on my savings'

If you are paying tax on your savings interest, then it makes sense to open a cash ISA. A cash ISA allows you to save money tax-free, however you can only add £20,000 into the account each tax year. There are also different types of cash ISAs, so it's worth exploring to find the correct account for your savings.

Editor’s pick
One of the highest interest rate for 1 year fixed rate Cash ISA
Card
Barclays 1 Year Flexible Cash ISA Issue 36
Open with
£1
Interest rate
4% AER fixed
Term
1 year

3 withdrawals, each up to 10% of the current balance available in the account over the term with no charges for withdrawals. Closure permitted subject to 90 day interest penalty.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4%4%
AER rate
Including bonusExcluding bonus
4%4%
Editor’s pick
One of the highest interest rate for 2 years fixed rate Cash ISA
Card
Virgin Money 2 Year Fixed Rate Cash E-ISA Issue 550
Open with
£1
Interest rate
4.11% AER fixed
Term
24 Feb 2025

Online withdrawals or closure are subject to 90 days loss of interest on the amount withdrawn.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.11%4.11%
AER rate
Including bonusExcluding bonus
4.11%4.11%
The editorial team regularly checks the rates and top picks on this page, updating them at least fortnightly.

Pros and cons of a savings account

Pros
You can earn interest on your savings
It’s a safe place for your money as it is protected by the FSCS (up to £85,000)
They are easy to open and most accounts can be opened online or by visiting a branch
Cons
Some savings accounts have accessibility restrictions, so you might not be able to access the money straight away
Interest rates regularly change as it is impacted by the Bank of England’s base rate
There can be a low rate of return as interest rates are moderate
Current account interest vs savings accounts interest
Interest earned on £2,000 over 3 years in a standard current account vs savings accounts

Source: Defaqto and Uswitch. Updated: December 9, 2022.

Savings accounts FAQs

How does Uswitch choose its editor’s picks?

We know that the best deals are always changing, so the editorial team at Uswitch regularly checks the rates on this page and updates them at least fortnightly. To find the best deals we compare products by taking various factors into consideration, like the interest rate (AER), the balance needed to get the highest interest rate, minimum initial deposit, withdrawal conditions and the term of the account as applicable. These factors change subject to the category.

We use this system for the whole of the market covering nearly all, so you can get an overview of what the banks and credit unions are typically offering in the UK. All the banks featured are FSCS protected, so you can be reassured that your money is safe, provided it’s within the defined limits and regulations. To find out more about how FSCS looks after your money, visit fscs.org.uk.

How can I find the best bank for a savings account?

It's always a good idea to do your research before signing up for a new savings account. We can help you browse the best deals in the market so that you find the best place for your money.

What do I need to do to open a savings account?

If you would like to open a savings account, you can normally do this by visiting your chosen bank's branch, visiting their website or calling them. Some banks only allow you to open an account in a specific way, so always check the terms and conditions before proceeding. You'll then need to provide a proof of ID and proof of address so that the bank can complete necessary checks.

Can I get a joint savings account?

Yes, it is possible to set up a joint savings account and this will mean that the account belongs to yourself and the other account holder. You'll then both be able to deposit savings and build the pot together.

Is there a limit to how much I can save?

It depends on what account you open, as there can be some restrictions. For example, you can only save up to £20,000 in a cash ISA each tax year.

Our latest guides

Browse our guides on savings accounts and find out how you can achieve your savings goals
A guide to top savings accounts and ISAs
Retirement planning
Best cash ISA transfer
Best cash ISA transfer
The Financial Services Compensation Scheme (FSCS)
The Financial Services Compensation Scheme (FSCS)

About the author

Lucinda O'Brien
Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.
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References
1. BSA annual savings statistics: How much people added to savings in 2021