Featured Partners
1
Raisin UK
Manage all your savings in one place
Access to competitive rates with specialist and challenger banks
1
Raisin UK
On Raisin’s journey
2
Chase Easy Access Savings Account
Open up to 10 saver accounts
Withdraw funds whenever you need without any charges
2
Chase Easy Access Savings Account
On Chase’s website
4.1% AER (variable)
3
Chip Instant Access Account
Grow your savings with competitive rates
Instant access to funds with no withdrawal limits
3
Chip Instant Access Account
On Chip’s Website
4.84% AER (variable)
Our top fixed rate savings accounts
Starting with fixed rate bonds, we carried out some research (March 2024) to find the best deals over terms ranging from one to five years, and listed our findings below.
But bear in mind this is an illustration only. With rising interest rates, deals are changing fast, so always run a fresh comparison to make sure you’re getting the best deal.
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Smart Save 1 Year Fixed Rate Saver
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
AER (gross)*
5.28%
Minimum opening deposit
£10,000
Opened/ Managed
Online/Online
AER (gross)*
5.28%
Minimum opening deposit
£10,000
Opened/ Managed
Online/Online
Why We Picked It
This one-year bond from online-only provider, Smart Save, pays a competitive 5.28% AER on deposits from £10,000.
The maximum deposit is £85,000 – all of which is protected by the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily, and paid at the end of its one-year term. There’s no option to withdraw the interest part-way through its fixed term.
Pros & Cons
- Competitive rate for 1-year bonds
- Open online
- High minimum opening balance
- No option to withdraw interest
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HTB 2 Year Bond Issue 85
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
AER (gross)*
5.00%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
AER (gross)*
5.00%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
Why We Picked It
HTB’s two-year bond can be opened online only, from £1. Savers can deposit up to £250,000 – but only the first £85,000 will be covered by the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily, and added to the account annually, where it compounds.
Pros & Cons
- Competitive rate for 2-year bonds
- Open online
- Open from £1
- No option to withdraw interest
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HTB 3 Year Bond Issue 64
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
AER (gross)
4.65%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
AER (gross)
4.65%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
Why We Picked It
Savers able to lock away a lump sum for three years can earn a competitive 4.65% AER on this fixed-rate bond from HTB.
It can be opened and managed exclusively online, with a minimum opening balance of £1. Savers can deposit up to £250,000, although only the first £85,000 is covered by the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily and added to the balance annually, where it compounds. There’s no option to withdraw interest part-way through the three-year term.
Pros & Cons
- Competitive rate for 3-year bonds
- Open online
- Long time to lock away cash
- No option to withdraw interest
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Işbank 4 Year Fixed Term Deposit
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
AER (gross)*
4.50%
Minimum opening deposit
£1,000
Opened/ Managed
Online/Online
AER (gross)*
4.50%
Minimum opening deposit
£1,000
Opened/ Managed
Online/Online
Why We Picked It
Savers who want to lock in a rate for four years can earn 4.50% AER on this fixed-rate bond from İşbank.
Although this provider is based in Türkiye, its UK arm is regulated by the Financial Conduct Authority (FCA).
The bond can be opened online – through the savings platform, Raisin – with a deposit between £1,000 and £85,000.
Interest is calculated daily and paid annually into your Raisin cash balance. It is not added to the bond to compound.
Pros & Cons
- Competitive rate for 4-year bonds
- Open online
- Long time to lock away cash
- Interest does not compound
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HTB 5 Year Bond Issue 36
5.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.
AER (gross)*
4.54%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
AER (gross)*
4.54%
Minimum opening deposit
£1
Opened/ Managed
Online/Online
Why We Picked It
If you’re able to lock away a lump sum for five years without touching it, this HTB bond could be an option worth considering.
It pays a competitive interest rate of 4.54% AER on deposits from £1. The maximum deposit is £250,000 – but bear in mind that only the first £85,000 will be protected under the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily and added to the balance annually, where it compounds.
Pros & Cons
- Competitive rate for 5-year bonds
- Open online
- Long time to lock away cash
- No option to withdraw interest
Our top easy access savings accounts
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Close Brothers Easy Access Account Issue 2
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest (gross variable)
5.12%
Min opening balance
Opened/ Managed
Online/Online
Interest (gross variable)
5.12%
Min opening balance
£10,000
Opened/ Managed
Online/Online
Why We Picked It
Close Brothers’ easy access account pays a competitive 5.12% on balances up to £2 million.
It can be opened and managed exclusively online, and the minimum opening balance is £10,000.
Savers can make as many withdrawals as they like, at any time – but if the balance falls below £10,000 they’ll earn a much lower rate of 1.00% AER (variable).
Interest on the account is calculated daily and added to the balance annually.
Pros & Cons
- Competitive AER
- Access cash any time
- High minimum opening balance
- Interest rate drops if balance falls below £10,000
- Interest paid annually only
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Virgin Money Defined Access eSaver Issue 21
5.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.
Interest (gross variable)
5.11%
Min opening balance
£1
Opened/ Managed
Online/Online
Interest (gross variable)
5.11%
Min opening balance
£1
Opened/ Managed
Online/Online
Why We Picked It
This defined access savings account from Virgin Money could be a good option for savers who don’t expect to make more than three withdrawals per year.
It can be opened and managed exclusively online, and the minimum opening balance is £1. Savers can make up to three penalty-free withdrawals each calendar year, but from the fourth withdrawal the interest rate drops to 2.00% AER (variable).
The maximum deposit is £250,000, but note that only the first £85,000 will be covered by the Financial Services Compensation Scheme (FSCS).
Interest is calculated daily and can be paid into the account either monthly or annually.
Pros & Cons
- Competitive AER
- Open from £1
- Access cash any time
- Interest rate drops from fourth withdrawal
- Online-only format may be drawback for some
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Monument Easy Access Savings
4.5
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.
Interest (gross variable)
5.11%
Min opening balance
£25,000
Opened/ Managed
App/App
Interest (gross variable)
5.11%
Min opening balance
£25,000
Opened/ Managed
App/App
Why We Picked It
This easy access account from app-only provider, Monument, pays a competitive 5.11% AER (variable) – but savers must deposit at least £25,000 to open it.
Once opened, savers can access their cash any time without notice or penalty, and there’s no limit on the number of withdrawals that can be made.
Interest is calculated daily and paid monthly.
Monument is a fully regulated UK bank, and as such your deposits will be protected up to the value of £85,000 under the Financial Services Compensation Scheme (FSCS).
Pros & Cons
- Competitive AER
- Unlimited withdrawals permitted
- Very high minimum opening deposit
- App-only format may be drawback for some
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Cynergy Bank Online Easy Access Account Issue 69
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest (gross variable)
5.10%
Min opening balance
£1
Opened and Managed
Online/Online
Interest (gross variable)
5.10%
Min opening balance
£1
Opened and Managed
Online/Online
Why We Picked It
This easy access account from Cynergy Bank pays 5.10% AER (variable) on balances from £1. However, this includes a bonus rate of 1.10% that drops off after 12 months, which means this account might not be suitable for savers who don’t want to switch accounts regularly.
As an easy access account, savers can access their cash at any time, without notice or penalty. The maximum balance is £1 million – but bear in mind only the first £85,000 is protected by the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily and paid annually.
Pros & Cons
- Competitive AER
- Open from £1
- Unlimited withdrawals permitted
- Interest rate drops after 12 months
- Interest paid annually only
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Charter Savings Bank Easy Access Issue 49
4.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.
Interest (gross variable)
5.08%
Min opening balance
£5,000
Opened/ Managed
Online/Online
Interest (gross variable)
5.08%
Min opening balance
£5,000
Opened/ Managed
Online/Online
Why We Picked It
Savers who can set aside at least £5,000 can earn a competitive interest rate of 5.08% AER (variable) on this account from online-only provider, Charter Savings Bank.
While you can access your savings any time without notice or penalty, note that if the balance falls below £5,000 it will earn a reduced rate of 0.10% AER (variable).
Interest is calculated daily, and added to the account annually.
Pros & Cons
- Competitive AER
- Access cash any time
- High minimum opening balance
- Interest rate drops if balance falls below £5,000
- Interest paid annually only
* AER refers to Annual Equivalent Rate which makes it easier to compare different savings accounts like for like.
Gross is the rate paid before any tax is deducted. It will also include any bonus so check the AER.
All accounts offer FSCS protection up to £85,000 or £170,000 for joint accounts
Each bank listed has its own FSCS licence.
What’s our methodology?
Fixed rate bonds: We searched for the best fixed rate bonds based on gross AER (Annual Equivalent Rate) across one to five years. As well as interest, the AER includes any bonuses, charges and fees across a 12-month period making it easier to compare savings deals.
We also listed factors such as minimum opening balance, maximum deposit, and how easy it is to open the account. Like all fixed rate bonds, these accounts don’t allow withdrawals or additional deposits until the end of the fixed period.
Easy access accounts: We ordered these accounts based predominantly on gross AER (Annual Equivalent Rate). The AER includes interest and any bonuses on savings account across a 12-month period as well as any potential charges.
We also factored in minimum opening contributions, how the account can be opened and managed, and customer service data.
For both kinds of account, we used independent website Savings Champion for the best deals, and Fairer Finance for customer service scores.
None of the savings accounts listed are linked to a current account. Anyone can open them, regardless of whether or not they’re an existing customer with the provider.
Finally, all accounts listed offer FSCS protection up to £85,000 or £170,000 for joint accounts (more on this below), and each has its own FSCS licence.
What is a savings account?
A savings account is where you can deposit cash and earn interest on the money. Different terms and conditions will apply; how much you can deposit, how often you can access the cash and when interest is paid, for example, depending on the account.
Despite many accounts paying 4% interest or more, recent research from Yorkshire Building Society suggests that around £400 billion worth of UK savings are currently held in accounts paying 1% interest or less.
Savings interest is paid tax free and, for the majority of savers, there won’t be any tax to pay due to the personal savings allowance.
What are the different types of savings account?
As well as fixed rate bonds and easy or instant access savings accounts there are several different types of savings account available.When selecting one, savers should consider what level of access they need to their cash and how much money they can put away.
- Notice savings: Notice accounts don’t allow savers instant access to funds. Instead, the bank or building society must be given advance notice whenever a withdrawal is made. Notice periods are typically 30, 60 or 90 days. Interest rates can be higher on notice accounts than easy access accounts, but they don’t allow quick access to savings
- Regular saver: Regular savings accounts require savers to deposit money each month up to a pre-set limit, normally £250 or £300. The interest rate on offer can be fixed or variable and is normally higher than the rate paid on easy access accounts. These accounts typically last for one year with restrictions about when money can be withdrawn
- Cash ISAs: Every adult in the UK can save up to £20,000 in an ISA each year and not pay tax on the returns generated. In the past this meant that a cash ISA was the ideal place to start saving. But the introduction of the Personal Savings Allowance (PSA), which allows individuals to earn a set amount of interest on savings without paying tax on that interest, has lessened the appeal of cash ISAs. However, ISAs can still be a tax-efficient option for people with high levels of savings. Cash ISAs can be easy access, notice accounts or fixed.
What is a fixed rate bond?
As a rule of thumb the highest interest savings accounts are fixed rate bonds. These accounts can also be known as ‘fixed rate’ or ‘fixed term’ deposit or savings accounts.
As well as paying higher interest than easy access savings accounts, fixed rate bonds generally allow for bigger deposits than regular savings accounts.
Savers sacrifice access to cash in return for a better interest rate, and must be prepared to lock money away for a fixed period of time — usually one to five years. However, terms can be as short as six months and as long as seven years.
Opening a fixed rate bond involved making an initial lump sum deposit, which can’t be withdrawn until the end of the term. Additional deposits can’t be added either.
The end of a fixed rate bond term is known as ‘maturity’ – this is when the money becomes accessible.
What is an easy access account?
Easy access accounts allow savers to add or withdraw cash any time without penalty. While they don’t also pay the top rates of interest, they come with full flexibility. However, some easy access accounts come with one-off restrictions such as a minimum cash withdrawal amount.
Returns on access savings accounts are variable which means they generally go up or down with interest rate movements.
Frequently Asked Questions (FAQs)
How does interest work on a fixed rate bond?
Interest is usually added to a fixed rate bond each year and compounded. This means savers earn interest on the interest paid to them previously.
For example, depositing £10,000 in a fixed-rate bond paying 4.00% would earn £400 in the first year. In year two, interest would be earned on £10,400 (£416), After two years, the final balance would be £10,816.
Interest on bonds is taxable but the personal savings allowance (PSA) means most people don’t pay interest on savings interest.
How does interest work on an easy access account?
Interest rates on easy access savings accounts are expressed as an Annual Equivalent Rate (AER). This includes the interest and any bonuses on savings account across a 12-month period (as well as any potential charges). The idea of an AER is that it allows easy comparison between accounts.
The AER advertised is gross which means before any tax is deducted. However, the vast majority of people do not pay tax on savings interest.
Interest on easy access savings accounts is often paid annually, either on a date of your choosing, or the date the account was opened.
How do you open high interest savings account?
Fixed rate bonds can be opened from the age of seven – although a parent or guardian will need to sign the application for a child. Some providers require a minimum age of 16 or 18.
Usually, fixed rate bonds can be opened online.Other options include in a branch, or by post or phone.
When opening a fixed rate bond, savers must deposit the entire amount of money they want to save in one transaction or within a short period of time. Once a fixed rate bond is up and running, additional money can’t be added.
To open an easy access account, you usually need to be 16 or over and a UK resident. They can be opened online, via an app, in a branch or by telephone.
Can I open a joint savings account?
The majority of savings accounts allow you to open an account jointly with someone else, including many of our best buys (although not all do). You can’t have a joint ISA due to their tax-free status, and some fixed rate bonds can only be opened by one person.
You’ll get double the FSCS limit on a joint savings account as you get the £85,000 protection per person per banking institution.
Can I open a savings account for my business?
If your business has surplus cash it’s unlikely to be earning any interest in a business current account. There are savings account options available to businesses, depending on how the business is set up.
If you’re a sole trader or freelancer for example, you might be able to save your business cash in a personal savings account. These are likely to pay the highest rates. Partnerships and limited companies will need to use specialist business savings accounts.
What is the minimum deposit?
Each fixed rate bond will have a minimum and maximum investment. These figures are a lot higher than on other types of savings account.
Typically, opening one requires savers to make a minimum deposit of at least £1,000. Some bonds have a much higher minimum, of up to £25,000.
Maximum deposits vary between bonds, with many allowing savers to deposit up to £1 million.
Easy access savings accounts can often be opened with as little as £1.
How does inflation affect my savings?
Unless you have a savings account that pays a higher interest rate than inflation you’re effectively losing money. That’s because inflation is eroding the value of your cash.
When inflation is very high, your spending power is reduced and your money doesn’t buy as much. That’s why it’s important to seek out the highest possible interest rates to counter the losses caused by inflation.
What are the potential pitfalls?
The main disadvantage to fixed rate bonds is that any savings held in them can’t be accessed before the end of the term. Fixed rate bonds also mean taking a gamble on interest rates, as a better offer may become available part-way through the term if interest rates rise.
Easy access accounts can mean bypassing some of the maximum potential returns available but for many savers, this is offset by their flexibility.
Can I access cash in a fixed rate bond?
Cash in a fixed rate bond can’t generally be accessed until the end of the term.
Savers are usually contacted by their provider a few weeks before their bond is due to mature to discuss options. These include withdrawing the money, or investing it in another fixed rate bond.
Some providers allow early withdrawals from fixed rate bonds, but this will come with a penalty. Rules about early withdrawals vary from provider to provider.
For example, HSBC allows savers to withdraw all their money and close the product early if the initial deposit was less than £50,000. However, closing the bond incurs a penalty of 90 days’ interest.
For balances of £50,000 and above, the product cannot be closed until the end of the fixed rate period.
Is money held in high interest savings accounts safe?
The Financial Services Compensation Scheme (FSCS) protects money up to £85,000 per person per institution, or £170,000 for joint accounts whether this is a fixed rate bond or easy access account.
While this will be adequate for the vast majority of savers, bear in mind that many fixed rate bonds allow deposits of up to £1 million which would exceed this protection.
What are Sharia accounts?
Sharia savings accounts follow Islamic banking principles so they cannot pay interest. Instead these accounts pay what’s termed an ‘expected profit rate’.
With an expected profit rate, the return on the money is not guaranteed. But, to date, no Islamic bank operating in the UK has failed to pay its expected profit rate.
As with other Islamic finance, Sharia accounts won’t ever invest in industry sectors such as alcohol and gambling.
Should I open a fixed rate or easy access account?
Opening a fixed rate bond could be a good option for savers who:
- have adequate savings in an easy access savings account for emergencies
- can invest a lump sum of at least £1,000
- won’t need access to their money for the length of the term of the bond.
Is savings interest taxed?
Technically, yes, savings interest is taxed. But everyone has both an annual Personal Savings Allowance (PSA) and an ISA allowance which means the vast majority of savers (an estimated 95%) do not pay any tax on the savings interest they earn.
What is the Personal Savings Allowance?
The government introduced the Personal Savings Allowance in 2016. The PSA allows savers to earn an amount of interest each year without paying tax.
For basic rate taxpayers (20%), the tax-free threshold is £1,000 in interest per annum. For higher rate taxpayers (40%), the interest limit is £500 per annum.
Additional rate taxpayers (45%) don’t get a Personal Savings Allowance which means all interest they earn from savings is potentially liable for tax.
What is ‘gross’ and ‘net’ interest?
Gross interest is the annual interest paid on savings before tax. Net interest is after tax.
For savers who don’t pay tax on their savings due to using the PSA and ISA limits, gross and net interest will be the same.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by ourpartners.
Emma LunnContributor
Forbes Advisor UK’s broadband and mobiles expert, Emma Lunn has reported prolifically on the subjects for more than 16 years. Her award-winning work features in national newspapers, right through to specialist websites and trade titles.
Bethany GarnerEditor
I’ve been writing for a broad array of online publications for four years, always aiming to make important insights accessible. It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress.
