Savings accounts are a low-risk way of earning interest on your money. Your cash is protected by the FSCS and you can generate income on a monthly, quarterly or annual basis. Use our guides to find the best savings accounts for your money.
- Savings accounts are designed to be a pot of money you build up over time.
- You can make regular contributions to build up a lump sum.
- You may need to maintain payments to ensure you get the best rates.
Some of the better rates available on cash savings can come with the regular savers linked to bank current accounts, although there are also regular savings accounts paying decent rates that don’t require you to switch banks. If you can afford to put away a regular amount each month for a year, up to the maximum allowed (typically £250-£500 a month), you could turbocharge the interest on your cash savings pot.
Savings Platforms
Savings platforms give you access to the best interest rates from lots of different providers from a single account.
Prize Savings Accounts
Prize savings accounts are a form of saving where you can potentially win cash prizes instead of earning interest on your savings.
Easy Access Accounts
Easy-access savings accounts tend to offer variable interest rates. These accounts let you access your money quickly, without giving any notice.
Fixed Rate Bonds
Fixed-rate bonds pay a fixed amount of interest over a set period, usually between 1 and 5 years. You know exactly what you'll receive and when you'll get your deposit back.
Variable Rate Cash ISAs
With a cash ISA, you can save up to £20,000 per tax year and receive tax-free interest. Interest rates can fluctuate on variable rate cash ISAs.
Fixed Rate Cash ISAs
Fixed-rate cash ISAs pay a tax-free fixed rate of interest on savings of up to £20,000 per tax year.
Notice Savings Accounts
Notice savings accounts tend to pay higher rates of interest but it can take from 30 to 180 days to withdraw your money, depending on the account.
Monthly Income Accounts
Monthly income accounts pay interest monthly and are good for savers who are looking to increase their monthly income.
Lifetime Cash ISA
The LISA replaced the help to buy ISA and lets you save up to £4,000 a year to earn a government bonus of 25% of your contributions.
Children's Savings Accounts
Start saving for your children's future as soon as possible with a tax-free children's savings account.
Junior Cash ISAs
Junior cash ISAs can be topped up by friends and family and allow you to save up to £4,260 per year for your children's future.
Interest Paying Accounts
Compare savings accounts that pay a high rate of interest. Many offer easy access in return for regular contributions.
Latest Savings Account News & Reviews
Are Savings Accounts Safe?
All savings accounts that operate in the UK must be regulated by the Financial Conduct Authority (FCA). The FCA is responsible for ensuring that UK savings platforms are properly capitalised, treat customers fairly and have sufficient compliance systems. We only feature savings accounts that are regulated by the FCA, where your funds are protected by the Financial Services Compensation Scheme (FSCS) if the provider goes bust.
The FSCS means your funds are protected up to £85,000 if the provider goes bust. Your money is also safer in a savings account vs an investing account as the value of investments can go down as well as up. However, your returns from savings accounts are typically not as good because the risk is lower.
How Do Savings Accounts Work?
Ideally, you put some money in your savings account regularly to build up your pot and earn plenty of interest. You can use any savings account to do this but you may get a better rate with a fixed rate account (which restricts access to your money) or a regular saver account.
With a regular saver account, you deposit money into it each month for a year, typically, and then receive your interest at the end of the term. There may be conditions attached. If the regular saver is a sweetener to get you to switch banks, you’ll probably need to open a current account using the bank’s switching service to get the linked saver.
- Top tip: in some cases, you can earn more than you would on interest for small balances by taking advantage of a bank account switching bonus.
With these linked savers, there may be criteria to meet such as getting your salary paid into the current account and having a minimum number of direct debits going out each month. Then there may be rules attached to the regular saver, such as having to pay in a minimum or set amount each month. If you miss a payment or pay less than required, you could forfeit your interest. You can’t usually make withdrawals once you’ve started paying in, so in that sense a regular saver is similar to a fixed-rate bond.
When the fixed term is up, your regular saver will usually be automatically converted into a standard savings account on a much worse rate, so this could be a good time to look for a better deal.
Katie Brain, consumer banking expert at research and ratings provider Defaqto, says regular savings accounts look attractive compared with standard savings products.
“Regular savings accounts have historically offered better rates than standard accounts to attract regular deposits, but unfortunately the rates have dropped significantly in recent months leaving savers with fewer options.
“To make the most of your savings, it’s worth shopping around and seeing if you are eligible for a better rate at your local building society. While a number of building societies offer deals which are available to savers nationwide, some decent ones are only accessible through local branches.”
