Top savings accounts: where to find the best rates for your cash

With rates of up to 12% available, there's never been a more rewarding time to move your savings.

Savers are missing out on huge sums of money by sticking with their bank's standard savings account.

Sarah Coles, head of personal finance at Hargreaves Lansdown, has highlighted how someone with a traditional easy access account from a major bank could triple their interest rate by moving to a best buy equivalent.

"Despite savings rates soaring over the past couple of years, still more than half of people haven’t switched in the past year and a third haven’t switched in the past five years," she added.

If you are thinking of moving, it's important to act quickly.

With most analysts predicting the Base Rate will be cut repeatedly over 2024 and 2025, savings rates will likely keep falling for the foreseeable future.

So, let's look at the best offers currently available, starting with current accounts.

While these can offer incredibly attractive rates, the bad news is they generally expire after one year and are only available on small sums of money, so if you're looking for a home for a larger pot then scroll straight to the section on notice accounts. 

Manage all your savings accounts in one place with Raisin, the simple savings service

Current accounts: earn up to 12%

Virgin Money has just launched a current account switch deal to lure new customers that could provide them with a whopping 12% gross interest.

Those agreeing to switch their banking to one of three Virgin Money current accounts can receive a 10% bonus on balances.

Two of these accounts already pay 2% interest, which is how you get to the impressive 12% figure.

But there's a catch: you can only earn that rate on the first £1,000 in the account and the 10% bonus expires after one year, so the absolute maximum you could earn is £120 interest.  

You’ll also need to meet certain criteria, such as switching before the end of May 2024 and having at least two direct debits, so you’ll need to do your research.

Elsewhere, You can get 5% fixed for a year on balances up to £1,500 with Nationwide’s FlexDirect account, but you'll need to pay in at least £1,000 a month.

Find the best alternatives in our roundup of current accounts that pay in-credit interest 

Regular savers: up to 7% (if you’re a member)

Regular savings accounts are generally best for new savers as they don't allow you to deposit a lump sum upfront: instead, you make regular monthly contributions, and the money is returned to you with interest after one year.

However, if the rates are generous enough, and you are eligible, then they can also work for savers with a pot already built up.

All you do is put your funds in the best-paying easy access account and filter some money into a regular saver (or savers) each month.

So, what rates can you get?

While the top rates have fallen slightly from 8% over the past year, plenty of accounts offer between 6% and 7%.

One of the most attractive is from The Co-operative Bank. It offers a 7% rate and you can deposit up to £250 each month.

Remarkably, that's more than double the current rate of inflation (3.2%). 

While it’s available for both new and existing customers, you will need to have one of the bank’s current accounts before you apply.

Savers can also make an unlimited number of withdrawals without paying a penalty. 

Those wanting to put away slightly more could consider the first direct regular saver account. It offers a 7% rate and you can save up to £300 each month.

Alternatively, the Lloyds Bank Club Lloyds Monthly Saver enables you to save up to £400 each month and offers unlimited withdrawals. 

However, it pays a lower interest rate of 6.25% and is only available to Club Lloyds current account holders.

Notice accounts: up to 5.26%

The top rate of 5.26% comes from Oxbury Bank. However, you need at least £1,000 to open it and the notice period is 90 days.

Alternatively, Monument Bank pays 5.13% and it only requires a notice period of seven days. However, the downside is it needs a £25,000 minimum deposit.

Earn up to 5.05% and manage all your savings accounts in one place with Raisin, the simple savings service

Best fixed-rate savings: up to 5.25%

Before we get into the best fixed-rate savings, we wanted to point out an interesting shift we've seen in this part of the market.

In recent years, you were generally rewarded with a higher rate by agreeing to lock your money away for a longer period, with five-year fixes for the best-paying accounts. 

But, with the Base Rate expected to start falling at some point in 2024 as inflation comes under control, the best rates currently available are actually on shorter-term accounts, with one- and two-year fixes the pick of the bunch. 

Now that we've got that out of the way, let's look at the top fixed-rate deals.

The best rate at the moment is from Atom Bank, which is a six-month bond that pays 5.25% with a minimum opening deposit of £50.

As an indication of how rapidly the savings market has changed, you could bag a rate in excess of 6% as recently as mid-November 2023.

This really highlights how important it is to get your skates on if you're planning to lock your money away in a fixed account.

Looking for a longer term than one year? SmartSave offers a three-year bond for 4.72% and a five-year bond for 4.58%.

Best easy/instant access savings: up to 5.20%

You can bag a rate of 5.02% with Oxbury Bank, although it requires a £20,000 minimum deposit.

Earn up to 5.05% and manage all your savings accounts in one place with Raisin, the simple savings service

Where to earn the most interest on your cash

Here's a table with all the top deals for you to compare at a glance.

The account you go for will probably be determined by the amount you have to save and whether you want instant access to your money.

Please note that we've only included the highest-paying account from each category (i.e. five-year bond, instant access ISA).

Remember, sometimes you'll need to open another account with a provider to access certain savings rates.

Time to consider investing?

If you are comfortable taking on some risk for potentially better returns, you could consider investing in the stock market (capital at risk).