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

Savers can still earn up to 8% on their savings, but rates are starting to fall.

The Bank of England may have cut the Base Rate for the first time in more than four years, but there are still some stonking savings rates available.

In fact, you can currently earn up to 8% with your hard-earned cash.

With the cost of living crisis still squeezing our finances, it's vital we all ensure our savings are working as hard as possible.

Sadly, millions of us aren't doing so.

Bag £100 cashback AND earn up to 5.05% guaranteed when you open a savings account with Raisin (minimum £10k deposit). Head this way for all the details. Affiliate link.

The £453 current account mistake

Many savers commit the cardinal sin of leaving their funds languishing in their current account.

While there are some out there that pay a decent rate of interest, the vast majority pay just 0.1% – or nothing at all.

And this is costing us hundreds of pounds in interest every year.

According to Sarah Coles, head of personal finance at Hargreaves Lansdown, the average household has £8,510 tucked away in poorly paying bank accounts.

“If we moved that to an easy access account without restrictions or a Cash ISA, we could be £453 better off,” she said.

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

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

Regular savers: up to 8%

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?

The good news is that you can still get up to 8% on accounts without any restrictions.

The Principality Building Society 6 Month Regular saver pays an AER of 8%, with monthly deposits of between £1 and £200.

Another attractive offering is from First Direct. It offers a 7% rate, which is still more than three times the current rate of inflation (2.2%).

Monthly deposits must be between £25 and £300, which enables you to save up to £3,600 a year. However, it's only available to First Direct 1st account customers.

Notice accounts: up to 5.25%

Rates on notice accounts have fallen since the beginning of August.

The top rate on a 90-day notice account is now 5.25% from Investec Bank. You'll need at least £5,000 to open it but can invest up to £250,000.

Those with less to put away initially could consider the Oxbury Bank 90-day Notice Base Tracker as this can be opened with just £1,000. It pays an AER of 5.13%.

Vanquis also offers a 60-day notice account but the rate is 5.05%. Once again, the minimum opening amount is £1,000 and up to £250,000 can be tucked away.

Bag £100 cashback AND earn up to 5.05% guaranteed when you open a savings account with Raisin (minimum £10k deposit). Head this way for all the details. Affiliate link.

Cash ISAs: earn up to 5.20%

The Personal Savings Allowance (PSA) has meant that it’s easy to get a tax-free return from your savings even if you don’t use an ISA, though it’s still worthwhile making use of your tax-free ISA allowance (which is £20,000 for 2024/25).

That’s because any money you put into an ISA will stay tax-free long-term, even if the interest you earn grows beyond the PSA limits.

With the PSA, any interest you earn beyond the £1,000/£500 limit is taxed at your marginal rate.

The best rate on an easy-access Cash ISA right now is 5.20% from Trading 212 and there is no minimum opening amount.

Punjab National Bank is the best option for a one-year fixed rate ISA, paying 4.80% and it can be opened with a minimum of £1,000. There’s no maximum investment.

For those looking longer-term, the State Bank of India is offering a five-year bond that pays 4.15%, although the minimum opening amount is £5,000.

Best easy/instant access savings: up to 5.20%

You can still bag a rate of 5.20% with Ulster Bank. There is no minimum opening amount but new and existing customers will need to have a linked product.

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 5.05%

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.

However, the best rates currently available are actually on shorter-term accounts, with one- and two-year fixes the pick of the bunch, even if rates are starting to fall.

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

One of the best rates at the moment is from Mizrahi Tefahot Bank (available through savings platform Raisin), which is a one-year bond paying 5.05% with a minimum deposit of £1,000.

Looking for a longer term than one year? Hampshire Trust Bank is offering a three-year product paying 4.51%, while Bank of London and The Middle East has a four-year bond paying 4.20%.

Current accounts: earn up to 5%

There are a lot of choices to be made when it comes to a current account, such as whether you’ll need an overdraft, so you’ll need to consider the options.

However, if you’re basing it on interest paid then you can earn 5% from Nationwide on balances of up to £1,500. However, you’ll need to put in £1,000 a month.

Kroo Bank is an attractive option for those with higher cash balances, even though it pays a slightly lower rate of 4.09%.

Separately, you can also be rewarded with cash and money off your household bills for agreeing to switch your current account.

For example, TSB is offering £175 to those who move to its Spend & Save account by September 27, 2024.

However, you’ll need to log into the TSB mobile banking app and make at least five payments using the debit card on your new account to qualify.

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

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.

Provider	Type	Interest rate	Minimum/maximum deposit
Principality Building Society	Regular saver	8%	Max. £200 a month
Investc Bank	90-day notice saver	5.25%	Min. £5,000 opening deposit
Union Bank of India	One-year fixed-rate bond	5.05%	Min. £5,000 opening deposit
Ulster Bank	Easy access	5.20%	No min
Trading 212	Easy access Cash ISA	5.20%	No min
Nationwide	Current account	5%	Min £1,000 a month

Bag £100 cashback AND earn up to 5.05% guaranteed when you open a savings account with Raisin (minimum £10k deposit). Head this way for all the details. Affiliate link.

Time to consider investing?

The reality is you're likely to achieve a better return over the long term by investing (five years or more).

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

*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about. This article was written completely independently.