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

With rates of up to 7% available, now is a great time to move your savings.

Savers can still earn a whopping 7% on their money – three times the rate of inflation – despite expectations that the Bank of England will cut the interest rate this year.

It means many people could be missing out on huge sums of money by sticking with their bank's standard savings account, according to Sarah Coles, head of personal finance at Hargreaves Lansdown.

"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, the current inflation-busting savings rates won't be around for long.

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 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 First Direct. It offers a 7% rate, which is more than three times the current rate of inflation (2.3%). 

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.

The Co-operative Bank also offers 7% and allows an unlimited number of withdrawals. This is open to new and existing customers, while you can save up to £250 a 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 new and existing Club Lloyds current account holders.

Notice accounts: up to 5.27%

The top rate on a 60-day notice account is 5.27% from Monument Bank, but you need at least £25,000 to open it.

Alternatively, Investec Bank pays 5.25% and only requires a minimum opening amount of £5,000. However, the notice period is 90 days.

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 5.21%

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.

One of the best rates at the moment is from ICICI Bank, which is a six-month bond that pays 5.21% with a minimum opening deposit of £1,000.

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? Vanquis Bank offers a three-year bond that pays 4.80%, while United Trust Bank has a five-year bond offering 4.60%.

Best easy/instant access savings: up to 5.20%

You can 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

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 4.35%.

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

For example, Santander is offering £175 to those who move to its Edge account by using the Current Account Switch Service.

This account, which has a £3 monthly fee, gives 1% cashback on selected household bills (up to £10 a month) and comes with an optional savings account paying 7%.

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.

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).