Compare saving accounts
Get easy access, ISAs, fixed rate bonds and more
Product typeEasy access
Headline rate3% AER fixed
Product typeEasy access
Headline rate2% AER fixed
Product typeEasy access
Headline rate1.70% AER fixed
Product typeEasy access
Headline rate1.67% AER fixed
A savings account is an account that will pay interest, held with a bank or other financial institution.
You will only have to pay tax on savings interest above your personal savings allowance, which is dependent on your tax band:
The Annual Equivalent Rate (AER) is a way for you to easily compare the interest you will earn per year, irrespective of the period that the interest is calculated over.
The first £85,000 per UK regulated institution, per person will be protected by the Financial Services Compensation Scheme (FSCS). If authorised firms go bust, this money is protected.
In certain, specific circumstances, there is a 'temporary high balance protection' available. This could mean that your first £1m of savings is protected for 6 months if the balance was precipitated by a “life event” such as a death, house sale or divorce. The full list of circumstances can be found on the Financial Services Compensation Scheme website at www.fscs.org.uk.
An institution is based on a provider's licence, and some may fall under the same licence. But remember that you are only protected up to £85,000 worth of savings per institution. So check you aren't saving with several providers that fall under the same banner. have savings of more than £85,000 (the amount protected per institution, per person by the FSCS) and are concerned about a bank's future viability, make sure that you check you're protected.
A few examples of this are HSBC and First Direct, and Lloyds and Cheltenham and Gloucester - but not NatWest and RBS, as their limits are separate.
Provided that institutions are within the EU, you are, in theory, protected by those countries FSCS equivalent schemes. In the event of an issue you will have to claim from the relevant government’s scheme, and not via the FSCS.
Protection under FSCS for UK-based customers of UK authorised firms won't change as a result of Brexit. In the majority of cases, existing FSCS protection will continue. However, if you are banking with a firm outside the UK, you should check the position as Brexit unfolds.
Since 2008, far more stringent capital controls have been placed on Financial Institutions to reduce the risk of banks defaulting. The EU and the Bank of England now run regular stress tests to ensure that if there is a degree of market turmoil, institutions will still be able to trade solvently.
If there were a catastrophic event that resulted in the possibility of a UK institution going bust, there is the possibility that the government would bail it out, as they did with RBS back in 2008.
Savings rates today are not very exciting. The average savings rate on Instant Access Accounts is only 0.75%. So for every £50,000 saved, you'll earn £375 in Interest.
Of course, you have to offset this against inflation (currently 1.7%) to get a true picture - which sees you lose money in real terms, over the short-term.
However, once you take the impact of compound interest into consideration, you see that putting money into a top savings account is worthwhile. Even on a rate of 1.45%, an initial deposit of £50,000 would be worth £57,741 after 10 years. Besides which, it's always advisable to have some money set aside for a rainy day.
For most people, having some money set aside in instant access savings is a good idea as it can be used to get you through spending humps and income dips.
Beyond that, you will almost always be better off paying down as much of your mortgage as you can, as interest rates on mortgages are currently significantly higher than the interest you can earn on your savings.
The only widespread exception is those people lucky enough to be on an old base rate tracker mortgage, if their mortgage interest rate is below the rate of their savings.
An instant access savings account will allow you to make cash withdrawals from the account whenever you want, but the downside is the rates aren’t as high as they may be in other accounts.
Although you can make as many withdrawals as you like, some instant access accounts have restrictions or bonuses based on the amount of money in the account over a defined period.
Notice accounts allow you to make withdrawals whenever you want, but you will have to wait a set notice period before you receive your money. Like instant access accounts, there may be penalties for making more than a certain number of withdrawals in a year. This may be an interest penalty.
An easy access savings account will mean your money is easily accessible, but you may face a short delay before you can take out your money. You may also be restricted in the number of withdrawals you can make, without penalty.
A fixed rate bond is a savings vehicle that guarantees a certain level of return over a fixed period, normally 1, 2 or 3 years (although there are a few that run up to 7 years). The interest on Fixed Rate Bonds is usually calculated annually, but may only be paid at the end of the period.
Fixed rate bonds usually pay a higher rate of interest as your money will not be able to be withdrawn before the end of the period. Or, if you make withdrawals, there may be penalties resulting in no interest being paid at all.
If you think you may need the money before the end of the period, then a notice or instant access savings account may be a better option.
An ISA is an Individual Savings Account and any Interest earned, dividends and capital growth on this account will not be subject to tax. You can have multiple different types of ISA in the same tax year, but you cannot pay into 2 different ISAs of the same type with the same year. The total amount you can put into new ISAs in a single tax year may not exceed £20,000.
We have a Savings account data feed from the data specialists defaqto. They provide us with over 100 daily updated data items that we use to compile our various savings and ISA listings on Everything Financial.
Defaqto have a team dedicated to ensuring the information that they provide to us and others is accurate. However, it is your responsibility to check the details of any products and services before you apply.
Getting data from defaqto, running servers and employing a team to run the website costs money. So, like almost all comparison sites we list the best “affiliated” links first, but ordered according to the sorting options displayed. We then display the unaffiliated links after this.
The listings are ordered by whichever feature you have shown an interest in.
For savings based listings, this is typically according to the AER (Annual Equivalent Rate). In most cases, the secondary order is alphabetical, to for ease of searching. On pages with more than 30 listings we may also provide additional sort and filter options to allow you to more easily find products of interest to you.
We have excluded accounts with geographical boundaries as they are not relevant to most of our users.
Defaqto have a set of criteria that they use to assess the quality of different current accounts. Broadly speaking a 5 star product will have lots of features and a one star product won't.
In many cases, a savings account is a savings account and the features that determine the rating are more easily expressed by showing those features. As such, we have shown those features rather than the star ratings whether we have thought the features are more relevant to your decision making.
We are everything financial and the website you are on is a free, online comparison service. We exist to make finding a financial product or financial advice easier.