Best savings rates this week

Published by Adam Williams on 15 October 2010.
Last updated on 16 August 2017

Whether it's for a rainy day or for a one-off big purchase, it's crucial to make your savings work hard for you. 

Moneywise reviews regular, children's savings, fixed rate and easy access accounts with the best savings rates currently on the market. These accounts are our Best Buys.

Remember, these rates are before tax, but most people are able to earn £1,000 interest from savings tax-free (depending on your income tax rate). In any case, if you haven't used your Cash Isa allowance this tax year, getting an Isa should be your first port of call. See our round-up of the best Cash Isa rates.

Unless otherwise specified, all these banks are individually licenced by the FCA, so your savings will be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. All interest rates are AER - the annual equivalent rate.

Best easy access savings accounts

If you're looking for an account where you can access your money quickly, then a no-notice deal is a good idea. Just remember, the interest rate on these accounts is variable so it could decrease down the line.

Also, watch out for sneaky terms and conditions - not all easy access accounts offer unlimited withdrawals, so shop carefully. 

Ulster Bank eSavings 1.25%
This online-only account pays an interest rate of 1.25% on balances over £1.

Bank of Cyprus UK Online Easy Access Account 1.2%
This account must be opened online and pays 1.2% on savings, although this includes a 0.7% bonus for the first year. Savings are covered by the UK's FSCS.

Shawbrook Bank Easy Access (Issue 10) 1.2%
Interest rate is 1.2% and is paid on balances over £1,000. Account can only be opened online.

RCI Bank Freedom Savings Account 1.2%
This online-only account offers a top rate of 1.2%, although remember this account is protected by the French bank deposit scheme rather than the UK's FSCS.

Notice accounts

If you are happy to wait a little while before accessing your savings, rates on notice accounts tend to be higher than easy access savings. Some won't allow early access at all, though others may let you withdraw without notice, subject to losing some interest. However, there are very few notice accounts on the market today that will beat our easy access best buys.

Secure Trust Bank 180 Day Notice (Issue 2) 1.65%
If you're able to give 180 days notice then this pays 1.65% on deposits between £1,000 and £1,000,000. Open online.

Secure Trust Bank 120 Day Notice (Issue 24) 1.55%
Beware, this headline rate is only for balances of £1,000 or more. Any balances below this amount will have no interest paid at all. Online only.

PCF Bank 100 Day Notice Deposit (Issue 4) 1.45%
This offers 1.45% on deposits over £1,000. This account can be opened online or by post.

Fixed rate

Fixed rate savings accounts are normally aimed at people with a lump sum that they wish to lock away for a pre-agreed period of time.

Interest is fixed so your return is guaranteed, unlike easy access and notice accounts, which tend to be variable. However, do bear in mind that withdrawals and further deposits are rarely allowed.

One year

Atom Bank One Year Fixed Saver 1.85%
You can open this account through Atom Bank's mobile app. It pays 1.85% on balances of £50 or above. Savings are protected up to £85,000 by the FSCS.

Union Bank of India (UK) One Year Term Deposit 1.8%
Available if you deposit between £1,000 and £250,000. No early access is allowed, and the account must be opened by post or in branch.

Shawbrook Bank One Year Fixed Rate Bond (Issue 49) 1.8%
This can be opened online only. It pays 1.8% on balances of £1,000 or more.

Two year

Paragon Bank Two Year Fixed Rate 2.05%
No early access is allowed, and the account must be opened online. Minimum balance is £1,000.

Shawbrook Bank Two Year Fixed Rate Bond (Issue 45) 2.05%
This account pays a headline rate of 2.05% to savers, fixed for two years. Minimum balance is £1,000.

Atom Bank Two Year Fixed Saver 2%
To get this account you must open the account using Atom Bank's app. This rate of 2% is fixed for two years. Savings are protected up to £85,000 by the FSCS.

Three year

NS&I Three Year Investment Guaranteed Growth Bond 2.2%
This account from National Savings & Investments is fully backed by HM Treasury. However, you are only able to deposit £3,000 and are limited to one account per person. Must be opened online.

Vanquis Bank Three Year Savings Bond 2.2%
No early access is allowed, and the account must be opened online. Minimum balance is £1,000.

Axis Bank UK Fixed Deposit Account 2.16%
This 2.16% headline rate is available balances of more than £1,000. You can open this account online or in branch. Savings are protected up to £85,000 by the FSCS.

Five year

Vanquis Bank 5 Year Savings Bond 2.5%
This account is fully protected by the UK's FSCS and is online only. Minimum deposit is £1,000.

United Bank UK Five Year Fixed Term Deposit Account 2.41%
This account offers a rate of 2.41% on balances over £2,000, for 60 months. This can be opened online, by post or in branch. Your savings are protected up to £85,000 by the UK's FSCS

Atom Bank Five Year Fixed Saver 2.4%
This account pays 2.4% on balances over £50, but must be opened using Atom Bank's app. No withdrawals are permitted before end of term.

Regular savers

The current economic backdrop has not only highlighted the importance of saving, but means more people would like to do it little and often.

First Direct Regular Saver 5%
For deposits between £25 and £300 per month. The rate is fixed for 12 months and is only available to existing customers. Can be opened online or by phone.

Nationwide Flexclusive Regular Saver 5%
Only available to people with a Nationwide Flex current account. Savers can deposit up to £250 per month. Can be opened in branch or online. 

HSBC Regular Saver 5%
For deposits between £25 and £250 per month. The rate is fixed for 12 months and available to current account customers. Can be opened in branch or by phone.

M&S Bank Monthly Saver 5%
Rate available on deposits between £25 and £250 to its current account holders. The interest is paid annually, and the rate is fixed for 12 months. Can be opened online, by post, over the phone or in branch.

Santander Regular eSaver 5%
This is for deposits of up to £200 per month. The rate is fixed for 12 months and is only available to 123 World customers. It must be opened in branch or online.

Leeds Building Society Regular Saver (Issue 6) 2.3%
The best option not linked to a current account pays 2.3% on deposits up to £250 per month. This account can only be opened online, by post or in branch.

Top savings accounts for children

Putting cash aside for your kids is always a good idea, and the interest rates tend to be much higher than offered in adult accounts. Here are our top picks for children's savers.

Halifax Kids Regular Saver 4%
This is the top 12-month bond. You can deposit between £10 and £100 in the account each month. Must be opened in branch.

Saffron Building Society Children's Regular Saver 4%
Available in branch or by post. It can be held for a year, by anyone up to 15. You can save £100 a month. When the account matures, savings are transferred to an account paying 0.5%, so remember to make a note to switch.

How are these products picked?

We look across as much of the of the savings market as possible to find the best deals using industry data from Defaqto.

All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.

Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount).

Deals only available to particular age groups or for “additional subscriptions” are also not included.

All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise products from UK-based providers. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities.

We reserve the right to use our discretion at all times.

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Correction: The Santander

Correction: The Santander Regular e-Saver issue 5 can only be opened in branch or online. It cannot be opened over the phone.

This is confusing. In your

This is confusing. In your 'Moneywise Best Buys' then 'Regular Savers' then 'Compare More Products', this giving a breakdown of each of the banks/building societies etc. you are stating against some of these a X against current accounts, this leading to believe no current account is necessary, this is not correct. Could you please confirm this?

In our Best Buy tables the X

In our Best Buy tables the X represents a negative point, while the tick represents a positive point. Thank you for letting us know that you find this confusing. We will look at it again to see if we can make it easier to understand.

I attempted to register with

I attempted to register with ArchOver but was rejected because I do not use a mobile phone