Our team of experts have chosen those savings accounts they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst products shown with a yellow background are sponsored products.
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £75,000 per person per institution.
Before immersing yourself in our lovely selection of the best savings accounts & best savings rates, take a step back. Do you know what you need from a savings account?
Savings accounts can get pretty complicated, and are designed to meet different needs. There are many considerations to make when deciding which account to choose - it's far more than simply finding the best savings rate. So it’s good to get a handle on what it is you want, before jumping in…
Some accounts are only available to you if you can commit at least a certain minimum level. Be sure to check this before you get too excited about a rate you may not be able to have!
Just the word inflation can induce sleep in most people, but when it comes to your savings, inflation is very important. Inflation, simply put, is the rate at which the value of things goes up; a good way to think of it is to think of how much £100 would have bought you 10 years ago, and then to think of how much it would buy you now. The difference between the two is the result of inflation.
Now, if the rate of inflation is higher than the rate of interest you receive on your savings, that means the actual value of your savings is going down. So you want to make sure that your rate of interest is greater than the latest rate of inflation to make sure you actually make money on your savings!
The taxation of savings interest changed in April 2016. Basic rate taxpayers can now earn up to £1,000 in savings interest tax-free, while 40% taxpayers can only get £500 in tax-free interest and anyone paying 45% tax will have no tax-free allowance. Any amounts of interest above these tax-free amounts are taxed at the marginal rate applying to that person (20% or 40%).
From April 2016, interest will be paid to you without any tax being deducted by your bank or building society, so if you will owe tax you will need to declare it to HM Revenue & Customs.
Cash ISAs will continue to be paid with interest tax-free, regardless of your tax status, so this is always a good first port of call for savings.
If you need to access your money instantly, then tying your savings up in a fixed rate bond may not be the best idea! On the flipside, if you don’t need access to your money for a while (you’re saving for your retirement for instance), having your money in an instant access (or no notice) savings account isn’t particularly good either.
If you use your savings as part of managing your cash flow (you dip into your savings, but then pay back into them regularly), an ISA isn’t best as you can only pay in up to your ISA limit once each tax year.
The usual options for the payment of interest are yearly or monthly (although other options such as quarterly do exist). Annual interest best suits those best who don’t need to touch their savings very often, whereas monthly interest is good for those such as pensioners, who have to derive a regular income from their savings.
We’re all different. Some of us prefer managing our accounts by popping down to the local branch in our lunch hour, while others like to keep track of our finances in the evening using online banking. Whatever your preference, be sure the account you select can be operated the way that suits you.
Compare the best savings rates
Stay in the know with all the latest information, of-the-moment consumer trends, best-in-class products & providers and helpful tools from Moneyfacts.
It hasn’t been a good few years for the savings market. Rates have been on a seemingly permanent dow... More
Figures show that inflation edged up in June to stand at 0.5%, up from 0.3% in May. Despite the rise... More
If you’re looking to secure the best rate on your savings, you generally have one of two options...... More
What’s happened to your savings in the last few months? Well, as far as the savings market as a whol... More
Seeing the children head off to university can be a bittersweet moment for many parents, but it can ... More
Islamic savings accounts offer a Sharia’a-compliant way of saving for Muslims living in the UK, as w... More
Find out where your bank or building society is licenced, and what deposit protection guarantees you... More
With some forecasters predicting interest rate cuts by November 2012, we look at the pros and cons o... More
Raphaels Bank has reduced the rate paid on its 60-month fixed bond by 0.15%; however, this hasn’t de... More
Bank of London and The Middle East has reduced the rate paid on its five-year fixed bond by 0.20%. H... More
Close Brothers Savings has launched a new three-year bond onto the market, snatching it a coveted pl... More
Milestone Savings has reduced the rates paid on its fixed rate bonds by as much as 0.35%, but despit... More
Vanquis Bank has reviewed its savings range and increased rates by up to 0.16%, giving a welcome boo... More
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.