Savings account comparison
Whatever your savings goals, we can help you find the right account. Stress less and save more.
A savings account is an account maintained by the bank, which pays interest. Picking the right savings account is important, as it can hugely affect how fast savings grow.Read on to find out more and make the choices that get your money working as hard as possible.
Search and compare savings accounts below
What’s the best savings account?
Generally, there’s no single, one-size-fits-all “best” savings account. A savings account is made up of several attributes, including interest rate, fees, access and rewards. Essentially, what this means is that the account that may be best for you may not be best for someone else. To find the best savings account for you, compare the range of accounts on offer using our table above.
What types of savings accounts are there?
Short for ‘Individual Savings Account‘, an ISA works in much the same way as an ordinary savings account. Other accounts may incur income tax on any interest earned, but this isn’t the case with an ISA. The trade-off for this is a limit on how much to can pay into an ISA account each tax year – £20,000.
Easy-access savings accounts
As the name suggests, these accounts offer unrestricted access to your cash. You might see these accounts referred to as a ‘instant access‘ or ‘no-notice‘ account. In return for this greater flexibility, you’ll often get lower returns than are with other accounts.
With a notice-savings account, you’ll have to notify the account provider before you make a withdrawal. This is good for those who can afford to wait, paying better rates on the whole than easy-access accounts. It’s worth being aware of how much you’ll pay in penalty fees if you withdraw without notifying the provider though!
Regular savings accounts
These are good options for those looking to drip feed money into a savings account every month, and keep it out of sight. They generally offer competitive interest rates, but the trade-off here is that you’ll have to stick to the agreed maximum and minimum deposits each month. Failing to pay in on a given month can lead to penalty charges.
Fixed rate bonds last for a set period of time. Over this period, the interest rate will stay the same regardless of any external factors, such as the Bank of England changing the base rate.
Help to Save accounts
These accounts will be introduced in 2018, offering lower paid workers a government bonus of up to £1,200. The scheme will see those eligible able to save up to £50 a month and receive a bonus of 50% – a maximum of £600 – after two years. Savers can continue to use the scheme for a further two years and earn up to another £600.
How do I compare savings accounts?
- Look for high or competitive interest rates. Your interest rate is your return and reward for keeping your money in the bank. Getting the highest interest rate will mean your money will work harder for you.
- You want low fees. Most banks nowadays don’t charge a monthly fee for maintaining a savings account. If you’re currently paying a monthly fee, then you need to assess whether the savings account is worth the free.
- You might want easy access to your money. The level of accessibility to look for depends on your preferences and personal savings goals. While many savings account allow you almost instant access, some require that you plan ahead for when you are going to want to access your money.You should be rewarded for constantly saving
- You should be rewarded for constantly saving. If you find that your savings account balance is building up, but you’re still getting a less-than-average rate; then it could be time to switch.
Why should I compare savings accounts?
There is such a broad range of savings accounts to choose from, which is tricky given that choosing the right account can be vital for your finances. A good interest rate is among the most important attributes of a savings account, and is rightly often the first thing you should look for. Don’t forget, though, that there are loads of features in addition to interest rate that can be the deciding factor when choosing a savings account.
It’s for this reason that comparing savings accounts is such a necessary and wise thing to do. To start, return to our table above.
What are Introductory Bonus Rates?
Something to look out for when browsing savings accounts is high interest rates for new customers, often referred to as “introductory bonus rates”. While this is definitely an alluring feature, remember that when the introductory period is up you’re likely to be left with a significantly lower interest rate. Because of this, it may be a good idea to keep your account open while you qualify for the introductory rate, before switching to an account with a better rate once the introductory period is finished.
If you decide to go with an account offering an introductory bonus rate, make sure you’re clear on the terms so you don’t end up losing the rate. For example, if you withdraw money before the end of the introductory period the introductory rate may be withdrawn.
Are savings taxed?
A taxpayer that pays the basic rate of income tax can earn up to a maximum of £1,000 from interest payments on a savings account without paying tax, while a higher rate taxpayer can earn up to £500 before paying tax. This is what’s known as the Personal Savings Allowance.
The Personal Savings Allowance is in addition to money earned from an ISA account, which are all tax-free.
What is the FSCS?
Short for Financial Services Compensation Scheme, the FSCS protects customers when financial services fail. Look out for their logo on the financial products you’re comparing.
Since 2001, the FSCS has helped millions of UK customers, paying out billions of pounds. If a firm has stopped trading or does not have enough assets to pay up, the FSCS will step in to protect customers.Back to top
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