The best savings account is the one that pays the most on money you can leave for as long as the account needs, with a bank you’re protected with. Savings rates change often, so this page doesn’t list named accounts: it gives you the benchmark to judge any rate against, and the checks that separate a good account from one that only looks good.
The benchmark: average rates now
Each month the Bank of England publishes the average rates UK banks and building societies quote on savings accounts. These were the averages for August 2026:
| Account type | Average rate | Interest on £10,000 for a year |
|---|---|---|
| Instant access | 2.07% | £207 |
| 1-year fixed rate bond | 4.04% | £404 |
| 2-year fixed rate bond | 4.24% | £424 a year |
| 3-year fixed rate bond | 4.37% | £437 a year |
| Cash ISA (variable rate) | 2.01% | £201, tax-free |
| 1-year fixed rate cash ISA | 4.40% | £440, tax-free |
The instant access average is for a £1,000 balance and includes guaranteed bonuses. The best accounts pay well above these averages, and plenty of older accounts pay well below them, so the useful question for any account is how far it sits above or below the average for its type.
Pick the type first, then the rate
The rate you can get depends mostly on how long you can leave the money:
- Money you might need at any time (an emergency fund, for example) belongs in easy access. The rate is variable.
- Money you can leave for a known period can earn more in a fixed rate bond, as long as you’re sure you won’t need it before the term ends.
- Money you can give warning before taking out can go in a notice account.
- Money you’ll save each month can go in a regular saver, which often pays a high rate on a limited monthly amount.
Comparing a fixed rate with an easy access rate isn’t comparing like with like: the fixed rate is the price of giving up access.
What the headline rate leaves out
Before you open an account, check these in its key terms:
- Bonus rates. Part of the rate may be a bonus for a set period. The Bank of England’s average instant access rate was 2.07% including guaranteed bonuses and 1.90% without them in August 2026. Note when a bonus ends, and move if the rate then drops below the average.
- Withdrawal limits. Some “easy access” accounts allow only a few withdrawals a year, or cut the rate if you make more.
- Conditions. Some rates are only for customers who also hold the bank’s current account, or who manage the account in an app.
- Minimum and maximum balances. A rate may apply only up to a certain balance, or need a minimum deposit.
- AER. Compare accounts on their AER, which allows for how often interest is paid: see what AER means.
Check the protection
Only save with a bank, building society or credit union authorised by the Prudential Regulation Authority: then the FSCS protects your deposits up to £120,000 per person, per bank. You can check a firm on the Financial Services Register. Several brands can belong to the same bank and share one limit, which matters if you have more than £120,000 in total: see FSCS protection.
Be wary of any “savings” offer paying far above the averages from a firm you can’t find on the register: if the firm isn’t authorised, your money isn’t protected by the FSCS.
Tax on the interest
Each tax year a basic rate taxpayer can earn £1,000 of savings interest tax-free, a higher rate taxpayer £500 and an additional rate taxpayer nothing; your band is worked out with your interest added to your other income. If your interest is likely to go over your allowance, a cash ISA can pay more after tax even at a lower rate: the Personal Savings Allowance shows how to compare, and the savings interest tax calculator works out your figure.
Switching
There’s no central switching service for savings: you open the new account, then move the money from the old one. Cash ISAs are different: withdrawing the money instead of transferring it means you can’t pay that part of your allowance back in, so use an ISA transfer. Both are covered in how to switch savings accounts.
Related guides
- Savings accounts guide: the account types, average rates, tax and protection in one place
- Easy access savings: how they work, bonus rates and withdrawal limits
- Fixed rate bonds: rates by term, early access, and fixed against easy access
- Compound interest calculator: what your savings grow to