Compare savings accounts

Compare savings accounts to find high interest rates[1]

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Why compare savings accounts?

When it comes to savings accounts, it’s all about the interest rate. You want to be getting the most for your money and watching it grow, rather than having it sit there doing nothing for years on end.

Interest rates are starting to rise again after a tumultuous few years, so it’s the perfect time to take advantage.

Whether you want to be able to access your money easily or are keen to lock it away and forget about it for a few years, shop around and see how different savings accounts stack up against each other.

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Types of savings accounts

Choose from the following options to find the right fit for your finances:

Easy-access savings accounts

If you want flexibility, this could be the right choice for you. You can deposit and withdraw money easily, which makes them a good option for building up an emergency fund.

If you’re looking for the top interest rates on offer, you’re unlikely to find them with this type of savings account.

Notice savings accounts

Similar to a fixed-rate savings account, you won’t be able to access your money as and when you please.

You’ll need to notify the bank or building society a set period of time before you wish to withdraw. This could be between 30 and 120 days.

ISAs

An ISA allows you to save up to £20,000 per year (6 April – 6 April) without paying any tax.

You can choose between cash ISAs and stocks and shares ISAs, but you can only open and pay into one account each year.

Fixed-rate savings accounts

A fixed-rate savings account will place restrictions on when you can withdraw your money.

This means you’ll only be able to access your cash after a certain amount of time, which could be up to five years. You’ll be charged for taking your money out early.

Generally, these types of savings accounts will offer better interest rates than easy-access options and the longer the fixed-rate period, the higher the interest rate.

Regular savings accounts

If you want to save a small amount on a regular basis, this type of account could be just the ticket.

There’ll be restrictions on how much you can deposit each month, but the interest rates are some of the highest on offer.

Child savings accounts

It’s possible to open a savings account for your child. You may even want to consider a Junior stocks and shares or cash ISA.

Sharia savings accounts

These are savings accounts that comply with Sharia law. They do not charge or pay interest as Islamic law forbids people from making a profit by exchanging money.

How to choose the best savings account for me

Of course you want to choose the savings account with the highest interest rate, but you’ll also want to take into account access to your funds and how long you’re looking to save for.

If you’re happy to shut away your money and have no intention of dipping into it for the foreseeable, a fixed-rate or notice savings account may be an option to consider.

However, for those that need the flexibility of being able to withdraw as and when they need to, an easy-access savings account could be the right choice.

How do I get higher interest on my savings?

To access the higher interest rates on offer, you may want to consider a savings account that locks your money away. More restrictive accounts, like fixed-rate and notice period options, tend to offer the best interest rates and five-year fixed-rate savings accounts will have a better interest rate than shorter fixed-rate period accounts.

Use our comparison service which will show you the highest interest rates available for each type of savings account. You can view the annual equivalent rate (AER) to see the rate of interest over a year.

It’s worth remembering that any interest you earn above your personal savings allowance will be subject to tax. You’ll have to be saving a large amount for this to be a problem though.

For basic-rate taxpayers, this means you can earn up to £1,000 in interest on your savings per year without paying interest, and it’s up to £500 per year for higher-rate taxpayers.

Alternatively, you might want to look at high-interest current accounts, some of which could offer a linked savings account option with a competitive interest rate, too. Watch out for the interest rate lowering after the introductory period ends, you may want to switch when this happens.

What is the best savings interest rate?

On 27 July 2022, the best savings rate available through Go.Compare for an easy-access savings account is from Nationwide at 1.5% and Aldermore offers a five-year fixed-rate savings account with an interest rate of 3.25%.

How many savings accounts can I have?

There’s no limit on the amount of savings accounts you can have, which can be helpful if you want to have a mix of easy-access and fixed-rate options.

It’s also possible to have multiple ISAs, but you’re only able to open and pay into one type of ISA per tax year.

What do you need to open a savings account?

  1. Your details

    You’ll need to fulfil the eligibility criteria and will need to provide details such as your age and address

  2. Proof of identity

    Your driving licence or passport may be required, as well as proof of your address and bank account

  3. Choose your account

    Decide which type of savings account you want to open based on your financial needs

  4. Your initial deposit

    You may be required to deposit a certain amount to open the savings account

  5. Your regular deposit

    Some accounts require you to pay in at least a minimum amount each month (some also have maximum amounts)

How much should I save?

It’s recommended that you save around 20% of your income each month, as long as you’re able to do so without putting yourself under financial strain. You might want to think about setting up a direct debit from your current account to your savings, so you won’t be tempted to spend it.

If this isn’t realistic, just think about putting aside as much as you can comfortably afford from month to month.

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