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Compare savings accounts

Compare savings accounts to find high interest rates with Runpath Regulated Services[1]

Why compare savings accounts?

It’s never been more important to compare rates to find the highest interest savings account you can. Instant access savings interest was just 0.06% on average in February 2021[2] – but by comparing accounts you can make your money work harder and earn higher interest rates than that.

How do I get higher interest on my savings?

Everyone wants the same thing from their savings: to get the highest interest rate they possibly can.

But there’s not a one-size fits all high interest savings account. You’ll need to find an account that fits with how much money you have to save, how often you add to your savings and when you want to withdraw them.

Savings rates are given as an annual equivalent rate (AER). When you compare savings you can choose to see them with the highest AER first, which will tell you the accounts with the highest interest.

But you can filter your results as well, so you’ll only see easy access accounts, for example, if you don’t want to lock your money away for a year or more.

How does interest work?

Interest is how much your bank will pay you for saving with them, given as a percentage.

Most savings accounts pay compound interest, which means that the interest your money earns will also earn interest. That lets your money grow faster.

Do you need a savings account?

There’s a savings account to suit every type of saver, no matter how little or how much you manage to put away each week or month.

Keeping your money in savings will mean it’s safe and potentially growing with the interest paid. But you need to make sure you put it in the right sort of account for how you want to save.

Before you open a savings account think about:

  1. Whether you need access to your money or if you can lock it away in a fixed-rate account
  2. Whether you have a lump sum to save, regular monthly payments, or both

You may not want to open a savings account if you:

  1. Have debts with a higher interest rate than you can get with savings – paying off debts first could save you more money in the long-run.
  2. You have substantial savings that would benefit from the tax-free treatment of an ISA account instead.
  3. Can get a better rate of interest on small amounts in a high interest current account.

Types of savings accounts

The main differences between savings accounts are how easy it is to withdraw money from the account and how much interest you'll earn.

There are a few core types of savings accounts:

Easy access accounts

If you're looking to get the most interest on your savings, but on a short-term basis, you'll probably want to look at easy access accounts. You can usually withdraw money any time, though sometimes there's a limit on how many withdrawals you can make in a year.

More about easy-access savings accounts >

Fixed-rate savings accounts

If you don't need easy access to your cash, or you're saving for something a little further down the line, then a fixed rate or notice account might work better for your money.

These generally have higher interest rates but will have limits on withdrawals. You might not be able to withdraw any money to start with. And if you do want to, you usually need to give notice - usually between 30 and 120 days.

Generally, you'll get better interest rates on accounts it's harder to take money out of - where there are limits on withdrawals, for example.

More about fixed-rate savings accounts >

Notice savings accounts

The rates are sometimes higher than easy access savings, but you need to tell the bank in advance when you want to withdraw from your savings. For example, you might need to give the bank 90 days’ notice before you can access your money.

More about notice accounts >

Regular savings accounts

Regular savings accounts can have some of the highest interest rates available. But you can only pay in a relatively small, regular monthly deposit and you can’t usually open them with a lump sum, or pay one in later.

More about regular savings accounts >

ISAs

Everyone has a personal savings allowance that lets them earn a certain amount of interest before they pay tax. But if your savings interest exceeds the personal allowance, an ISA is a tax-free ‘wrapper’ for your savings that gives you a higher tax-free allowance on savings interest.

More about ISAs >

Child savings accounts

Children can have their own savings accounts and junior ISAS give under 18s a £9,000 tax-free allowance on savings interest. Make sure you know how the child will have access to the funds in the future.

More about children’s savings accounts >

Sharia savings accounts

Sharia savings have an expected profit rate instead of a guaranteed interest rate. They’re run in compliance with Sharia law.

More about sharia banking >

What do you need to open a savings account?

  1. Your details

    You’ll need to be aged 16 or over and be a UK resident for tax purposes

  2. Proof of identity

    You may be asked for proof of ID, address and proof of bank account

  3. Select your account

    Choose from easy access, fixed-rate or more

  4. Your initial deposit

    Some accounts can be opened with as little as £1, while others ask for a larger opening deposit

  5. Your regular deposit

    Some savings accounts have minimum amounts you need to put into them each month

How much should I save?

It’s a good idea to get into the savings habit, but how much you can put away in a savings account, and how often, is your choice.

You could start by seeing how much you have left at the end of the month after expenses and bills and putting it in the highest interest easy access account you can find. That way you won’t be tempted to spend it, but you can withdraw it easily if you really need it.

If you have more to save or a lump-sum, you might be happy to lock it away in a fixed-term account to get a higher interest rate.

[1]Gocompare.com introduces customers to Runpath Regulated Services, which is authorised and regulated by the Financial Conduct Authority. Gocompare.com's relationship with Runpath Regulated Services is limited to that of a business partnership, no common ownership or control rights exist between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those site.

[2]Bank of England Monetary and Financial Statistical tables

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