After years of near-zero returns, UK savers are earning meaningful interest. But with the Bank of England cutting rates, the window for the highest rates may be narrowing.
Easy Access Accounts
Best easy access rates: 4.8-5.1% AER. The best rates come from challenger banks and building societies, not high street banks.
The gap between best and worst easy access rates exceeds 3 percentage points. On 10,000 pounds this means a difference of around 300 pounds per year.
Fixed Rate Bonds
One-year fixed bonds: up to 5.0% AER. Two-year rates slightly lower reflecting expected rate falls. For savers who do not need access, fixing provides certainty against further base rate cuts.
Regular Savers
Rates of 5-8% available from banks for existing current account holders. Apply only to limited monthly contributions (typically 200-500 pounds) and often just in the first year.
Protection
Savings with UK-authorised institutions are protected under the FSCS up to 85,000 pounds per person per institution (170,000 for joint accounts).
