Best savings accounts May 2022

Finding the best savings accounts can be a daunting task if you’re not sure what to look for, but we’ve done the hard work for you

lots of piggy banks
(Image credit: getty images)

With interest rates now at 1%, the highest level since 2009, you may be looking to switch your savings account to bag a better deal. It may take a few weeks for higher rates to appear on savings accounts after the Bank of England increased the base rate on 5 May 2022, but if you are looking to switch sooner, then we have listed the best options available right now.

While rates are still well below the current rate of inflation, savings accounts can still offer tangible benefits. With some providers offering as little as 0.01%, it’s worth comparing products to help you find the best deal for your cash savings. 

“For some, flexibility and quick access may mean that an easy access account would be their preferred type of account,” says Eleanor Williams from data analyst Moneyfacts. “However, locking your money away for a set period of time in order to secure a higher rate of return may be preferable, while others may prefer to spread their funds across different types of accounts.” 

Savers searching for top rates may wish to consider some less familiar brands such as challenger banks, as these are currently paying many of the top returns on short-term savings deals. 

It’s also wise to keep a close eye on our top picks which we will regularly update, as some attractive rates don’t have very long shelf lives, so you may need to move swiftly to secure your preferred choice.

Remember, choose a type of account that will suit your needs best. Here are our top picks on where's best to put your cash.

All the banks we have mentioned below are covered by the Financial Services Compensation Scheme, meaning if your bank goes bust, then up to £85,000 of your savings are protected.

The best easy access savings accounts

If you need to be able to withdraw your savings whenever you want then an easy-access account is suitable for you. You pay money into them, you receive (usually low) interest while money is in the account and can take it out whenever you need it. Interest rates are lowest on this type of account as you are essentially paying for the privelege of easy access. Rates are variable, however, so you can check to see if you are getting the best return possible.

Chase Bank

Chase Bank | 1.5% | Minimum deposit £1, maximum deposit of £250,000

The easy access account is linked to a current account so you’ll have to open a current account to get this rate. There is no minimum income requirement so it’s theoretically straightforward to open the current account in order to then open the savings account. You’ll have to open and manage this savings account via the banking app. There’s no restrictions on withdrawals so you can access your savings instantly if you have an emergency, or as many times as you like if you are using savings to pay for different things. The 1.5% interest means you earn £15 on a £1,000 deposit.

Gatehouse Bank

Gatehouse Bank | 1.3% | Minimum deposit £1,000, maximum deposit of £250,000

You’ll have to open and manage this savings account online. There’s no restrictions on withdrawals, meaning you can access your savings instantly should you need to. The 1.1% interest means you earn £13 on a £1,000 deposit. 


Aldermore Bank

Aldermore Bank | 1.2% (variable) | Minimum deposit £1, maximum deposit of £1,000,000 

You’ll have to open and manage this savings account online. The interest rate depends on how many times you take money out in any anniversary year. The higher interest rate of 1.2% will apply if you make two or less withdrawals in a year. Three or more withdrawals will result in the lower interest rate of 0.10% becoming applicable. The 1.2% interest means you earn £12 on a £1,000 deposit.  

Notice Accounts

If you're happy to give the bank some notice before you take your savings out, then a notice account could bag you a slightly higher interest rate than the easy access accounts. These accounts are suitable if you have at least £1,000 - £5,000 to deposit.

PCF

PCF Bank 180 days | 1.63% | Minimum deposit £1,000, maximum deposit of £85,000

If you’re fairly certain you can wait almost 6 months to access your savings, then this notice account offers a better interest rate than the top easy-access accounts. You open this account online, but it can be managed online, by post or over the phone. The interest rate is variable and is paid annually so a deposit of £1,000 would give you an estimated balance of £1,063 in one year.  


Oxbury

Oxbury Bank 120 days | 1.58% | Minimum deposit £1,000 maximum deposit of £500,000

You’ll have to open this savings account online, but it can be managed through an app.. You’ll need to allow 120 days for withdrawals. The interest rate is variable so can go up and down. The 1.58% interest means you earn £15.80 on a £1,000 deposit after one year. 

OakNorth

OakNorth 90 Days | 1.52% | Minimum deposit £1, maximum deposit of £500,000

You’ll have to open and manage this savings account online or via the banking app. You’ll need to allow 90 days for withdrawals. The interest rate is variable so it can go up and down. The 1.52% interest means you earn £15.20 on a £1,000 deposit after one year.  

Fixed 1-year accounts

Shawbrook Bank

 Shawbrook Bank | 2.15% | Minimum deposit £1,000, maximum deposit of £2,000,000

You’ll have to open and manage this savings account online. The 1.96% interest means you earn £19.60 on a £1,000 deposit. You will need to give 180 days' notice if you want to make a withdrawal. 

Jordan

 Jordan International Bank | 2.15% | Minimum deposit £10,000, maximum deposit of £85,000 

You’ll have to open and manage this savings account online. The 2.15% interest means you earn £21.50 on a £1,000 deposit. The offering from Shawbrook just pips Jordan International Bank to the number one spot as it has lower minimum and higher maximum deposit amounts. 

Oxbury Bank

Oxbury Bank | 2.13% | Minimum deposit £1,000, maximum deposit of £500,000 

This account can be opened online and managed online or through an app. Interest is calculated daily and paid annually. The 2.13% interest rate means you ear £21.30 on a £1,000 deposit. You cannot make withdrawals before the end of the fixed term. 

2-year fixed savings accounts

Some of the better rates on offer are available if you have a slightly longer term savings goal and are willing to go into a two-year fixed rate period. But just remember, you won't benefit from any interest rate increases, if there are any, during this period.  

Jordan International Bank

Jordan International Bank | 2.50% | Minimum deposit £10,000 maximum deposit of £85,000 

This account uses the Flagstone platform. You’ll have to open and manage this savings account online. Interest is paid on maturity. The 2.50% interest means you earn £512.16 on a £10,000 deposit after two years.

Shawbrook Bank

Shawbrook Bank | 2.50% | Minimum deposit £1,000, maximum deposit of £2,000,000 

You’ll have to open this account online, but it can be managed online or over the phone. The 2.50% interest means you earn £51 on a £1,000 deposit over the duration of the account. You cannot make withdrawals from the is account before the two-year period ends. 


PCF Bank

PCF Bank | 2.45% | Minimum deposit £1,000, maximum deposit of £85,000 

You’ll have to open and manage this savings account online. The 2.22% interest means you earn £49 on a £1,000 deposit after two years. No withdrawals or additional deposits are allowed. 


This list is accurate at time of writing, with guidance from data analyst Moneyfacts.

Katie is staff writer at The Money Edit. She was the former staff writer at The Times and The Sunday Times. Her experience includes writing about personal finance, culture, travel and interviews celebrities.  Her investigative work on financial abuse resulted in a number of mortgage prisoners being set free - and a nomination for the Best Personal Finance Story of the Year in the Headlinemoney awards 2021.

With contributions from