The best savings accounts are paying out some of the highest rates of interest in almost a decade. Now is a good time to review where you could be getting better returns for your money.
While interest rates on these accounts are still well below the current rate of inflation, savings accounts are seeing their highest interest rates since December 2012 according to MoneyFacts (opens in new tab), which means you’re getting more of a return on savings.
Just over a year ago in September 2021, an average easy access saver was offering 0.17%. Now, the average rate on an easy access saver stands at 0.84%.And it’s possible to find much better savings returns than that.
Rachel Springall, finance expert at Moneyfacts said: "The back-to-back base rate rises have had a positive influence on variable savings rates, and this, along with notable competition, has seen the average easy access rate rise to its highest level since 2012.
“Product choice across the savings spectrum also improved, getting closer to levels not seen since March 2020,” she adds.
MoneyFacts saw the highest level of saving accounts being offered to customers since March 2020, with 1,754 saving deals to choose from.
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.
Even if you’re happy with where your money is and the rate you’re receiving, always keep an eye out on our top picks which are regularly updated as some of the best rates don’t hang around for long.
So, if you’re not on a fixed term account, it may be good to move accounts more often to keep the best rates.
All the banks we have mentioned below are covered by the Financial Services Compensation Scheme (opens in new tab), meaning if the bank goes bust, then up to £85,000 of your savings are protected.
The best easy access savings accounts
Easy access accounts do what they say on the tin - they allow you easy access. It means you can withdraw your savings at any point without the need to give notice or miss out on interest. Easy access accounts do however have lower rates of interest.
If you think you will need easy access to your savings, then here are the top accounts available right now.
The best 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.
THE BEST ONE YEAR FIXED ACCOUNTS
The best two 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.
How to choose the best savings account
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.
Note that even if you’re happy with where your money is and the rate you’re receiving, always keep an eye out on our top picks which are regularly updated as some of the best rates don’t hang around for long.
So, if you’re not on a fixed term account, it may be good to move accounts more often to keep the best rates.
Rachel Springall, finance expert at Moneyfacts said: The back-to-back base rate rises have had a positive influence on variable savings rates, and this, along with notable competition, has seen the average easy access rate rise to its highest level since 2012.
“Product choice across the savings spectrum also improved, getting closer to levels not seen since March 2020,” she adds.
MoneyFacts saw the highest level of saving accounts being offered to customers since March 2020, with 1,754 saving deals to choose from.
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