Best savings accounts in the UK in 2023

6.2% fixed rates or 5.2%

The Bank of England held rates at 5.25% in September, after 14 rises on the bounce. Does that mean that rates are about to fall, and if so, is now the time to bag a savings deal? Here are the top rates on easy-access, fixed-term and regular accounts right now.

After over a decade of low rates, savers can more from their money. You could get more than this if you are willing to lock your cash up for longer.

Why are savings rates rising?

The Bank of England has been increasing the base rate of interest since December 2021 in an attempt to bring inflation down. Back then the rate was 0.1% but it is now 5.25%.

The base rate or ‘bank rate’ is what determines what we pay to banks for borrowing money, in the form or mortgages and personal loans, or what they give to us on our savings.

When the base rate rises, interest rates on savings accounts are supposed to follow. And they have, but not as fast as mortgage rates have been rising.

TYPES OF SAVINGS ACCOUNT

1. Best easy-access accounts

Best for: Savers with a lump sum in their bank account which you might need in a hurry.

Easy-access savings accounts are simple types of savings accounts that let you withdraw your money without notice.

However, the interest rates are often lower compared to notice accounts or fixed-rate accounts.

Below are five easy-access savings accounts with the highest rates:

Coventry Building Society @ 5.20%

Cynergy bank @ 5.15%

Virgin Money @5.12%

Nottingham Building society @5.10%

2. Best notice savings accounts

Best for: Savers who can plan ahead and don’t need easy access.

Notice savings accounts require you to wait for a set amount of time to access your money.

Below are the top three notice savings accounts:

Stafford Railway Building Society @ 5.75%

RCI bank @ 5.60%

Oxbury Bank @ 5.59%

Cynergy Bank @ 5.55%

3. Best fixed-rate savings accounts

Best for: Savers who want to be sure of the interest they will earn over the term but don’t need access to their cash.

Fixed-rate savings accounts are also known as fixed-rate bonds.

Below are the one-year fixed-rate bonds paying the highest interest to savers. Currently, you can’t earn more by locking your cash away for longer.

Below are the fixed-rate accounts with the highest interest rates:

National Savings & Investments @ 6.20%

Nottingham Building Society @ 6.10%

Raisin UK @ 6.10%

4. Best regular savings accounts

Best for: Those who don’t have a lump sum but who want to save money on a regular basis.

If you don’t have a lump sum to invest, you could be a regular saver instead by putting aside a set amount each month.

What is the best regular saving account?

Nationwide has launched a regular saver account paying 8% a year. You can put away up to £200 each month for a fixed 12 month term, giving you £2,400 after a year.

If you save the maximum each month, you will earn £103 in interest after a year.

You need to open a Nationwide current account to qualify for one.

While regular saver rates might sound good on paper, actually you could probably earn more interest over a year by opting for a top easy-access instead. This is because, unlike regular savings accounts, many easy-access accounts don’t have strict contribution limits so you can pay more into them.

Below are the best regular savings accounts.

Nationwide Building Society @ 8%

Lloyds Bank @6.25%

NatWest @6.17%

Saffron Building Society @ 5.75%

How to get the most interest on your savings

Even if savings rates do nudge up, they aren’t likely to get anywhere near beating inflation. But it is important to be vigilant with your savings.

Make sure you:

Shop around for the best savings rates

Move your money to a better rate when your current rate ends

Check whether your cash is protected by the Financial Services Compensation Scheme

Check that your provider is authorised and regulated by the Prudential Regulation Authority and that it is regulated by the Financial Conduct Authority

Think about the different savings accounts options available

Tip: Regular savings accounts usually offer the highest interest rates, but you are often restricted on the amount of cash you can put in each month.