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Compare savings accounts

Make your money work harder for you

Make your money work harder for you

Make your money work harder for you

Make your money work harder for you

Make your money work harder for you

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Savings accounts are not a qualifying product; however, compare savings accounts now and find the right one for you.

Savings accounts

Times are hard for savers – currently a quarter of British adults have no savings at all. So, if you manage to put money aside, you’ll want to make the most of it by putting it in the right savings account. Here’s our guide on how to avoid pitfalls and compare savings account rates.

Frequently asked questions

Why compare savings accounts?

When choosing a savings account, you want to get a good interest rate – along with the features you need to manage your finances. With so many providers out there, you have a lot of options to choose from.

At Compare the Market, we make it easy to compare the top savings account rates by gathering information from dozens of accounts in one place. You can see the rates available and also key information at a glance – including pros and cons, maximum and minimum balance, and the ways you can manage your account.

What should you consider when you compare savings accounts?

  • Interest rate – for the most part, people want to earn as much interest as possible on savings. But this often has to be balanced with access to your money. For example, instant access usually means a lower interest, while fixed-term savings offer more.
  • Access – some accounts give you instant access to your money whenever you need it, while others charge you a penalty if you withdraw money or not give you access at all before the set end date.
  • Tax – there are various accounts that help you earn tax-free interest on your savings (ISAs) – but remember, your personal savings allowance means you won’t pay tax on the first £500 to £1,000 of interest earned anyway, depending on your tax band.
  • Minimum and maximum deposit – some accounts can be opened with just £1, while others may need you to deposit much larger sums. Some savings accounts will also have a maximum balance too. A number of accounts offer tiered rates of interest, so the amount of money you have can affect your rate of interest.
  • Protection – make sure your savings are protected by the Financial Services Compensation Scheme (FSCS) so you know you'll get your money back if the organisation fails. There's a limit of £85,000 per banking group. If you have more than £85,000 in savings and deposits, you should spread it around. Some international banks may be protected by their own country's scheme. You can check to see if your money will be protected by the FSCS.

Don't forget, if you've only got a small amount to save, some current accounts will pay higher rates of interest on balances up to a certain level – so may be worth considering. But you'll need to be disciplined and make sure you don't spend the cash that is sitting in your account. It might be worth switching anyway and opening a savings account too. 

What are Introductory Bonus Rates?

You might see some savings accounts offering high interest rates as incentives for new customers – but once the introductory period is up, you can be left with an interest rate that’s much lower. It could be a good idea to stick around for the introductory rate, and then compare and switch again.

Always check the terms of the introductory rate, as certain things can mean you lose it - for example, if you withdraw money before the end of the introductory period.

What types of savings account are there?

The information below doesn’t cover all the options, but it should give you an idea of the main types of savings accounts out there.

Instant access savings account

  • Pay in or take out money whenever you want.
  • Interest rates are usually lower.
  • Good for when you need cash savings in an emergency and short-term savings.
  • Instant access.
  • Interest taxed after personal savings allowance. 

Fixed rate savings account

  • Leave your money for a fixed term (usually 1-5 years).
  • If you want to access the money early you will usually pay a penalty; early access not possible for some accounts.
  • Interest rates are usually higher than for instant access accounts.
  • Good for medium-term savings.
  • Access at the end of the fixed term.
  • Interest taxed after personal savings allowance.

Regular savings account (You currently can't compare these with us)

  • Save a set amount each month.
  • Interest rates are usually higher than for instant access accounts.
  • Typically, interest depends on you keeping up regular payments.
  • Good for building up a savings pot.
  • Access varies.
  • Interest taxed after personal savings allowance.

Cash ISA

  • You can pay in up to your ISA limit per year (£20,000 for the 2018-2019 tax year).
  • There’s no tax to pay on any interest earned.
  • Can be instant access or fixed term.
  • Good for tax free savings.
  • Access varies.

Junior ISA (You currently can't compare these with us)

  • You can pay in up to the child’s ISA limit per year (£4,260 for the 2018-2019 tax year).
  • There’s no tax to pay on any interest earned.
  • The money belongs to the child.
  • They can only access the money when they turn 18.
  • Good for saving for your child’s future.

Lifetime ISA (You currently can't compare these with us)

  • Available if you’re 18-39.
  • Pay in up to £4,000 per year until the age of 50. The Government will add an extra 25%.
  • There’s no tax to pay on any interest earned.
  • If you withdraw money early you pay a 25% penalty.
  • Good for saving for later life, retirement or your first home.
  • Access at age 60, when you buy your first home or if you’re terminally ill.

What do you need to open a savings account?

Once you’re ready to apply for an account, you’ll need to have the basics to hand – your address, occupation and current bank details. You may need to prove your ID, particularly if you haven't banked with that provider before. If you want to open an ISA, you’ll need your National Insurance number. Some savings accounts require a minimum deposit to open.

Ready to compare savings accounts?

Start comparing now to find a savings account that gives you the interest you want and the features you need. 

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