Which UK savings accounts pay the highest interest rates?

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With the cost of living and inflation rising significantly, UK consumers are on the lookout for every little way to make their money go a little further. 

As a result, there may be a silver lining to be found within the monetary policy tightening adopted by the Bank of England, in the form of higher interest rates for UK savings accounts. 

This means that finding banks which offer the highest savings account interest rates has increasingly taken precedence. 

Regarding the type and number of banks available, UK consumers have several options. They can choose between global high street banks such as Barclays and HSBC, as well as challenger banks such as Monzo and Revolut, amongst several others.

So which UK savings accounts offer some of the highest interest rates?

High street banks

Nationwide

Nationwide’s Flex Regular Saver account can be a good option for existing Nationwide current account customers. It offers a 8% AER/gross rate per annum and can be opened online. However, after 4 withdrawals, the interest rate drops to 2.15% AER/gross per annum for the rest of the term. Both these rates are variable.

If you anticipate that you may need to make more than 4 withdrawals, the Nationwide Flex Instant Saver may be a better option, with a variable rate of 3.25% AER/gross per year for 12 months. This gives you unlimited access to your savings, so you can make as many withdrawals as you need and can be opened online. However, this is also only for existing current account holders.

For younger savers, aged 11-17, Nationwide also has the FlexOne saver account, a children’s savings account for existing customers. This gives you a variable rate of 5% AER/gross and unlimited withdrawals, and can be opened both online and in branch.

Lloyds

Lloyds, like Barclays, also has a premium membership for current account holders, called Club Lloyds. Members can access the Club Lloyds Monthly Saver account and receive a fixed 6.25% AER/gross rate, payable after a year. However, this account is only valid for one year, with a minimum deposit of £25 and up to £400 a month. This account can be opened instantly and following a year, the account will be converted to a Standard Saver account.

Lloyds also has a Monthly Saver account, with a fixed interest rate of 5.25% AER/gross, payable after a year and a £25 minimum deposit, up to £250 a month. This account is also valid for only a year, and can be opened instantly. After a year, the Monthly Saver also gets turned into a Standard Saver account.

For non-Club Lloyds clients, the bank offers an Easy Saver account, with a variable interest rate of 1.0% AER/gross on balances of £1 to £24,999. For balances from £25,000 to £99,999, the interest rate goes up to 1.45% AER/gross.

On balances of over £100,000, the interest rate is 1.90%. However, this account is also valid for 1 year, following which it gets transformed to a Standard Saver account. Clients can open up to 5 different Easy Saver accounts instantly.

Natwest

Natwest offers their instant access Digital Regular Saver account for existing current account customers, with a variable rate of 6.17% AER/ 6% gross per annum on balances of up to £5,000 a month. On balances of above £5,000 a month, it offers a 1.75% AER/1.74% gross rate per annum.

This account can be opened online and clients can save anywhere between £1 and £150 per month.

For non-existing customers, it also offers the Fixed Term Savings account, with an interest rate of 4.60% AER/ 4.51% gross per annum for a 1-year term on balances between £1 and £5,000,000. On 2-year terms, a rate of 4.30% AER/ 4.22% gross per annum is offered, on balances of between £1 and £5,000,000.

Barclays

Barclays has a variety of savings account types, suited for every type of consumer. Although there are basic accounts available, savers may be better off opting for the bank’s cashback rewards program, Barclays Blue Rewards. This gives them access to a range of other savings accounts with higher interest rates.

The Barclays Rainy Day Saver account is one for Blue Rewards members, paying 5.12% AER/5% gross on balances until £5000. Over £5000, it pays 1.16% AER/1.16% gross. Like the above ones, this can also be opened with only pound1 and can be topped up anytime.

If you’re not a Blue Rewards member, you still have options such as the 1 year flexible cash ISA account for a relatively higher interest rate.

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The 1 year flexible cash ISA account offers a rate of 4.75% tax-free per year. Savers can make up to 3 withdrawals, each one up to 10% of the current balance. The account can be opened with as little as £1, with top ups anytime. However, this rate is fixed for one year.

Santander

Santander offers the Regular Saver account for its existing current account customers, which offers a fixed interest rate of 5% AER/gross for the first 12 months. It also has an automatic rollover period, which means that the account will not be closed after the first year, but will continue to pay whatever interest rate is prevalent at the time.

Clients can save up to £200 a month, but need to fund the account with a standing order from their existing current accounts. If they save more than £200 in a month, or don’t use their current account to fund the account, the bank reserves the right to convert their account into an Everyday Saver account.

For clients who are not already current account holders, Santander offers the Limited Access Saver account with a variable 3% AER/2.96% gross interest rate in the months when 2 or fewer withdrawals are made. However, in the months when 3 or more withdrawals are made, an interest rate of 1.20% AER/ 1.19% gross is paid. The account is valid for 12 months.

For unlimited access, Santander also offers their Easy Access Saver account with a variable rate of 1.70% AER/gross for balances of £1 to £2 million. The account term is for 12 months, following which it gets converted to an Everyday Saver account.

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HSBC

HSBC offers its Fixed Rate Savings Account with a 5% AER/gross rate for 1 year and a 4.65% AER/gross rate for 2 years for existing current or savings account holders. Interest can be paid annually or monthly. Savers can put in a balance of anywhere between £2000 and £1 million.

However, Basic accounts, Loyalty Cash ISAs and Regular Saver account holders are not eligible.

For people who are not yet existing customers, HSBC offers an instant access Flexible Saver account, with a 2% AER/1.98% gross interest rate. It can be opened with as little as £1 with no maximum balance. The interest rate is variable and is paid monthly.

Challenger banks

Starling

Starling has a 1-year Fixed Saver account, for its existing current account customers, with an interest rate of 5%, with a minimum balance of £2,000 and a maximum balance of £1,000,000. Although the account does not offer top-ups once opened, clients can have multiple Fixed Saver accounts at once.

Revolut

Revolut’s savings account provides up to a 4.75% AER/gross interest rate, with interest paid daily, rather than monthly or yearly. It also offers clients the choice of three currencies, US dollars, euros or sterling pounds to open their account in. It also offers unlimited top-ups and withdrawals.

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Revolut memberships are divided into five tiers, standard, plus, premium, metal and ultra, with membership fees of £0 to up to £45.

Monzo

Monzo provides its Easy Access savings account or “savings pot” for its Plus and Premium subscribers, with a variable interest rate of 4.60% AER/ gross per annum. For the basic Monzo account, this interest rate is 4.10%. This account gives you instant access and has no minimum deposit, with interest being paid monthly.

This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page then you do so entirely at your own risk.