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How to find the best savings account

We round up the best savings rates on the market and explain how to pick the right account for you. 

In this article
The best savings accounts to beat inflation Top savings account deals The best and worst savings providers for customer satisfaction Which? Recommended savings providers
Choose the right type of savings account

The best savings accounts to beat inflation

With inflation at 2.7% in August 2018, it's hard for savers to find an account that pays enough to protect their money from losing value in real terms.

Of the 750 savings accounts on the market that are without eligibility restrictions, only a handful can beat or match inflation. 

Here we round up the best accounts currently available.

The Which? Money Compare savings and Isa tables let you search hundreds of savings accounts from providers large and small to find a great account based on quality of service as well as cost and benefits.

Regular savings accounts

The best regular savings accounts pay rates that are high enough to outstrip inflation, but to access them, you'll need to have a current account with the same provider.

First Direct, HSBC, M&S Bank, Nationwide and Santander all have regular savings accounts that pay a market-leading 5% AER for 12 months, but only existing current account customers are eligible.

Bear in mind that unlike fixed-rate bonds or instant-access accounts, which allow you to deposit a lump sum, you'll be much more restricted on the amounts you can pay in to a regular savings account - maximum monthly deposits are typically around £250. What's more, the rates are only payable for a limited time - typically 12 months.

Current accounts

Despite a series of rate cuts on popular interest-paying current accounts, many still offer meaningful returns, albeit only on small balances. You'll also need to make sure you pay in the required minimum monthly amount to qualify for interest.

Nationwide's FlexDirect account pays 5% AER on balances up to £2,500 for the first 12 months, generating a maximum return of £125. The rate will drop to 1% AER after that. 

TSB recently increased its Plus account interest rate on credit balance from 3% AER to 5% AER on balances up to £1,500, generating a maximum return of £75.

Tesco Bank pays 3% AER on balances up to £3,000 and has guaranteed this rate won't change until 1 April 2019.

 

 

Top savings account deals

Instant-access savings accounts (unlimited withdrawals)

Excluding accounts with limited withdrawals or other restrictions, the best instant-access savings rate in our table is 1.37% AER, offered by Kent Reliance

Bank of Cyprus UK offers the next best rate in our table,, paying 1.36% AER. .It's worth noting the rate on this account will revert to 1% AER after the first year, so you may need to switch to a more competitive account thereafter.

One-year fixed-rate savings accounts 

If you’re willing to tie up your savings for a year, the best rate in our table is 2.02% AER, offered by ICICI Bank UK.

My Community Bank pays a slightly higher rate at 2.1% AER but may not be available across the whole of the UK. 

Two-year fixed-rate savings accounts 

Bank of Clients and Tandem Bank offer the best two-year fixed-rate savings accounts in our table, both paying 2.25% AER.

My Community Bank pays the same rate at 2.25% AER but may not be available across the whole of the UK. 

Otherwise, Axis Bank and Charter Savings Bank pay 2.24% AER on minimum deposits of £1,000. 

Three-year fixed-rate savings accounts 

Charter Savings Bank offers the best rate in our three-year fixed-rate savings account table, paying 2.41% AER. 

Tandem Bank offers the next best rate in our table, at 2.4% AER. 

My Community Bank pays the same rate at 2.4% AER but may not be available across the whole of the UK. 

Four-year fixed-rate savings accounts

Masthaven and Vanquis Bank offer the best rates in our four-year fixed-rate savings account table, both at 2.52% AER. 

PCF Bank offers the next best rate in our table, paying 2.4% AER. 

Five-year fixed-rate savings accounts 

Charter Savings Bank,offers the best rate in our five-year fixed-rate savings account table, at 2.7% AER. 

Masthaven Bank offers the next best rate in our table, at 2.69% AER. 

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms & conditions of the savings account provider before committing to any financial products.

The best and worst savings providers for customer satisfaction

We know that customer service is an important factor for many consumers when choosing a savings account. That's why the Which? Money Compare comparison tables include our unique customer satisfaction ratings alongside each account.

Customer scores are based on a survey of an online panel of respondents from the general public who were invited to take part in the savings accounts customer satisfaction survey during January 2018. The final sample size was 6,399.

Overall customer scores are worked out using a combination of overall satisfaction and how likely the respondents are to recommend their savings provider to a friend. Companies need at least 30 responses to be given a rating.

Customer satisfaction for savings accounts
Provider Customer service Rates of interest Regular communication Transparency of charges/penalties Product Score Customer Score
RCI Bank UKWhich? Recommended Provider badge n/a 68% 77%
First Direct 60% 74%
AA 48% 72%
Coventry BSWhich? Recommended Provider badge 85% 70%
Kent Reliance n/a 78% 68%
Nationwide BS 75% 68%
Principality BS 70% 68%
Al Rayan Bank 65% 66%
Chelsea BS 80% 69%
TSB 73% 65%
Charter Savings Bank n/a 58% 64%
Yorkshire BS 83% 64%
Aldermore n/a n/a 63% 63%
Skipton BS n/a 83% 63%
United Bank UK 40% 63%
Atom Bank n/a 62%
M&S Bank 70% 62%
Bank of Scotland 78% 61%
Paragon Bank n/a n/a n/a 65% 61%
Metro Bank 73% 60%
Yorkshire Bank 83% 60%
Co-operative Bank 78% 59%
Newcastle BS n/a 73% 58%
Santander 78% 58%
Danske Bank 73% 57%
Leeds BS n/a 68% 57%
Lloyds Bank 78% 57%
Tesco Bank 88% 57%
ICICI Bank UK 68% 56%
Virgin Money 83% 56%
Halifax 78% 55%
National Savings and Investments (NS&I) 58% 55%
Axis Bank n/a n/a n/a 54%
Barclays 88% 54%
Clydesdale Bank 83% 54%
HSBC 73% 54%
Sainsbury's Bank 58% 54%
West Brom BS n/a n/a 65% 54%
NatWest 88% 53%
Post Office Money 70% 51%
Royal Bank of Scotland 88% 50%
Saga n/a n/a 65% 48%
Britannia 55% 44%
Average Score n/a n/a n/a n/a 67% 59%

Table notes:
¹Britannia branded products are part of the Co-operative Bank's range of products

n/a = sample size too small
AA (71), Al Rayan (34), Aldermore (39), Atom Bank (39), Axis Bank (33), Bank of Scotland (196), Barclays (397), Britannia (39), Charter Savings Bank (40), Chelsea BS (40), Clydesdale Bank (40), Co-op Bank  (202), Coventry BS (201), Danske Bank (38), First Direct (200), Halifax (400), HSBC (399), ICICI Bank UK (35), Kent Reliance (41), Leeds BS (43), Lloyds Bank (400), M&S Bank (49), Metro Bank (38), NS&I (199), Nationwide BS (410), NatWest (400), Newcastle BS (40), Paragan Bank (38), Post Office Money (184), Principality BS (41), RCI Bank UK (43), RBS (202), Saga (35), Sainsbury's Bank (75), Santander (405), Skipton BS (41), Tesco Bank (198), TSB (199), United Bank UK (32), Virgin Money (199), West Brom BS (35), Yorkshire Bank (75), Yorkshire BS (200).
Sample sizes: Total sample size: 6,399.

Product Score

We’ve also looked at the main elements of an instant-access savings account and have introduced a scoring system as a way of comparing each account on an equal basis. For a provider to be eligible for WRP status, it must achieve an average or above score for its instant-access savings account (currently 67%).

Despite First Direct and The AA scoring above the required 70% for customer satisfaction, they are not eligible for WRP status as their product score is below average (currently 67%). First Direct's savings products are also tied to the purchase of its 1st Current Account.

Which? Recommended savings providers

You can also see the scores, and Which? Recommended savings Providers below. 

Which? Recommended Providers are companies that are both rated highly by the respondents of our unique customer survey and have products that meet the high standards of our researchers.

To feature as a Recommended Provider, a company must have achieved a top score (at least 70%) in our latest customer satisfaction survey.

  • Providers main instant-access account must achieve an above average product score (currently 67%).
  • Providers must have a savings account which sits in the top ten in at least one category and another account sitting within the top half of  at least one category.
  • Providers must be fully covered by the UK Financial Services Compensation Scheme (FSCS).
  • Which? Recommended Providers of savings accounts must offer products which are available nationally and are not tied to the purchase of another product with the same provider.
Provider Which? verdict Customer
score
RCI Bank UK RCI Bank's Freedom Savings account has maintained best rate status in our instant access tables, since 2012.

Which? Recommended Provider badge

77%

Coventry BS Offers competitive rates on its ordinary instant access savings account and instant access cash Isa

Which? Recommended Provider badge

70%

Average score of all savings account providers rated by Which? Money 59%

Choose the right type of savings account