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Find out which banks and building societies offer the highest rates for the
lowest deposits
As the cost of living crisis squeezes finances, savers are putting away less than half of what they were before the pandemic.
The combined net flow of money deposited into banks and building societies, as well as NS&I accounts, has nosedived. In June 2022, £1.9bn was deposited into these accounts – well below the average of £4.7bn paid in during the 12-month pre-pandemic period up to February 2020. That's according to recent figures in the Bank of England's Money and Credit report.
With this in mind, thousands of savers may be priced out of the many savings accounts that require minimum deposits of £1,000 or more – but there are lots of accounts out there that let you start saving from just £1. And while none of them can beat current rates of inflation, you can still find competitive deals.
Here, Which? reveals the providers offering the best rates for savings accounts that you can open with just £1 or, in some cases, nothing at all – giving you the option to put a little bit away whenever you can.
Best savings rates for small deposits
We've found the best rates available across several types of savings accounts and cash Isas, all of which can be opened with £1 or less.
Instant-access savings accounts
The advantage of instant-access accounts is that they offer lots of flexibility, and most let you make withdrawals without any notice or penalties – but the rates can change at any time.
These are the top five rates available for accounts requiring a deposit of £1 or less:
| Account | AER | Terms |
|---|---|---|
| Zopa Smart Saver | 1.81% | £0 minimum initial deposit. |
| Virgin Money M Plus Saver/ Club M Saver/ M Saver | 1.71% | £0 minimum initial deposit. Must have a Virgin Money M Plus/ Club M/ M current account to open. |
| Tandem Bank Instant Access Saver | 1.65% | £0 minimum initial deposit. |
| Cynergy Bank Online Easy Access Account | 1.6% | £1 minimum initial deposit. |
| Ford Money Flexible Savers | 1.55% | £1 minimum initial deposit. |
Source: Moneyfacts. Correct as of 11 August 2022, but rates are subject to change.
The accounts listed here are also market-leading rates, so those with smaller deposits don't have to miss out on interest.
Note that you'll need to hold a current account with Virgin Money before you can open its linked savings account. M Plus and Club M current accounts also pay 2.02% AER on balances up to £1,000, but the Club M account has a monthly fee of £14.50.
Fixed-term savings accounts
If you are happy to lock your money away for a while, then fixed-term accounts offer higher interest rates than instant access. If you need to withdraw money in an emergency, however, you might face an interest penalty.
The table below shows the top-rate restriction-free fixed-term accounts by order of term.
| Account type | Account | AER | Terms |
|---|---|---|---|
| Five-year fixed term savings account | OakNorth Bank Fixed Term Savings Account (60 Month Bond) | 3.39% | £1 minimum initial deposit. |
| Four-year fixed term savings account | OakNorth Bank Fixed Term Savings Account (48 Month Bond) | 3.37% | £1 minimum initial deposit. |
| Three-year fixed term savings account | OakNorth Bank Fixed Term Savings Account (36 Month Bond) | 3.35% | £1 minimum initial deposit. |
| Two-year fixed term savings account | OakNorth Bank Fixed Term Savings Account (24 Month Bond) | 3.31% | £1 minimum initial deposit. |
| One-year fixed term savings account | OakNorth Bank Fixed Term Savings Account (12 Month Bond) | 2.96% | £1 minimum initial deposit. |
Source: Moneyfacts. Correct as of 11 August 2022, but rates are subject to change.
As you can see, OakNorth has the most competitive rate across the board for £1 deposits – there are many other providers to choose from, but they don't currently pay as much interest.
Some of the OakNorth accounts are market-leading, while others are still competitive, which is good news for those who can't afford to lock away thousands. As a comparison, Aldermore's five-year fixed account currently offers 3.5% AER for deposits of £1,000 or more – only 0.11% more than the rate offered by OakNorth.
- Find out more: 6 tips on finding the best savings accounts as rates rise
Cash Isas
The main advantage of cash Isas is that you don't pay tax on your savings interest, but the interest rates are lower than other types of savings accounts.
These are the top rates for fixed-term and instant-access cash Isas by order of term:
| Account type | Account | AER | Terms |
|---|---|---|---|
| Five-year fixed term cash Isa | Hampshire Trust Bank 5 Year ISA Bond | 2.6% | £1 minimum initial deposit. |
| Three-year fixed term cash Isa | Hampshire Trust Bank 3 Year ISA Bond | 2.5% | £1 minimum initial deposit. |
| Two-year fixed term cash Isa | OakNorth Bank Fixed Rate Cash ISA | 2.3% | £1 minimum initial deposit. |
| One-year fixed term cash Isa | Tesco Bank Fixed Rate Cash ISA | 2.18% | £1 minimum initial deposit. |
| Instant-access cash Isa | Paragon Bank Triple Access Cash ISA | 1.55% | £1 minimum initial deposit. Lower rate paid if more than three withdrawals in 12-month period. |
Source: Moneyfacts. Correct as of 11 August 2022, but rates are subject to change.
There aren't currently any four-year fixed-term cash Isas that accept a deposit of £1.
It's great to protect your savings interest from tax. But it's worth noting that those with small amounts to save are unlikely to face any tax from opting for a normal savings account. Any interest will likely be covered by the personal savings allowance. Those who pay the basic rate of income tax will get up to £1,000 savings interest tax-free in each tax year.
- Find out more: how to find the best cash Isa
Regular savers
Regular savings accounts are great for savers who don’t have a massive lump sum to deposit, and perhaps want to get into the habit of saving.
The accounts listed below are available nationwide.
| Account | AER | Terms |
|---|---|---|
| NatWest Digital Regular Saver | 3.3% | £0 minimum initial deposit. Save £1-£150 each month via standing order. Must have a NatWest current account. |
| Royal Bank of Scotland Digital Regular Saver | 3.3% | £0 minimum initial deposit. Save £1-£150 each month via standing order. Must have a Royal Bank of Scotland current account. |
| Nationwide Building Society Flex Regular Saver | 2.5% | £1 minimum initial deposit. Pay in up to £200 per month, but don't have to pay every month. Must have a Nationwide current account. Only three withdrawals a year allowed before interest rate drops to 0.5%. Moves to instant-access account after 12 months. |
| Santander Regular eSaver | 2.5% | £1 minimum initial deposit. Pay in up to £200 per month, but don't have to pay every month. Must have Santander current account (excluding 123 Mini in Trust). |
Source: Moneyfacts. Correct as of 11 August 2022, but rates are subject to change.
As you can see, while the rates are higher than typical instant-access accounts, these kind of accounts tend to come with more caveats.
It's also important to remember that while most regular savers offer impressive-looking rates – as high as 5% in some cases – your money will be building up gradually, so the overall return might be more modest than you expect.
- Find out more: What are the different types of savings account?
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Listen nowConsider a high-interest current account
It's also possible to help your money grow by using a current account that offers high interest rates. That way you don't even need to worry about transferring your cash to a different account – and you can spend it when you need to.
Nationwide Building Society, for example, currently offers the highest interest rate for its FlexDirect current account holders. It pays 5% AER on balances up to £1,500 in the first year (0.25% after that). It requires a minimum of £1,000 to be paid in each month – you could fulfil this by getting your wages paid into this account if you earn at least £12,000 per year after tax and other payments.
The Virgin Money M Plus current account, on the other hand, doesn't have any restrictions and offers 2.02% AER interest on balances up to £1,000. It also unlocks access to its linked savings account, mentioned above.
- Find out more: Best high-interest bank accounts
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