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Best savings accounts to open with as little as £1
Which? analysis shows savers with smaller deposits can still get top rates of up to 5%
One in five UK adults admit they have less than £100 in savings and more than one in 10 have no savings at all, according to new research by Yorkshire Building Society. But you don't need a big lump sum to start building a nest egg.
There are plenty of accounts that let you start saving from just £1 – and the good news is, many of them offer market-leading rates.
Here, Which? reveals the best accounts you can open with a small deposit.
Best savings accounts for small deposits
The best accounts for savers with more modest sums are those that give you the flexibility to make a deposit whenever you can and to withdraw cash without notice or penalties.
We've listed the top rates available across several types of account, all of which can be opened with £1 or less.
Instant-access accounts
As the name suggests, instant-access accounts let you withdraw money whenever you need to – and the same goes for paying in money.
Unlike most fixed-rate accounts, you don't usually need a big lump sum to open an instant-access account, and many market-leading accounts accept very small deposits. In fact, 40% of the top 20 restriction-free instant-access accounts can be opened with £1 or less, based on our analysis of Moneyfacts data.
But remember, because the rate on these accounts is variable, providers can change the rate of interest with little notice.
These are the top five rates available for restriction-free instant access accounts requiring a deposit of £1 or less:
| Account | AER | Terms |
|---|---|---|
| Cahoot Sunny Day Saver | 5% | £1 minimum deposit |
| Ford Money Flexible Saver | 4.75% | £1 minimum deposit |
| Cynergy Bank Online Easy Access Account | 4.7% | £1 minimum deposit |
| Secure Trust Bank Access Account | 4.7% | £1 minimum deposit |
| Yorkshire Building Society Easy Access Saver | 4.6% | £1 minimum deposit |
Source: Moneyfacts. Correct as of 17 October 2024, although rates are subject to change.
- Find out more: Our full list of the best instant-access savings accounts
Instant-access cash Isas
The main advantage of cash Isas is that you don't pay tax on the interest you earn. However, if you are only saving a small amount, you won't need to worry about tax anyway.
That's because basic-rate taxpayers can earn up to £1,000 a year in savings interest without paying a penny in tax, while for higher-rate taxpayers the tax-free limit is £500. Additional-rate taxpayers have no personal savings allowance.
Many instant-access cash Isas offer very competitive rates. Of the top 20 instant-access cash Isas, Which? found 65% can be opened with £1 or less.
These are the top rates for instant-access cash Isas with no restrictions and low minimum deposits:
| Account | AER | Terms |
|---|---|---|
| Trading 212 | 5.1% | £0 minimum deposit |
| Chip Cash Isa (powered by ClearBank) | 4.84% | £1 minimum deposit |
| Cynergy Bank Online Isa | 4.7% | £1 minimum deposit |
| Zopa Smart Isa | 4.8% | £1 minimum deposit |
| Ford Money Flexible Cash Isa | 4.6% | £1 minimum deposit |
Source: Moneyfacts. Correct as of 17 October 2024, although rates are subject to change.
- Find out more: Our full list of the best cash Isas
Regular savings accounts
Regular savings accounts are great for savers who don’t have a big lump sum to deposit, and perhaps want to get into the habit of saving. Our analysis of Moneyfacts data shows that 50% of the top 20 regular savers can be opened with just £1 or nothing at all.
But watch out – while the rates are typically higher than instant-access accounts, they usually come with more caveats.
For example, some require you to have a current account with the same provider. They also restrict the amount you can pay in: maximum monthly deposits are typically between £250 and £500. What's more, the rates only apply for a limited time, usually 12 months.
It's also important to remember that while regular savers can offer impressive-looking rates – as high as 8% – your money will be building up gradually, so the overall return might be more modest than you expect.
The market-leading accounts listed below are all available to open with just £1 or less:
| Account | AER | Terms |
|---|---|---|
| Principality Building Society 6 Month Regular Saver | 8% | £0 minimum deposit. Save up to £500 a month |
| The Co-operative Bank Regular Saver (a) | 7% | £1 minimum deposit. Save up to £250 a month |
| Skipton Building Society Regular Saver (a) | 7% | £1 minimum deposit. Save up to £250 a month |
| Nationwide Building Society Flex Regular Saver (a) | 6.5% | £1 minimum deposit. Save up to £200 a month. Only three withdrawals a year allowed before loss of interest. |
| NatWest Digital Regular Saver (a) | 6.17% | £0 minimum deposit. Save up to £150 a month |
Source: Moneyfacts. Correct as of 17 October 2024, although rates are subject to change. (a) Only available to existing current account customers, or requires membership with provider
- Find out more: Our full list of the best regular saver accounts
How limiting withdrawals can boost your returns
Some top-rate instant-access accounts limit the number of withdrawals you can make.
For example, Atom Bank launched a new instant-access account this week, offering an impressive rate of 4.85% AER. There's no minimum deposit required to open the Instant Saver Reward account, but there is a catch. If you make any withdrawals during a calendar month, the rate for that whole month – no matter what day you make the withdrawal on – drops to 3.25%.
Our analysis of Moneyfacts data found 45% of the current top 20 instant-access accounts limit the number of withdrawals you can make before imposing penalties.
Another restriction to watch out for is an introductory 'bonus' interest rates. These typically last for 12 months, after which the rate drops.
- Find out more: What are the different types of savings account?
