Savings

Want to squeeze more out of your savings?

Use up your ISA allowance!

You can save up to £15,240 into a cash ISA before the tax year ends on April 5 – and you won’t pay a penny of tax on the interest you earn.  If you DON’T use your 2015-2016 allowance by then however, it will be gone for good.

Variable Cash ISAs - tax free savings - featured accounts - ordered by rate (AER)

  1. 2015 SUPERS

    Winner of the best overall savings provider

    Great for
    Regular tax-free savings with no requirement to make monthly deposits
    Instant access to your savings (subject to your annual ISA allowance)
    But be aware that
    Maximum monthly net balance increase is £1,270 until 01 March 2016
    From 1 March 2016, the maximum monthly deposit limit will be removed and you can then deposit up to the annual ISA allowance
    Accepts new subscriptions only
  2. 2015 SUPERS

    Winner of the best overall savings provider

    Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually
    • Provider/Product name Cash ISA

      Sainsbury's

      Cash ISA

    • Interest rate (AER) 1.40% Variable
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    Transferring existing ISA balances
    Make multiple deposits up to the £15,240 annual allowance - or the full amount in one transaction
    For new and existing customers
    But be aware that
    Lower rate of 0.50% AER for balances that fall below £500
    You must be a UK resident aged 18 or over

Easy access - ideal for those who need regular access - featured accounts -ordered by rate (AER)

  1. Great for
    1.35% Gross/AER variable
    Open an account from just £1
    No penalties or restrictions when accessing your money
    But be aware that
    This account is available for a limited time only
    • Provider/Product name Internet Saver

      Tesco Bank

      Internet Saver

    • Interest rate (AER) 1.35% Variable Includes Fixed bonus of 0.60% for 12 months
    • Min/Max opening amount £1 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    1.35% Gross/AER variable (includes a fixed bonus of 0.60% for 12 months)
    Opening and managing your account online
    Opening an account with just £1
    But be aware that
    Rate includes a bonus, you may want to move your money at the end of this period
    • Provider/Product name Telephone Saver (Issue 16)

      Saga

      Telephone Saver (Issue 16)

    • Interest rate (AER) 1.35% Variable Includes Fixed bonus of 0.85% for 12 months
    • Min/Max opening amount £1,000 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    1.35% gross/AER which includes a fixed bonus of 0.85% for up to 12 months
    Applying online or by phone
    Interest paid annually as shown or monthly at a lower gross rate
    But be aware that
    If funds are withdrawn and the balance drops below £1,000 the interest rate will become 0.50% gross/AER variable for the period the balance remains below £1,000
    After 12 months, interest will revert to the variable interest rate without bonus, currently 0.50% gross/AER variable
    Available for those who are aged 50 or over
    • Provider/Product name eSaver Special

      Sainsbury's

      eSaver Special

    • Interest rate (AER) 1.30% Variable
    • Min/Max opening amount £30,000 to £100,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    Tiered rates depending on your balance. 0.50% gross/AER variable £1-£999; 1.20% gross/AER variable £1,000-£14,999; £1.25% gross/AER variable £15,000-£29,999; 1.30% gross/AER variable £30,000-£100,000; 0.50% gross/AER variable £100,001+
    No withdrawal restrictions
    For new and existing customers
    But be aware that
    The rate you get depends on your balance

Fixed rate bonds - Maximise your savings by fixing - featured accounts - ordered by term then rate (AER)

  1. Great for
    Online application and access
    A choice between monthly or annual interest
    FSCS protection up to £85,000 per depositor
    But be aware that
    Withdrawals are not permitted within the fixed term
  2. Market leading

    Market leading 4 year fixed rate bond

    Great for
    UK based bank with FSCS protection
    A choice between monthly or annual interest
    Supported by a dedicated UK based customer service team
    But be aware that
    Additional deposits and withdrawals are not permitted within the fixed term
  3. Great for
    Online application with a guaranteed rate of interest for full term of product
    Available as sole or joint accounts
    FSCS protection up to £85,000 per depositor
    But be aware that
    Early withdrawals are subject to a penalty
    Available to UK residents aged 18 or over who have an account with an existing UK bank

Frustrated with low easy access savings rates? You can earn more with a CURRENT account

To get the highest easy access rates on your cash, you’ll need to use a current account. And if you have a sizeable savings balance, Santander’s 123 is a winner…

• You’ll earn 3% AER on balances between £3,000 and £20,000.

• Plus you’ll get cashback of between 1% and 3% on major household bills

There’s a £2/month fee but interest and cashback should easily outweigh the cost. You’ll also need to pay in at least £500 month and set up two direct debits, and you’ll need to maintain a £1,000 balance to earn interest. But, if you can use Santander 123 as your main current account, it could be a much better home for your savings.

The Santander 123 Current Account

  1. 2015 SUPERS

    Winner of the best overall current account provider

    Great for
    Higher interest than standard savings - 3% AER with easy access, from £3,000 to £20,000 balance. Cashback on your Direct Debits:
    3%: on mobile, home phone, broadband & paid for TV packages. 2%: on gas and electricity bills
    But be aware that
    You must use it like a current account – including paying in £500 per month, and setting up at least two Direct Debits
    There is also a £2 monthly fee

Not sure what account is right for you? Use our Savings Decision Tree to help you decide!

 

Savings. Trust us to explain them simply

Easy access accounts

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It’s always a good idea to have some savings readily available in case of emergencies. Ideally, your ‘rainy day’ savings fund should amount to between three and six months’ income...

Understanding Interest

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When you deposit savings with a bank or building society you will be paid interest on the money. How much interest you earn will partly depend on...

Saving for retirement

Saving for retirement is essential if you want the financial freedom to enjoy your later years. The State Pension is currently worth a maximum of £113.10 a week.  

And even though it generally increases slightly every year, it is highly unlikely to provide the income you need to maintain a comfortable standard of living once you have stopped working.

Guide to savings

Savings Guides

Money is tight so it’s more important than ever to get a good deal on your savings, whether you are putting money aside for a holiday or for your children’s future. But it’s not always easy to find the right savings account.

The number of savings accounts on offer can also make it difficult to choose the best deal. But if you read our guide to savings and use the MoneySuperMarket website to compare all types of account, it should be simple to find a top rate. You can also work out how much interest you’ll earn by using a savings calculator.

Read more

Just remember that you need to regularly monitor your rate and maybe even switch your account to make sure your cash is always working hard.

How do I choose a savings account?

Savers can often be overwhelmed by the range of accounts on the market, all with different rates and different rules. Some people simply select the account that pays the highest rate of interest. But it’s important to look beyond the headline rate at the terms and conditions of the account. You might, for example, be able to earn 5% in a regular savings account, but if you cannot put money aside each and every month, the account is not for you.

Instant or easy access accounts are the most straightforward - and the most flexible - because you can usually deposit and withdraw your cash pretty much when you like.

If you think you might be tempted to dip into an easy access account, a notice account might be more suitable because you have to give notice of any withdrawals. The notice periods vary, but can be as long as 120 days. Always compare the rates on notice accounts against easy access deals. Notice accounts traditionally paid higher rates of interest than easy access accounts, because of their inflexibility. But these days, you can often earn more with easy access.

You might be able to earn a higher rate of interest in a fixed-rate account, sometimes called a bond. The accounts pay a fixed rate of interest for a set term, usually between one and five years, and can be ideal if you are saving for an event in the future. But watch out for penalties. If you withdraw any money before the term of the bond expires, you usually forfeit interest.

A number of banks and building societies offer regular savings account that demand a monthly commitment, usually for one year. The amount you can save in a regular account is also limited to a maximum of about £300 a month.

Older savers might be able to earn preferential rates in over 50s accounts. Interest on children’s accounts can also be high to tempt even the very youngest savers to open an account. If you need an account that accepts sterling, Euros or dollars, you might want to consider an offshore account. They can be useful if you are paid in another currency or you earn additional income in a foreign currency, perhaps from a rental property overseas.

You may also be looking for a business savings account – business savings accounts are a great way to enjoy a higher rate of interest so that your cash is working harder for you and your business.

Are my savings taxed?

Her Majesty’s Revenue & Customs automatically swipes 20% tax off your savings. If you are a 40% or 45% taxpayer, you have to declare the savings interest on your tax return and pay any additional tax due.

However, this will change from April 2016 when basic-rate taxpayers will be able to earn £1,000 of savings interest without the taxman taking a slice, and higher rate taxpayers will be able to earn £500.

Are there any tax-free accounts?

A Cash ISA is just like an ordinary savings account, with one important exception – the interest is tax free. You can find out more about the current ISA allowance here. You can save up to £15,240 in a cash ISA in the current tax year and you can choose from a range of different accounts, including easy access ISAs and fixed-rate ISAs.  Taxpayers should almost always put money in an ISA, ahead of a standard savings account. 

In November 2011, the Junior ISA was born. Parents, relatives and friends can invest up to £4,080 each year into a Junior ISA and the money grows tax-free until the child reaches 18.

Are there any catches with savings accounts?

Short term bonuses

Many of the top rate accounts include an introductory or short-term bonus. For example, an account might advertise a headline interest rate of 1.5%, which includes a bonus of one percentage point for one year. In other words, after 12 months, the rate on the account will drop to 0.5%.

The bonuses help to propel the accounts into the best buy tables, but they can work to the savers’ advantage – as long as you are prepared to search for a better deal when the bonus expires.

Deposit and withdrawal restrictions

Some accounts restrict the amount you can save, or the amount or frequency of any withdrawals. You have to make sure you don’t breach the limits otherwise you could lose interest.

Online access

It’s usually cheaper for a bank to offer internet accounts than branch based deals, so you can often earn a higher rate of interest if you manage your account online.

When is interest paid?

Interest on savings accounts is usually paid either monthly or annually. It’s probably best to opt for annual interest, unless you expect frequently to dip into your funds.

Are my savings safe?

The tough economic conditions have made savers wary of even the biggest banks in the world. But if your bank or building society goes bust, as long as it is regulated by the Financial Services Authority, the first £85,000 of your money is guaranteed under the Financial Services Compensation Scheme. If you have a lot of savings and are you are particularly nervous, you should therefore make sure you don’t deposit more than £85,000 with one institution.

 

How our site works

  1. Tell us which type of savings account you're interested in
  2. Use our simple savings account search if you’re unsure of the best account type
  3. You can choose the account that suits you best and apply online through the provider

Why are we the best website for savings comparison?

Simply because we offer a free, independent and whole of market view. That’s all savings accounts in one place.

How our site is paid for

We like being straightforward at MoneySuperMarket, so we want to let you know how we get paid. 

How do we make money on savings accounts at MoneySuperMarket?

When someone applies for a savings account through MoneySuperMarket, the bank or building society that runs that account will usually pay us a fee. 

We don’t work directly with all banks and building societies, so we don’t make any money from some of the savings accounts we show. 

Do we offer the ‘whole of market’ on savings accounts?

We try to, but not every bank or building society offering savings accounts wants to be on our site. 

We include as many savings accounts as we can on MoneySuperMarket – including accounts from banks and building societies we work with and those we don’t.

You can apply for savings accounts from banks and building societies we work with by clicking ‘Go to site’. If you’d like to apply for a savings account from a company we don’t work with, you may have to go to their website directly.

The accounts in our ‘featured’ lists are from banks and building societies we work with.

You can choose to ‘see all’ the savings accounts on our site, or go here to see all the accounts.

How do our relationships with banks and building societies affect our service to you?

We never allow banks and building societies to get in the way of what’s best for our customers. So we always display savings accounts by their benefits to you – such as the best interest rate – never by what’s best for a bank or building society. 

Why are we telling you this?

Our services are always free to you, our customers. But we think it’s important that we’re transparent about how we earn money, so you can be confident we put our customers first.

 

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