The best UK savings accounts are now paying up to 8% interest, with Santander offering the market-leading rate for current account customers. This is far above the average return many Brits currently receive, with some accounts paying no interest at all.
Personal finance experts have repeatedly warned about the returns being missed by keeping money in low-interest accounts. However, several providers now offer rates that beat both the market average and inflation, giving savers a chance to protect their spending power and reach their savings goals sooner.
Top Rates Require Current Accounts
According to Martin Lewis' Money Saving Expert, the best rates typically require customers to hold a current account, or be willing to open one, to access regular saver deals. The top-paying account comes from Santander, offering 8% on up to £200 per month, which would generate £104 in interest after a year if maxed out.
The Santander rate is variable and could change, and the 8% only applies for a year before dropping to 3%. Lewis warned that most regular savers only last for a shorter fixed term, normally one or two years, after which savings are often swept into a bog-standard account paying much less.
Full List of Top Accounts
- Santander - 8%: Variable for 1 year (3% thereafter), with a maximum monthly deposit of £200.
- First Direct - 7%: Fixed for 1 year, with a maximum monthly deposit of £300.
- Co-operative Bank - 7%: Variable for 1 year, with a maximum monthly deposit of £250.
- Chase - 6.5%: Fixed rate for one year, with a maximum monthly deposit of £300.
- Nationwide - 6.5%: Variable rate for one year, with a maximum monthly deposit of £200.
- Leeds Building Society - 6.5%: Variable until 1 Nov 2027, with a maximum monthly deposit of £250.
- Club Lloyds Monthly Saver - 6.25%: Fixed for a year, with a maximum monthly deposit of £250.
- Skipton BS - 5.75%: Variable for a year, with a maximum monthly deposit of £250.
While these accounts offer the highest rates, they usually have monthly deposit limits. Savers might find better value in an account with a slightly lower interest rate that allows unlimited monthly deposits.
Lewis advised savers to remember to check for better rates after their regular saver ends, as the funds are typically moved to a lower-paying account.
