Britain's top savings accounts are paying their highest rates in almost two years, offering a boost for savers. The leading one-year fixed-rate bond now pays 4.91%, the highest available to new customers since October 2024, while the best five-year deal has climbed to 4.94%, according to Moneyfactscompare.co.uk.
This resurgence comes despite growing speculation about further Bank of England interest rate cuts. Experts urge savers not to leave cash earning poor returns, as many could miss out on hundreds of pounds a year by failing to switch.
Potential Gains from Switching
Moneyfacts calculates that someone with £20,000 in a closed easy-access account paying an average 2.40% would earn just £480 over a year. By moving the money into a best-buy easy-access account paying 4.51%, they would pocket £902 – an extra £422 without saving another penny.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said the improving market offered savers a rare opportunity. "Savers who want a guaranteed return on their hard-earned cash can reap the rewards of the highest fixed bond rates since 2024," she said.
Time-Sensitive Offers
Springall warned that the best deals may not last long. "Savers might want to move quickly to grab the best rates; for example if a challenger bank reaches its funding targets, this in turn can lead to a rate cut or the deal being pulled entirely."
Unlike easy-access accounts, fixed-rate bonds are not directly linked to movements in the Bank of England's base rate, meaning attractive deals can still emerge even if official borrowing costs fall.
Loyalty Does Not Pay
Moneyfacts said only 18% of easy-access savings accounts currently pay more than the Bank's 3.75% base rate, leaving many loyal customers earning well below the best available returns. Springall added: "Those savers who prefer to keep their cash close to hand with an easy access account must still make the effort to check their rate and switch, because loyalty does not pay."
- One-year fixed bond: 4.91% – Habib Bank Zurich plc / OakNorth Bank
- Five-year fixed bond: 4.94% – GB Bank
- Easy-access savings: 4.51% – Tembo HomeSaver
The average rate on all new savings accounts has risen to 3.59%, its highest level since May 2025. For savers frustrated by years of lacklustre returns, the message is simple: now could be the time to shop around before today's market-leading deals disappear.
