UK savings deals: the heat is on as banks offer up to 8%
Summary
UK banks and financial providers are offering higher interest rates on savings accounts due to increased competition. Savers can find instant-access accounts with up to 5% interest, fixed-rate bonds near that level, and regular savings accounts offering up to 8%.Key Facts
- More than half of the 1,385 reviewed savings accounts now pay interest above the Bank of England’s base rate of 3.75%.
- Instant-access accounts pay around 2.53% on average, with top offers like Revolut paying 5% until December 4, 2024.
- Chase offers a new account paying 4.5% for new customers, requiring a linked current account.
- Fixed-rate savings bonds require locking money in for 6 months to 5 years; one-year bonds pay around 4.22% on average, with some bank offers up to 4.9%.
- Regular savings accounts, where you save a set amount each month, can pay up to 8% interest but often require a current account and may limit withdrawals.
- Lloyds, Halifax, Bank of Scotland, and Santander all provide regular savings accounts paying 8% for 12 months.
- Interest earned above tax-free limits on regular savings accounts can be subject to tax if not held in an ISA (Individual Savings Account).
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