Which banks offer high interest on savings?
High-interest savings in the UK can come from both traditional high-street names and smaller building societies or digital banks, but the “highest” option changes frequently. The key is knowing which account types to compare, how AER works, and what rules (access, limits, tax, protection) affect your real return.
In the UK, the banks and building societies offering high interest on savings tend to change as rates move and providers adjust their products. Rather than relying on a fixed list, it helps to understand which account types usually pay more, what restrictions come with those rates, and how to compare like-for-like using AER (Annual Equivalent Rate).
What savings accounts are available right now?
The first step in answering “Which banks offer high interest on savings?” is clarifying the type of account you mean. Easy-access accounts usually pay variable interest and let you withdraw with few restrictions, but the rate can change. Notice accounts can pay more, but require advance notice (for example, 30–120 days) before withdrawal. Regular savers may offer higher rates but cap monthly deposits and can reduce the rate if you break the rules. Fixed-term savings (often called bonds or term deposits) typically pay a fixed rate for a set period, with limited or no access until maturity.
When people ask, “What are currently the available savings accounts?”, they are often looking at a mix of these options across high-street banks, app-based banks, and building societies. In practice, the most competitive rates are frequently found on accounts with at least one “constraint”: a fixed term, a deposit limit, a notice period, or eligibility requirements (for example, needing a linked current account).
How to compare high-interest term deposits in the UK
If you are looking beyond easy access, “How can you compare high-interest term deposits?” comes down to matching term length, access rules, and the way interest is paid. Compare the AER and whether interest is paid monthly or annually, because payment timing affects compounding and cashflow. Also check what happens if you need money early: many fixed-term products either do not allow early access or apply a penalty that can materially reduce your return.
A clean comparison also considers minimum and maximum balances, whether the account is opened and managed online, and whether the provider restricts “new money” only (funds not already held with them). Finally, look at deposit protection. In the UK, eligible deposits are generally protected by the FSCS up to £85,000 per person, per authorised institution (banking licence). If you spread large balances, it is the licence that matters, not the brand name on the app.
Overview of banking products that affect your rate
An “Overview of banking products” is useful because a bank can offer multiple savings routes with very different economics. Instant-access savings may be designed for convenience rather than the highest interest. By contrast, fixed-term bonds are built for funding stability, which is why they can pay more when you commit your money for longer. Some providers also offer tiered rates, where higher balances earn a different rate than smaller balances, or promotional rates that revert after a period.
It is also worth accounting for tax and how it changes your net return. Interest is normally paid gross, and many savers rely on the Personal Savings Allowance (PSA), which depends on your income tax band. If you exceed your PSA, the effective return on a “high interest” account can drop, particularly compared with tax-efficient alternatives. Separately, National Savings & Investments (NS&I) products are backed by HM Treasury, which is a different safety framework from FSCS protection, though the product return structure (for example, prize-based outcomes) may not behave like a normal interest-bearing account.
Practical tips to maximise returns on savings
Real-world “high interest” is usually a trade-off between rate and restrictions, so practical tips to maximise returns on savings often involve mixing accounts: an easy-access pot for emergencies, plus fixed-term or notice savings for money you do not expect to need soon. To keep comparisons fair, look for the AER, confirm whether it is variable or fixed, and read the conditions that can reduce your interest (withdrawal limits, missed deposits on regular savers, or needing a linked account).
Below is a fact-based snapshot of real UK providers and common savings product types you can use when comparing options; the “cost” here is the interest/return you can expect to see quoted, but the exact figure varies by product version and changes over time.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Easy-access savings | Chase UK | Variable AER; check the provider’s published AER for the current rate |
| Easy-access or linked-bank savings | Barclays | Variable AER; may depend on account type and eligibility; check current AER |
| Fixed-term savings bond (term deposit) | Nationwide Building Society | Fixed AER for a set term (for example 6–24 months); check current AER |
| Fixed-term savings bond (term deposit) | Coventry Building Society | Fixed AER for a chosen term; early access may be restricted or penalised |
| App-based savings pots (often via partner banks) | Monzo | AER varies by partner provider and term (easy access vs fixed); check current AER |
| Prize-based savings | NS&I (Premium Bonds) | No guaranteed interest; outcomes depend on prizes; provider publishes an expected prize rate |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
In summary, the banks that offer high interest on savings are not a single static list: the most competitive options in the UK tend to rotate between high-street banks, digital banks, and building societies as they adjust rates and conditions. A clear comparison using AER, access rules, deposit limits, and protection frameworks will usually tell you more than brand reputation alone.
