The best UK savings rates this week

Last updated: 2 May 2024 at 12:00

Longer-term fixed bonds inch higher as leading rates remain stable.

Although some providers have been launching competitive new accounts and increasing rates, the tops of our savings charts have seen little change.

The leading rates on three- and five-year bonds inched upwards after SmartSave raised its rates, but it’s worth noting that shorter-term fixed bonds and easy access accounts continue to pay a higher rate of interest.

Elsewhere, savers may be interested in the new current account switching offer from Virgin Money. If you move your current account to one of Virgin Money’s three eligible accounts through the Current Account Switch Service, you could receive a bonus interest rate of 10% gross on current account balances of up to £1,000. This bonus rate applies between 1 July 2024 and 30 June 2025.

Before switching, it’s important to check the terms of the offer and the account to make sure it’s suitable for your requirements.

Below, we’ve highlighted and provided more details on the best easy access, fixed and notice savings rates currently available. These products can be opened by new customers with a deposit of up to £10,000. However, higher rates may be available to existing customers or those who have a larger initial investment.

For a comprehensive overview of the savings market, visit our charts.

Easy access accounts

The leading easy access rates remained the same this week. Ulster Bank’s Loyalty Saver continues to top our chart, paying 5.20% AER yearly on balances of £5,000 or more. A lower rate of 2.25% applies on balances below this sum. You can open and manage this account online, by mobile app or by phone, with the further option of managing it in branch once open. Bear in mind that this account is only available if you’re a new or existing Ulster Bank current account customer.

Just behind this leading rate are Paragon Bank and Close Brothers Savings that both pay 5.00% AER.

Paragon Bank’s Raisin UK - Rainy Day 2024 Easy Access Account pays this rate monthly on a sizeable minimum opening deposit of £10,000. You can open and manage this account online or via mobile app but, because this account is operated via Raisin UK’s Savings Marketplace, you’ll need to set up a Raisin UK account first. Bear in mind that, while there’s no limit on the number of additions or withdrawals you can make from this account, all deposits have to be a minimum of £1,000 and all withdrawals a minimum of £500.

The online-only Easy Access Account Issue 3 from Close Brothers Savings also pays this rate on a minimum deposit of £10,000. This account pays interest on anniversary.

Paying the next-highest rate of 4.96% AER is the Easy Access Account - Issue 70 from Kent Reliance. It requires a minimum opening deposit of £1,000, with the option to open the account online or in branch. Once open, you can also choose to manage the account by phone. However, while there are no restrictions on withdrawals, bear in mind that the withdrawal method you’re able to use will depend on how you opened the account. Interest on this account is paid yearly or monthly.

Best Fixed Rate Bonds

Topping our one-year fixed bond chart for another week is the 1 Year Fixed Rate Saver from SmartSave as it continues to pay 5.18% AER. However, this week it is joined by two accounts from Habib Bank Zurich plc.

SmartSave’s online-only account pays this rate on maturity on a minimum balance of £10,000. After making an initial deposit, you can continue to add to the account for 14 further days.

Meanwhile, the HBZ Fixed Rate eDeposit from Habib Bank Zurich plc also pays 5.18% AER on maturity. The HBZ Sirat eDeposit (Fixed Term Account) from the same provider is a Shari’ah-compliant account and pays an expected profit rate of 5.18% AER. You can open both of these accounts online with a minimum deposit of £5,000, with the option to add to your savings for 30 days after opening. Once open, you can only manage the accounts by phone or by post.

After Hampshire Trust Bank withdrew its previously market-leading account, the leading rate on two-year bonds has dipped slightly this week. Paying 5.05% AER, RCI Bank UK and Close Brothers Savings now share the top position on our chart.

The 2 Year Fixed Term Savings Account from RCI Bank UK pays this rate on anniversary or monthly on a minimum opening deposit of £1,000. You can open and manage this account online, with the extra option to manage it by mobile app if you prefer. Once open, you can add to your savings for 14 further days.

The 2 Year Fixed Rate Bond from Close Brothers Savings pays 5.05% AER yearly on a minimum balance of £10,000. You can open this account online and continue to add to your savings for 10 days after opening. As well as managing the account online, you can also choose to manage it by phone or by post.

After sharing the top of the three- and five-year fixed bond charts with Shawbrook Bank last week, SmartSave marginally increased its rates and now stands alone at the top of these charts. Its 3 Year Fixed Rate Saver now pays 4.72% AER while its 5 Year Fixed Rate Saver pays 4.58% AER.

These online-only accounts pay interest on maturity on a minimum balance of £10,000 and allow you to add to your savings for 14 further days if you choose.

Bear in mind that the fixed rate bonds mentioned above don’t allow you to access your money before the end of the term.

Notice Accounts Saving Rates

The leading rate on 30 day notice accounts continues to come from the FirstSave 30 Day Notice Account (Feb24) at 4.85% AER. You can open this account online with a minimum deposit of £100, with the option to have interest paid on anniversary or monthly. After opening, you can continue to manage the account online or, if you prefer, you can also choose to manage it by phone or by post. While you normally have to wait 30 days to withdraw from this account, FirstSave allows you to access your money earlier. However, this is subject to a 30-day loss of interest.

A higher rate of 5.16% AER is available if you’re prepared to take out an account with a longer notice period. Shawbrook Bank’s 45 Day Notice Personal Account Issue 14 pays 5.16% AER monthly or on anniversary on a minimum balance of £1,000. You can open this account online and, once open, you can manage it online or by phone. Unlike FirstSave, you can’t access your money earlier, so you need to wait the full 45-day notice period before making a withdrawal.

Oxbury Bank continues to top our 90 day notice charts this week with its Personal 90 Day Notice Account (Issue 13) that pays 5.26% AER monthly. You can open this account online with a minimum deposit of £1,000 and continue to manage it online or via mobile app. It’s worth noting that you need the Oxbury App to access online banking. Bear in mind that, as earlier access isn’t allowed, you need to wait the full 90-day notice period to withdraw your money.