Summary

• Easy-access accounts let you withdraw at any time, but the average easy-access rate is usually lower than rates on accounts that restrict access. On 10 September 2026, Moneyfacts reported an average easy-access rate of 2.53% AER and an average one-year fixed-rate bond rate of 4.28% AER.

• Regular savers, notice accounts and fixed-rate bonds each trade some flexibility for a potentially higher rate. Each has limits, such as monthly deposit caps, notice periods or early-withdrawal restrictions.

• CPI inflation was 3.1% in the 12 months to August 2026 (ONS). A rate below inflation means your savings lose spending power over time, even though the balance grows.

Bank of England figures (series LPMZOD3) show that individuals held £283.2 billion in non-interest-bearing sight deposits with UK banks and building societies in July 2026. This article explains how three types of savings account work, how their rates are set, and what to check before opening one.

Market-wide figures in this article come from Moneyfacts (average rates published 10 September 2026) and Moneyfactscompare (top easy-access rates updated 25 September 2026). These reflect accounts listed on those sites and may not cover the whole market. Rates change often, so check current rates before you decide.

How the Bank Rate affects savings rates

Savings rates tend to move with the Bank of England's Bank Rate, although providers decide their own rates and don't have to pass changes on.

After more than a decade of historically low rates, the Bank of England raised the Bank Rate 14 times between December 2021 and August 2023, taking it from 0.1% to a peak of 5.25%. That pushed savings rates to their highest levels in many years. The Bank began cutting in August 2024 and reached 3.75% in December 2025. On 5 November 2026 it raised the rate to 4%, its first increase since August 2023, as the Middle East conflict pushed up energy prices and inflation.

You can check the current rate on the Bank of England website.

The chart below illustrates how deposit rates have changed over the past few years, in relation to the base rate and CPI rate.

How easy-access accounts work

Easy-access savings accounts let you pay in and withdraw money whenever you want. Their rates are variable, so the provider can change them at any time.

Based on rates listed on Moneyfactscompare on 25 September 2026, the five highest easy-access rates ranged from 4.30% to 5.00% AER, compared with a Moneyfacts average of 2.53% AER (10 September 2026). Some of the highest rates include a temporary bonus that ends after a set period, or require you to hold another product with the same provider, so check the conditions and what the rate drops to afterwards.

If your provider cuts the rate, FCA guidance says it should give you reasonable notice in writing (or another durable medium) before the cut takes effect, unless your balance is under £100. This gives you a chance to compare other accounts before the change.

1. Regular savings accounts

Regular savings accounts let you pay in a set amount each month, up to a monthly limit, usually for a fixed term such as 12 months. Headline rates on regular savers are often higher than on easy-access accounts, but there are some things to know:

• The rate only applies to what you've paid in so far. Because your balance builds up month by month, you earn much less interest than you would on a lump sum at the same rate. For example, if you paid £250 at the start of each month for 12 months into an account paying 6% (an illustrative rate), you'd earn about £97.50 in interest on £3,000 paid in, before tax. The same £3,000 deposited as a lump sum at 6% for a year would earn £180.

• Monthly limits. You can't usually pay in a lump sum, and some accounts limit or penalise withdrawals during the term.

• Eligibility conditions. Some regular savers are only open to people who hold the provider's current account.

• What happens at the end. At the end of the term, the money often moves into a different account with a lower rate.

Read more: How regular savings accounts work

2. Notice savings accounts

Notice savings accounts are similar to easy-access accounts in that you can usually pay in when you like, and rates are usually variable (some track the Bank Rate). The difference is that you must give notice before you withdraw money.

For example, with a 90-day notice account, you'll receive your money 90 days after you ask to withdraw it. Some accounts allow earlier access with a loss of interest; others don't allow it at all.

Notice accounts may pay more than easy-access accounts, and some providers pay more for longer notice periods, but this isn't always the case and the difference can be small. Compare the rate with what you could get on an easy-access account, and think about whether you could wait for the notice period if you needed the money.

3. Fixed-rate savings bonds

With a fixed-rate bond, you deposit a lump sum for a set term, such as one, two or five years, and the rate stays the same for that term. The average one-year fixed-rate bond paid 4.28% AER on 10 September 2026, according to Moneyfacts.

Things to consider:

• Access. You usually can't withdraw money before the term ends, or you may pay a penalty.

• Rate changes. If rates on other accounts rise during the term, you can't move your money to benefit. If they fall, your rate stays the same.

• Longer isn't always higher. Longer fixes don't always pay more than shorter ones. In December 2024, for example, Moneyfacts reported that the average one-year fixed bond (4.18%) paid more than the average longer-term fixed bond (3.90%).

• Deposit limits. Many bonds set a minimum and maximum deposit.

Tax on savings interest

Most people can earn some savings interest tax-free under the Personal Savings Allowance: £1,000 a year for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers. The starting rate for savings may let you earn up to £5,000 more tax-free if your other taxable income is under £17,570. Interest in a cash ISA is tax-free; the ISA allowance is £20,000 for 2026/27. From 6 April 2027, the government plans to limit the amount under-65s can put in cash ISAs to £12,000 a year. See GOV.UK for details.

How your savings are protected

Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised bank, building society or credit union. Some brands share one banking licence, which means they share one £120,000 limit. You can check whether a provider is covered using the FSCS protection checker.

Read more: Got savings? Here's why FSCS savings safety protection is important

This article explains how different types of savings accounts work. It doesn't cover the whole market or every type of account, and it isn't financial advice. Rates and terms change frequently, so check the provider's own website before opening an account.