The best UK savings rates this week

Last updated: 16 May 2024 at 12:45

Selected savings rates edge higher as attention is focused on the next inflation announcement on 22 May.

After last week’s announcement that the base rate will remain at 5.25%, there hasn’t been any major changes at the top of our charts. Some market-leading rates have edged higher after providers launched and relaunched products, but many have stayed the same as last week.

With expectations that the base rate will eventually fall this year, now may be a good time for savers to review their savings and compare rates to see if they can find a better deal.

“Variable savings rates can change at any time and, as we have seen in the past, a base rate cut can have a detrimental impact on the savings market,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

“Those prepared to lock their cash away for a guaranteed return could grab a fixed rate bond, as some one-year deals still pay over 5%, but six months ago there were some paying 6%. Whichever account savers choose, any clear indications of an impending base rate cut could lead to an upheaval in the market, so savers must not be complacent,” she concluded.

Attention will now be focused on the latest inflation figures which will be released next week (22 May), as these could indicate whether a drop in the base rate is imminent or still some months away.

The providers listed below currently offer the best easy access, fixed and notice savings rates. These products are available to new customers with a deposit of £10,000. Keep in mind that higher rates may be available to existing customers or those who are willing to save more than £10,000.

Be sure to check out our charts to see an overview of the savings market to help you find the best rates.

Easy access accounts

The market-leading easy access savings rate continues to come from Ulster Bank’s Loyalty Saver which pays 5.20% AER on balances of £5,000 or more. Interest is paid yearly, but bear in mind that a lower rate of 2.25% applies on balances below £5,000. You can open and manage this account online, by phone or via mobile app, with the further option to manage it in branch once open. However, it’s worth noting that this account is only available if you’re a new or existing Ulster Bank current account customer.

Paragon Bank and Close Brothers both pay the second-highest easy access rate at 5.00% AER. Paragon Bank’s Raisin UK - Rainy Day 2024 Easy Access Account pays this rate monthly, but you’ll need to set up a Raisin UK account as it is operated via Raisin UK’s Savings Marketplace. Once you have a Raisin UK account, you can open and manage this savings account online and via mobile app. Bear in mind that you need a hefty minimum opening deposit of £10,000 for this account and, while there’s no limit on the number of additions or withdrawals you can make, all deposits have to be a minimum of £1,000 and all withdrawals a minimum of £500.

Meanwhile, the online-only Easy Access Account Issue 3 from Close Brothers Savings pays 5.00% AER on anniversary on a minimum deposit of £10,000. There are no restrictions on adding to or withdrawing from your account.

The Easy Access Account - Issue 70 from Kent Reliance rounds off our top three easy access rates. It pays 4.96% AER yearly and monthly on a minimum opening deposit of £1,000. You can open and manage the account online or in branch, with the further option to manage it by phone. Once open, you can add to your account by bank transfer, cheque or depositing cash at a branch. While withdrawals are allowed without restriction, bear in mind that the method of withdrawal will depend on how you opened the account.

Best Fixed Rate Bonds

Two accounts from Al Rayan Bank continue to pay an expected profit rate of 5.20% AER and top our one-year fixed bond chart. The Raisin UK - 1 Year Fixed Term Deposit pays this rate on maturity and requires a minimum opening deposit of £1,000. You can open and manage this account online and via mobile app, but bear in mind you need a Raisin UK account as it is operated through the Raisin UK Savings Marketplace.

Meanwhile, the 12 Month Fixed Term Deposit from Al Rayan Bank pays the same expected profit rate of 5.20% AER quarterly. You can open this account online, by phone or via mobile app with a minimum deposit of £5,000. Once open, you can manage it online, via mobile app or by post.
Neither account from Al Rayan Bank allows further additions after your initial deposit.

DF Capital launched a new two-year fixed bond this week that now tops our chart. Paying 5.07% AER on maturity, the 2 Year Fixed Rate Deposit (Issue 14) requires a minimum opening deposit of £1,000 and allows further additions for 14 days after opening. You can open this account online and manage it online or by phone.

Birmingham Bank tops our three-year bond chart for another week and, after launching a new five-year bond, it now tops this chart as well. Its 3 Year Fixed Rate Bond - Issue 5 pays 4.73% AER while its 5 Year Fixed Rate Bond - Issue 1 pays 4.58% AER. Both accounts pay interest on anniversary on a minimum opening deposit of £5,000 and give you the option to add to your account for 14 days after opening (via a nominated account). You can open these accounts online but, once open, you can only manage them by phone or by post.

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 FirstSave 30 Day Notice Account (Feb24) continues to top our 30 day notice charts at 4.85% AER. It pays this rate on anniversary or monthly on a minimum deposit of £100. You can open this account online and continue to manage it online, by phone or by post. FirstSave allows you to access your money earlier, without needing to wait 30 days, but this is subject to a 30-day loss of interest.

You can receive a higher rate of 5.16% AER 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. Bear in mind that earlier access isn’t allowed, so you need to wait the full 45-day notice period before making a withdrawal.

DF Capital relaunched its 90 Day Notice Account (Issue 1) paying 5.30% AER monthly, which meant it displaced Investec Bank plc from the top of our 90 day notice charts. You can open this account from DF Capital with a minimum opening deposit of £1,000, and subsequently manage it online or by phone. As with Shawbrook Bank, earlier access isn’t allowed, so you won’t be able to receive your money before the end of the 90-day notice period.