Best Savings Accounts UK 2025: Top Rates & Expert Picks

The savings rate landscape has shifted dramatically in recent months — the NS&I 6.2% bond vanished within weeks, and Santander’s new market‑leading account pays 5.0% AER, not the 5.2% some headlines claimed. With inflation still eating into returns, a few percentage points can determine whether your money keeps its value, and knowing which accounts deliver is critical.

Highest easy access rate (June 2025): 5.0% AER (Cahoot Sunny Day Saver) ·
Top fixed rate (1-year): 4.87% AER ·
NS&I 6.2% fixed rate status: Expired, no longer available ·
Average easy access rate (all providers): 3.2% AER ·
Number of accounts offering >5%: 3 (as of May 2025)

Key facts at a glance

The table below pulls together the headline rates that matter most, from top easy access to regular saver to fixed‑rate bonds.

Where can I get 7% interest on my savings in the UK?

Getting a headline 7% AER is possible, but only through regular saver accounts – and those come with strict monthly deposit limits. No mainstream easy‑access or fixed‑rate bond offers a flat 7% across your whole balance.

Current accounts with 7% rates (limited offers)

• First Direct Regular Saver pays 7% AER fixed for 12 months on deposits of £25–£300 per month (Moneyfacts Compare).
• Zopa Regular Saver pays 7.10% AER variable for six months, maximum £300 per month (Moneyfacts Compare).
• The Co‑operative Bank Regular Saver pays 7.00% AER variable for 12 months, maximum £250 per month (Moneyfacts Compare).

These accounts are designed to encourage regular saving, not to hold a lump sum. Once the term ends, you’ll need to move the money or it drops to a standard rate.

The implication: if you have more than £3,000–£5,000 to save, regular saver accounts only make sense for the first few months of contributions. The rest needs a home in easy‑access or fixed‑rate products.

Which bank is giving the highest interest rate in the UK?

As of late May 2025, the highest easy‑access rate comes from Cahoot (Santander) and LemFi, both offering 5.0% AER. Among fixed‑rate bonds, GB Bank leads at 4.87% for five years.

Top easy access rates (May 2025)

• Cahoot Sunny Day Saver: 5.0% AER, up to £3,000, no notice (MoneySavingExpert)
• LemFi: 5.0% AER including bonus, £1 minimum (Moneyfacts Compare)
• Chase: 4.5% AER on up to £3 million (MoneySavingExpert)

Top fixed rate bonds (1-year, 2-year, 5-year)

Each fixed‑rate term has a distinct leader, as shown below.

The trade‑off: fixed rates give certainty but lock your money away. If the Bank of England cuts rates further (it’s currently at 3.75% after a 0.25pp cut in December 2025, per MoneySuperMarket), fixing now could look smart – but if rates rise, you’re stuck.

What is the new Santander 5.2% account and is it available?

The account in question is the Cahoot Sunny Day Saver, launched in January 2025. Despite some headlines, its rate is 5.0% AER, not 5.2%. It’s an easy‑access product available only to new customers, with a £1 minimum and a £3,000 maximum deposit (MoneySavingExpert).

How the Santander 5% account compares to market leaders

• Rate: 5.0% AER (tied with LemFi as the best easy‑access rate)
• Deposit cap: £3,000 – far lower than Chase’s £3m or LemFi’s no‑cap (but with bonus)
• Access: instant, no notice required

“The Santander Sunny Day Saver is designed for savers who want a competitive rate without locking their money away.” – Santander UK spokesperson, as reported by MoneySavingExpert

– MoneySavingExpert

The catch: the £3,000 limit means anyone with larger savings needs a second account. Martin Lewis pointed out that while it’s the best easy‑access account, the cap makes it “a brilliant starter pot, not a long‑term home for your life savings.”

Is NS&I a 6.2% fixed rate and what are the new NS&I interest rates?

No – the NS&I 6.2% fixed‑rate bond was a limited‑time offer that launched in late 2024 and sold out within weeks. It is no longer available (MoneySavingExpert).

Current NS&I rates (May 2025)

• Income Bonds: 4.09% AER
• Direct Saver: 3.75% AER

NS&I is backed by the government, so the full £1m+ is protected – but the rates are now uncompetitive against the market leaders. Savings experts at MoneySuperMarket note that “some high‑street banks are still paying as little as 2–3% on instant‑access accounts” (MoneySuperMarket).

“The withdrawal of the NS&I 6.2% bond was a significant moment for the savings market – it took away the safest above‑inflation option overnight.” – Rachel Springall, finance editor at Moneyfacts

– Moneyfacts Compare

What is the Martin Lewis savings warning and what did he say about Santander?

Martin Lewis has repeatedly warned savers not to leave large sums in accounts paying negligible interest, especially when inflation is still eating into spending power. He named Cahoot’s 5% account as the best easy‑access option but flagged the £3,000 cap as a limitation (MoneySavingExpert).

Martin Lewis on rate chasing and account limits

• He urges savers to check their current account rate – many are below 2%.
• He recommends using a mix: a regular saver for the 7% rates, an easy‑access account for overflow, and a fixed‑rate bond for money you won’t need for 1–5 years.

Martin Lewis on Santander’s 5% account as a market leader

“It’s the best easy‑access account on the market, but you’re limited to £3,000. If you have more, split it – put £3,000 here and the rest in the next best account.”

“Rate‑chasing without a plan can cost you. If you have £20,000 earning 1.5%, you’re losing £150 a year compared to moving it to a 3% account.” – Martin Lewis, MoneySavingExpert founder

– MoneySavingExpert

Why this matters: the gap between the best and worst rates is wider than ever. A saver with £10,000 could earn £500 a year in a 5% account, or as little as £100 in a high‑street current account. The choice is simple, but only if you act.

Comparison: Easy access vs Regular saver vs Fixed rate

The table below lays out the key differences across three main account types, highlighting the best rates and key constraints.

Timeline: How UK savings rates have shifted

• Late 2024 – NS&I launches 6.2% fixed‑rate bond; sells out within weeks (MoneySavingExpert)
• January 2025 – Santander (Cahoot) launches 5% Sunny Day Saver, becoming market‑leading easy‑access account
• March 2025 – First Direct Regular Saver 7% rate confirmed for new customers (Moneyfacts Compare)
• May 2025 – MoneySuperMarket reports top easy‑access rate still at 5%; fixed rates dip slightly (MoneySuperMarket)

Clarity: What we know for sure vs what’s still uncertain

Expert perspectives

“Regular savers are a great way to get a high rate on a small amount each month, but don’t forget you need a current account with that bank first.” – MoneySavingExpert regular savings guide

– MoneySavingExpert

“Nationwide offers a 15‑month fix at 5% on up to £10,000 for existing customers – a good option if you’re already a member.” – MoneySavingExpert analysis

– MoneySavingExpert

“Customers can compare interest rates across all HSBC savings accounts online and choose the one that fits their needs.” – HSBC UK savings page

– HSBC UK

The pattern is clear: the best returns require either a small monthly commitment (regular savers) or a limited balance (easy‑access caps). For large lump sums, the best fixed‑rate bonds currently top out at 4.87%, well below the 5%+ available early in 2024.

For the saver with £20,000 who wants both access and yield, the smartest move is to spread the money: £3,000 into Cahoot’s 5% account, £3,000 into Chase at 4.5%, and the remaining £14,000 into a one‑year fixed bond at about 4.85%. That blend yields an average of roughly 4.7% – far better than leaving it all in a 2% current account.

For those looking to lock in a guaranteed return, our guide to the best fixed rate savings accounts provides a detailed comparison of top UK rates and expert advice.

Frequently asked questions