Best rates available — July 2026
Easy Access (top rate)
5.55% AER*
Tembo HomeSaver (*requires Tembo mortgage; standard rate 4.55%)
Cash ISA (easy access)
4.00% AER
Moneybox Cash ISA (inc. 0.55% 12-month bonus; rate reduced 19 June 2026)
Regular Saver (top rate)
7.10% AER
Zopa Regular Saver (variable, requires Biscuit account)
Fixed Bond (1 year top rate)
4.62% AER
Kent Reliance (1-year fixed bond)
Bank of England Base Rate (held 18 June 2026)
3.75%
Next MPC decision: 30 July 2026. CPI inflation 2.8% (May 2026).
Quick summary for July 2026
| Bank Rate held at 3.75%: The Bank Rate was held at 3.75% at the June 2026 MPC meeting (18 June 2026). CPI inflation stands at 2.8% for the 12 months to May 2026, remaining above the 2% target. The next MPC decision is 30 July 2026. |
| Easy access is competitive: Tembo HomeSaver shows 5.55% AER but this requires taking a Tembo mortgage within 3 years — the standard rate is 4.55% AER. Chase Saver with Boosted Rate offers 4.50% AER for new customers. Both Tembo and Chase include introductory bonuses that revert after 12 months, so check the reversion rate. |
| Cash ISAs are worth considering now: The top easy access ISA rate is 4.00% AER (Moneybox, includes 12-month bonus; rate reduced 19 June 2026). From April 2027, the cash ISA allowance drops to £12,000 for under-65s. If you have not used your £20,000 allowance for 2026/27, now is the time to consider it. |
| Regular savers still lead on headline rate: Zopa leads at 7.10% AER (variable, most flexible). First Direct and Co-op Bank both pay 7.00% AER. Because you drip-feed deposits monthly rather than lump-sum, your effective return is roughly half the headline rate. Used alongside an easy access account, they add meaningful extra interest on top. |
| Fixed bonds offer certainty: Kent Reliance rates have risen this week: 4.62% AER (1-year) and 4.71% AER (2-year), up from 4.36% and 4.37% respectively. Chetwood Bank leads on 3-year and 5-year terms at 4.78% and 4.81% AER. Fixing makes sense if you believe rates could fall, but remember you have no access until the term ends. |
| FSCS limit update: The FSCS protection limit increased to £120,000 per person per institution (£240,000 for joint accounts). If you have savings above this with one provider, split them across two providers with separate banking licences. |
| ISA allowance change ahead: From 6 April 2027, the annual cash ISA allowance drops to £12,000 for those under 65. Those aged 65 and over retain the £20,000 limit. The current £20,000 allowance applies until 5 April 2027, so this tax year is worth maximising for eligible savers. |
The best savings rates in the UK right now range from 4.55% AER (standard easy access) to 7.10% AER on regular savers. Tembo HomeSaver shows 5.55% AER but the higher rate is only available to those who take out a Tembo mortgage within 3 years. The Bank of England held its base rate at 3.75% on 30 April 2026, meaning rates on savings accounts are holding steady but the direction of travel for the rest of 2026 is uncertain. This is not the moment to leave money sitting in a high-street current account paying under 1%.
This page covers the top rates across every major savings account type for July 2026, explains which type of account suits which situation, and shows you how to combine accounts to get more from your money. Rates are checked weekly against official provider pages and authoritative comparison sources.
What the Bank Rate hold means for savers
The Monetary Policy Committee voted 8-1 to hold the base rate at 3.75% on 30 April 2026. One member voted to increase it to 4.00%. CPI inflation has eased to 2.8% for the 12 months to April 2026, down from 3.3% in March. It remains above the Bank’s 2% target.
This matters for savers because: Variable rate accounts (easy access, notice, variable regular savers) track the Bank Rate directionally. A hold means no automatic change to these rates, but providers can still cut or raise them independently.
Fixed rate bonds lock in today’s rate regardless of what the Bank does next. If inflation stays elevated and the Bank is forced to raise rates later in 2026, people who fixed early may find themselves on below-market rates. If rates fall, fixing now protects your return.
The next MPC decision is 18 June 2026. It is worth reviewing your savings position before then, particularly if any of your accounts are on introductory bonuses that are due to expire.
Easy access savings accounts
Easy access accounts let you deposit and withdraw without notice or penalty, making them the right home for your emergency fund and any money you might need within the next few months.
The top rates currently available include a 12-month introductory bonus, which reverts to a lower standard rate after the first year. Always note the reversion rate and set a reminder to review before the bonus ends.
| Provider | Rate (AER) | Type | Key detail | Link |
|---|---|---|---|---|
| Tembo HomeSaver | 5.55% AER** | Easy access | Standard rate is 4.55% AER (variable) — 3% base + 1.55% 12-month bonus. The extra 1% (making 5.55% total) is only unlocked if you take a Tembo mortgage within 3 years. Unlimited withdrawals. FSCS protected. Manage via app. | Open account → |
| Chase Saver (Boosted Rate) | 4.50% | Easy access | Includes 2.25% AER 12-month bonus on top of standard saver rate. New Chase current account customers only, available in first 31 days of opening. Interest paid monthly. FSCS protected. | Open account → |
| Cahoot Sunny Day Saver | 5.00%* | Easy access (limited) | 5% AER (variable) on balances up to £3,000 only. No interest paid above £3,000. 12-month term, reverts to standard Cahoot rate after 12 months. Instant, penalty-free access. Manage in Online Banking. FSCS protected (Santander). | View account → |
| Hanley Economic BS | 4.00% | Limited access | Flat variable rate, no bonus to expire. £100 minimum, £300,000 maximum. Must be opened in branch. 2 penalty-free withdrawals per tax year — further withdrawals lose 60 days interest. Account is "Dual Access Saver Issue 3". FSCS protected. | View account → |
*Cahoot rate applies to first £3,000 only. **Tembo 5.55% requires taking a Tembo mortgage within 3 years; standard rate is 4.55% AER. Rates sourced from provider pages, verified 10 July 2026. Always confirm on the provider's site before applying.
Bonus or flat rate? Know what you are choosing.
Accounts with a 12-month introductory bonus often headline the best rate tables. They are worth taking, but set a reminder for month 11 to review the market. The reversion rate once the bonus ends is usually significantly lower. Hanley Economic BS offers a flat 4.00% with no bonus to expire, which may suit savers who prefer simplicity over chasing the headline rate. Note: this account must be opened in branch.
Cash ISAs
A Cash ISA is a savings account where all interest is earned free of income tax. The annual allowance for 2026/27 is £20,000 per person.
Cash ISAs became particularly important as savings rates rose, because more savers began exceeding their Personal Savings Allowance (£1,000 per year for basic rate taxpayers, £500 for higher rate taxpayers, nil for additional rate taxpayers). Once you exceed your PSA, interest is taxable. Keeping savings in a Cash ISA shields all interest from this, regardless of your tax position.
ISA allowance cut incoming: act before April 2027.
From 6 April 2027, the annual cash ISA allowance drops from £20,000 to £12,000 for those under 65. Those aged 65 and over retain the £20,000 limit. The current £20,000 allowance applies until 5 April 2027. If you have not yet used your full 2026/27 allowance, consider doing so before the higher limit disappears. Money already inside a Cash ISA is not affected by the change and remains sheltered from tax indefinitely.
| Provider | Rate (AER) | Type | Key detail | Link |
|---|---|---|---|---|
| Moneybox | 4.00% | Easy access ISA | Includes 0.55% AER 12-month bonus. Rate reduced 19 June 2026 from 4.75%. Rate confirmed at 4.00% for transfers in as well as new deposits. Up to 3 withdrawals per year without impacting rate — making a 4th withdrawal drops to lower rate for the rest of the year. £500 minimum. FSCS protected. | Open ISA → |
| Bank of Ireland UK | 4.21% | Easy access ISA | Straightforward easy access ISA from a recognised name. No unusual withdrawal restrictions. FSCS protected. Rate confirmed 27 June 2026. | View account → |
| Vanquis Bank | 4.20% | 1-year fixed ISA | Top rate for 1-year fixed cash ISA. No withdrawals during the fixed term. FSCS protected. Confirm minimum deposit and funding window before applying. | View ISA → |
| Secure Trust Bank | 4.73% | Fixed ISA | Rate confirmed 27 June 2026. Verify term before publishing as product range may have changed. FSCS protected. | View ISA → |
| Trading 212 | 3.60% | Easy access ISA | 3.60% AER (variable). Flexible ISA — withdraw and replace in the same tax year without losing allowance. £1 minimum. FSCS protected. | Open Cash ISA → |
Rates sourced from Moneyfacts and MSE, verified 10 July 2026. Always confirm on the provider's site before applying.
Do you need a Cash ISA? Here is how to check.
Basic rate taxpayers can earn £1,000 in interest per year before paying tax. At 4.50% AER, that means a pot of roughly £22,200 would generate £1,000 in annual interest. If your total savings across all accounts are approaching or above that level, a Cash ISA becomes important. Higher rate taxpayers have a PSA of only £500, so the threshold at which an ISA makes sense is much lower. Additional rate taxpayers have no PSA at all, meaning all interest is taxable from the first pound.
Important: Changes to savings tax and the ISA allowance from April 2027
Two significant changes are coming in April 2027 that make the case for using your Cash ISA allowance now stronger than ever.
1. The Cash ISA allowance is being cut
For savers under 65, the annual Cash ISA allowance will fall from £20,000 to £12,000 from April 2027. Savers aged 65 and over retain the £20,000 allowance. The 2026/27 tax year is the last opportunity for under-65s to shelter up to £20,000 in a Cash ISA in a single year. Money already inside your ISA is not affected by this change.
2. Savings interest outside the ISA wrapper will be taxed at higher rates
From 6 April 2027, income tax rates on savings interest earned outside an ISA will rise by 2 percentage points. Basic rate taxpayers will pay 22% (up from 20%), higher rate taxpayers will pay 42% (up from 40%), and additional rate taxpayers will pay 47% (up from 45%). Interest earned inside a Cash ISA remains completely tax-free. The ISA wrapper is not being taxed.
What this means for you
If you have savings outside an ISA earning interest, the tax cost of keeping money unwrapped is going up. Filling your Cash ISA before April 2027 locks in the full £20,000 allowance and shelters that interest from higher rates going forward.
If you are saving towards a first home or retirement and are aged 18 to 39, a Lifetime ISA also keeps your interest tax-free and adds a 25% government bonus on contributions. Read the LISA series here.
Note: The increase to savings tax rates is confirmed in HMRC’s technical note published on gov.uk following the Autumn Budget 2025. Separate proposals relating to cash held within Stocks and Shares ISAs are not yet law. All details remain subject to final legislation.
Lifetime ISA (LISA): the 25% government bonus explained
LISA: the key rules at a glance
You must be aged 18 to 39 to open a Lifetime ISA. You can contribute up to £4,000 per year (which counts toward your overall £20,000 ISA allowance). The 25% government bonus is paid monthly, once contributions have been made. You can use the LISA for two purposes only: buying your first home (property must be worth £450,000 or under) or retirement withdrawal from age 60. If you withdraw for any other reason, you pay a 25% government penalty on the full withdrawal amount, which means you get back less than you put in. The LISA is separate from your standard Cash ISA but both can be held in the same tax year.
Cash LISA rates: July 2026
| Provider | Rate (AER) | Key detail | Link |
|---|---|---|---|
| Moneybox | 4.45% AER | Verified moneyboxapp.com 10 July 2026. Rate decreased from 5.80% to 4.45% AER variable (2.80% base + 1.65% fixed 12-month bonus; previously 3.00% bonus). After first 12 months: 2.80% AER. Managed via app only. Transfers from other LISAs accepted. FSCS protected. | Open LISA → |
| Tembo | 4.30% AER | Includes 12-month new customer bonus of 0.50%. Variable rate after bonus period. Strong option if you plan to use Tembo's mortgage service for your first home purchase. FSCS protected via partner banks. | Open LISA → |
| Plum | 4.06% AER | Includes 0.95% bonus if kept for 12 consecutive months. Variable rate. Managed via the Plum app. Useful if you already use Plum for budgeting or savings. FSCS protected. | Open LISA → |
Rates sourced from Moneyfacts, verified 10 July 2026. Always confirm on the provider's site before applying.
Is a LISA right for you? Read the full guide first.
The LISA is one of the most misunderstood savings products in the UK. The 25% withdrawal penalty for non-qualifying withdrawals means the rules matter enormously before you commit. Our dedicated LISA series covers eligibility in full, how the bonus is calculated, how the property limit works, the difference between a cash LISA and a stocks and shares LISA, and what changes when you turn 40 or 50. Read the complete guide here: The Lifetime ISA: Your Complete Guide.
Regular savers
Regular saver accounts pay the highest headline rates in the savings market, currently up to 7.00% AER. The trade-off is that you can only deposit a fixed amount per month, you typically need a linked current account with the same provider, and most accounts last for 12 months before the rate drops.
Because you are depositing monthly rather than placing a lump sum on day one, your effective return is roughly half the headline rate. Depositing £300 per month at 7.00% for 12 months earns approximately £136 in interest. That is still meaningful and well above what an equivalent amount drip-fed into an easy access account would earn.
How the drip-feed method works
The most effective way to use a regular saver is to pair it with an easy access account:
Keep your lump sum in the top-paying easy access account, earning interest on the full amount from day one. Each month, transfer the maximum allowed into your regular saver. This way, your money is earning 4.50% to 4.75% AER in easy access while also feeding into the 7.00% regular saver each month. Over 12 months, the blended return on the regular saver deposits is materially higher than leaving them all in easy access.
Use the interactive calculator further down this page to model your exact numbers.
| Provider | Rate (AER) | Monthly limit | Key detail | Link |
|---|---|---|---|---|
| Zopa Regular Saver | 7.10% | Up to £300 | Variable rate. Requires Zopa Biscuit current account. No mandatory monthly deposit. Most flexible regular saver on the market. Monitor for rate changes. | View account → |
| First Direct | 7.00% | £25 to £300 | Fixed rate for 12 months. Requires First Direct 1st Account. No withdrawals permitted during the term. Strong option if you are already a First Direct customer or switching to them for the bank switching bonus. | View account → |
| Co-operative Bank | 7.00% | Up to £250 | Variable rate. Requires Co-op Bank current account. Withdrawals are permitted. Monitor for rate changes as this is not fixed. | View account → |
| Nationwide Flex Regular Saver | 6.50% | Up to £200 | Variable rate. Requires any Nationwide current account. Up to 3 withdrawals permitted without penalty. Available to most Nationwide customers without switching. | View account → |
| Lloyds Club Lloyds Monthly Saver | 6.25% | Up to £400 | 6.25% AER/gross fixed for 12 months. Requires Club Lloyds or Lloyds Premier current account. Unlimited withdrawals. Interest paid after 12 months. £25 minimum monthly deposit. | View account → |
Rates sourced from Moneyfacts and provider pages, verified 10 July 2026. Always confirm on the provider's site before applying.
The effective rate is roughly half the headline. That is still worth having.
At 7.00% AER with a £300 monthly cap, you deposit a total of £3,600 over 12 months and earn roughly £136 in interest. That works out to an effective annual rate of about 3.8% on the deposited amount. Combined with the interest your lump sum earns in easy access while the drip-feed is running, the overall return on that money is meaningfully higher than easy access alone. Use the calculator below to model your specific numbers.
Fixed rate bonds
Fixed rate bonds lock your money away for a set period, typically 1 to 5 years, in exchange for a guaranteed rate that will not change for the full term regardless of what the Bank Rate does. They are best suited to money you are confident you will not need before the term ends.
There are no withdrawals in most fixed bonds. If you need the money early, access is either impossible or comes with a significant penalty (typically 90 to 180 days of lost interest). Always make sure you have enough in easy access accounts to cover any foreseeable needs before locking money into a fixed bond.
Is now a good time to fix?
| Provider | Rate (AER) | Term | Key detail | Link |
|---|---|---|---|---|
| Kent Reliance | 4.62% | 1 year | £1,000 minimum. Open online. Interest paid monthly or on anniversary. FSCS protected. No withdrawals until maturity. Rate increased from 4.36% AER. Verified 3 July 2026. Note: issue number on the product page shows as Issue 32 (previously Issue 36 in our records). Confirm issue reference on the Kent Reliance page before publishing. | View bond → |
| AlRayan Bank | 4.65% | 1 year | Sharia-compliant expected profit rate. £1,000 minimum. Good alternative for savers seeking ethical or Islamic banking. FSCS protected. Rate confirmed 27 June 2026. | View bond → |
| Kent Reliance | 4.71% | 2 years | £1,000 minimum. Open online. Interest paid monthly or on anniversary. FSCS protected. No withdrawals until maturity. Rate increased from 4.37% AER. Verified 3 July 2026. Note: issue number on the product page shows as Issue 39 (previously Issue 43 in our records). Confirm issue reference on the Kent Reliance page before publishing. | View bond → |
| Chetwood Bank | 4.78% | 3 years | £1,000 minimum. 14-day funding window from opening. Interest paid on anniversary. FSCS protected via SmartSave brand. No withdrawals until maturity. Rate confirmed 27 June 2026. | View bond → |
| Chetwood Bank | 4.81% | 5 years | £1,000 minimum. 14-day funding window from opening. Interest paid on anniversary. FSCS protected via SmartSave brand. No withdrawals until maturity. Rate confirmed 27 June 2026. | View bond → |
Rates sourced from Moneyfacts and provider pages. Kent Reliance rates verified 10 July 2026. Chetwood Bank rates verified 27 June 2026. Always confirm on the provider's site before applying.
Set a maturity reminder before you open the bond.
When a fixed bond matures, the money typically moves into a holding account earning little or no interest until you act. Set a calendar reminder for one month before maturity. At that point, compare the market and either reinvest into a new fixed bond or move to the top easy access rate. Doing nothing after maturity is the most common and most costly savings mistake.
Notice accounts
If you have already triggered the money purchase annual allowance, there are still steps you can take to manage the situation effectively.
| Provider | Rate (AER) | Notice period | Key detail | Link |
|---|---|---|---|---|
| Vida Bank (via Prosper) | Unconfirmed | 95 days | £10,000 minimum, £120,000 maximum. FSCS protected. Access only by giving full 95 days notice. Last known: 4.20% AER. Note: Prosper platform is not currently listing this product. Confirm availability and rate directly with Vida Bank before publishing. | View account → |
| Vida Bank (via Prosper) | 4.17% | 45 days | £10,000 minimum, £120,000 maximum. FSCS protected. More flexibility than the 95-day option. Rate confirmed 27 June 2026. Note: Prosper platform may not list this product — confirm availability before recommending. | View account → |
| RCI Bank E-Volve | 4.00% | 14 days | Variable rate. Interest paid monthly. £100 minimum deposit. Open and manage online. FSCS protected. Most accessible of the notice account options. Rate confirmed 27 June 2026. | View account → |
| Oxbury Bank | Confirm | 120 days | Variable rate. £1,000 minimum. Open online. FSCS protected. Highest notice period on this list. Rate not verified this week — last known: 4.11% AER. | View account → |
Rates sourced from Moneyfacts, MSE, and provider pages, verified 10 July 2026. Always confirm on the provider's site before applying.
Notice accounts suit a layered savings approach.
A practical structure for larger pots: keep 3 months of expenses in an easy access account for genuine emergencies, move the next tier of savings into a 30 to 45 day notice account for slightly better rates, and park money you will not need for 3 or more months in a 90 to 120 day notice account or a fixed bond. This layering earns more overall while keeping some flexibility.
FSCS protection: what has changed and what it means for you
The Financial Services Compensation Scheme limit increased to £120,000 per person per authorised institution, up from £85,000. For joint accounts, the limit is £240,000.
This is important for anyone with significant savings across multiple accounts. Key points:
Several banks share the same banking licence. HSBC and First Direct, for example, operate under the same licence, meaning your combined savings across both count as one for FSCS purposes. Check before splitting savings between brands you assume are separate.
If your total savings with any one institution (accounting for shared licences) exceed £120,000, move the excess to a provider with a different banking licence.
FSCS protection applies to the main UK-regulated banks and building societies. Some newer fintech platforms operate differently, check the FSCS status of any provider before depositing large sums.
Check shared banking licences before splitting savings.
Common brands sharing a single banking licence: HSBC and First Direct. Halifax, Lloyds, and Bank of Scotland. NatWest, RBS, and Ulster Bank. Virgin Money and Nationwide (Virgin Money transferred to Nationwide on 2 April 2026; combined deposits now share one £120,000 FSCS limit). Saving across two brands within the same group does not give you double FSCS protection. Check at the FSCS website if you are unsure about a specific provider.
Quick picks by situation
For your emergency fund
Easy access, no fixed term, unlimited withdrawals. Keep 3 to 6 months of expenses here. Never lock emergency fund money into a fixed bond or notice account.
For tax-free savings (near or over your PSA)
Maximise your £20,000 Cash ISA allowance before it drops to £12,000 for under-65s in April 2027. Top easy access ISA rate is 4.00% AER (Moneybox, inc. 12-month bonus - rate reduced 19 June 2026).
For monthly savers (drip-feeding new money)
Park your lump sum in a top easy access account and drip-feed the monthly maximum into a regular saver. The combination earns more than easy access alone.
For money you will not need for 1 to 2 years
Fix at today's rate to protect against any future falls. No access until maturity so only use money you are certain about. Kent Reliance rates have risen this week. Confirm current rates before applying.
Kent Reliance 4.62% (1yr) / 4.71% (2yr) → AlRayan Bank 4.65% (1yr) →
For money you might need in 3 to 6 months
Notice accounts earn more than easy access without locking you away completely. Give notice early, not when you need the money. Confirm current rates before applying.
Provider links and details
The section below gives direct links and key details for every provider mentioned on this page. Use the filter tabs to view by account type.
Provider links and details
All providers featured on this page. Use the filter tabs to view by account type. Rates verified 10 July 2026.
Set a maturity reminder before you open
Applies to fixed bonds and bonus rate accounts
Fixed bonds and 12-month bonus rates revert to a much lower rate when they expire. Set a calendar reminder for one month before that date. At that point, compare the market and reinvest or move to the top easy access rate. Doing nothing at maturity is the most common and costly savings mistake.
Tembo, HomeSaver
5.55% AER 4.55% standard rate (without Tembo mortgage)
3.00% variable base rate plus 1.55% fixed 12-month introductory bonus = 4.55% standard rate. £10 minimum, up to £20,000. Unlimited withdrawals. App only. Set a reminder for month 11 as the bonus expires after 12 months. FSCS protected.
Chase, Saver, Boosted Rate
4.50% AER
12-month bonus for new Chase customers only
Requires a Chase current account. Available to new Chase customers in their first 31 days only. Includes 2.25% 12-month bonus. £25,000 daily transfer limit. Interest paid monthly. Reverts to tracker rate after 12 months. FSCS protected.
Cahoot, Sunny Day Saver
5.00% AER*
*On first £3,000 only for 12 months
Best for smaller balances. 5% applies to the first £3,000 only. Money above earns the standard variable rate. Reverts after 12 months. Instant, penalty-free access. Manage in Online Banking. FSCS protected via Santander.
Hanley Economic BS, Dual Access
4.00% AER
Flat rate, no bonus to expire
£100 minimum. 2 penalty-free withdrawals per tax year. Further withdrawals lose 60 days interest. Good for savers who want simplicity without chasing bonus rates. Branch-only product, confirm the live rate before applying. FSCS protected.
Chip, Instant Access
Tracks Bank Rate. Occasional new customer boosts.
Underlying rate tracks the Bank of England base rate. Promotional boosts appear periodically for new customers. Confirm live rate and current terms before applying. FSCS protected.
Trading 212, Cash ISA
3.60% AER
Standard rate. New customer bonuses available. Flexible ISA.
Standard rate is 3.60% AER; new customers via promotional links may get up to 4.76% AER including a 12-month bonus. After any bonus, tracks Bank of England rate minus 0.15%. Flexible ISA: withdraw and replace in the same tax year without losing allowance. No minimum. FSCS protected.
Moneybox, Cash ISA
4.00% AER
Best rate for ISA transfers. Note withdrawal rules.
Best choice for transferring an existing ISA. Rate reduced to 4.00% AER (effective 19 June 2026); includes a 0.55% 12-month bonus (underlying rate 3.45% AER). Rate reduces after 3 withdrawals in the same tax year. FSCS protected.
Bank of Ireland UK, Online ISA
4.21% AER
Recognised name. Includes 12-month bonus. £100 minimum.
Easy access Cash ISA from a regulated UK bank. Includes a fixed bonus of 3.31% for the first 12 months, after which the rate drops significantly. Set a reminder for month 11 to review. No unusual withdrawal restrictions. Managed via their Online ISA portal. FSCS protected.
Vanquis Bank, 1 Year Fixed Cash ISA
4.20% AER
Strong 1-year fixed ISA rate. No access during term.
Rate confirmed on the Vanquis site as of June 2026. No withdrawals during the fixed term; early transfer costs 90 days of interest. £1,000 minimum, fund within 30 days. FSCS protected.
Secure Trust Bank, 2 Year Fixed Cash ISA
4.73% AER
Market leader for 2-year fixed ISA. No access during term.
Current top rate for a 2-year fixed Cash ISA as of June 2026. No withdrawals for the full 2-year term. Confirm minimum deposit and funding window before applying. FSCS protected.
Moneybox, Cash Lifetime ISA
4.45% AER
Top cash LISA rate. Plus 25% government bonus.
Top cash LISA rate as of 10 July 2026. Rate decreased from 5.80% to 4.45% AER (verified 10 July 2026). Includes 2.80% variable base rate plus a fixed one-year bonus of 1.65% AER. After first 12 months: 2.80% AER. App only. Transfers from other LISAs accepted. Open aged 18 to 39. Government adds 25% bonus on contributions up to £4,000 per year. FSCS protected.
Tembo, Cash Lifetime ISA
4.30% AER
Includes 12-month bonus. Good for first-time buyers.
Includes a 0.50% fixed 12-month new customer bonus. Variable rate after bonus period. Particularly useful if you plan to use Tembo's mortgage brokerage for your first home purchase. Open aged 18 to 39. Government adds 25% bonus up to £1,000 per year. FSCS protected.
Plum, Cash Lifetime ISA
4.06% AER
Includes 12-month bonus. Good if you already use Plum.
Includes 0.95% bonus if kept for 12 consecutive months. Variable rate. Managed via the Plum app. Good option if you already use Plum for budgeting or savings. Open aged 18 to 39. Government adds 25% bonus up to £1,000 per year. Confirm the live rate as Plum runs periodic promotions. FSCS protected.
Zopa, Regular Saver
7.10% AER
Most flexible. Up to £300/month. No mandatory deposit.
Variable rate. Requires a Zopa Biscuit current account. No mandatory monthly deposit, making this the most flexible regular saver on the market. Monitor for rate changes. FSCS protected.
First Direct, Regular Saver
7.00% AER
Fixed 12 months. £25 to £300/month. No withdrawals.
Fixed rate for 12 months. Requires a First Direct 1st Account. No withdrawals during the term. Strong option if you are switching to First Direct for the £175 bank switching bonus (plus £25 extra for accounts opened by 15 July 2026 — only 5 days away). Open this account after your current account is live. FSCS protected.
Co-operative Bank, Regular Saver
7.00% AER
Variable. Up to £250/month. Withdrawals permitted.
Variable rate so monitor for changes. Requires a Co-op Bank current account. Withdrawals are permitted during the term, unlike First Direct. Good if you want the high rate but may need occasional access. FSCS protected.
Nationwide, Flex Regular Saver
6.50% AER
Variable. Up to £200/month. Up to 3 withdrawals.
Variable rate. Available to any Nationwide current account holder. Up to 3 withdrawals permitted without penalty. One of the most accessible regular savers, no need to switch banks if you already bank with Nationwide. FSCS protected.
Lloyds, Club Lloyds Monthly Saver
6.25% AER
Fixed 12 months. Up to £400/month. No withdrawal restrictions.
Fixed rate for 12 months. Requires a Club Lloyds or Lloyds Premier current account. No withdrawal restrictions. Highest monthly deposit cap on this page at £400, making it the best option if you want to save more than £300 per month. FSCS protected.
Virgin Money (now Nationwide), Regular Saver Exclusive
Check live issue. Around 6.5% AER. Up to £250/month.
Requires a Virgin Money personal current account. Rate and terms vary by issue. Check the current issue end date and whether the rate is fixed before applying. FSCS protected (shared licence with Nationwide, see note above).
Kent Reliance, 1 Year Fixed Bond
4.62% AER
Rate up from 4.36% this week (Issue 32). Verify issue on site.
Verified on the Kent Reliance site 3 July 2026. Rate increased from 4.36% AER. Issue now shows as Issue 32. £1,000 minimum. Interest paid monthly or on anniversary. No withdrawals until maturity. FSCS protected. Set a maturity reminder immediately.
AlRayan Bank, 1 Year Fixed Bond
4.65% AER
Top 1-year rate on this page. Sharia-compliant.
Sharia-compliant expected profit rate. Rate confirmed 27 June 2026. £1,000 minimum. No withdrawals during the term. FSCS protected. Good ethical banking alternative.
Kent Reliance, 2 Year Fixed Bond
4.71% AER
Rate up from 4.37% this week (Issue 39). Verify issue on site.
Verified on the Kent Reliance site 3 July 2026. Rate increased from 4.37% AER. Issue now shows as Issue 39. Same terms as the 1-year bond. Interest paid monthly or annually. No withdrawals until maturity. FSCS protected.
Chetwood Bank, 3 Year Fixed Bond
4.78% AER
Top 3-year rate. Confirmed 27 June 2026.
Verified on the Chetwood Bank site 27 June 2026. £1,000 minimum. 14-day funding window. Interest on anniversary. No withdrawals until maturity. FSCS protected via SmartSave brand.
Chetwood Bank, 5 Year Fixed Bond
4.81% AER
Highest fixed rate available. Only if certain you won't need access.
Verified on the Chetwood Bank site 27 June 2026. £1,000 minimum. 14-day funding window. No withdrawals for 5 years. Only suitable for money you will not need until 2031. FSCS protected via SmartSave. Set a maturity reminder immediately.
OakNorth, Fixed Term Bond
Consistently competitive. Confirm live AER before applying.
Strong rates across 1, 2, and 3-year terms. £1 minimum deposit. Straightforward online application. Check the live AER as OakNorth updates rates frequently. Good alternative if market leaders are at capacity. FSCS protected.
JN Bank, 2 and 3 Year Fixed Bond
Low £100 minimum. Confirm live AER before applying.
Open online, fund within the deposit window. No withdrawals during the term. Interest calculated daily, paid annually or at maturity. Confirm live AER as JN Bank updates rates regularly. FSCS protected.
Vida Bank (via Prosper), 95 Day Notice
Availability unconfirmed. Last known: 4.20% AER.
When available: £10,000 minimum, £120,000 maximum. Must give full 95 days notice before withdrawing. FSCS protected. Check getprosper.co.uk for current listing status.
Vida Bank (via Prosper), 45 Day Notice
4.17% AER
More flexibility than the 95-day option.
Rate confirmed 27 June 2026. £10,000 minimum, £120,000 maximum. Must give 45 days notice before withdrawing. Confirm the live rate and availability with Prosper before applying. FSCS protected.
RCI Bank, E-Volve 14 Day Notice
4.00% AER
Most accessible notice account. Only 14 days notice.
Variable rate, confirmed 27 June 2026. Interest paid monthly. £100 minimum. Open and manage online. Most flexible notice account on this page. FSCS protected.
Oxbury Bank, 120 Day Notice
Confirm live AER. £1,000 minimum. Last known: 4.11% AER.
Variable rate. £1,000 minimum. 120 days notice required before any withdrawal. Good for money set aside for a specific purpose 4 or more months away. Rate not verified this week; last known 4.11% AER. Confirm live AER before applying. FSCS protected.
Rates and eligibility change frequently. Always confirm the current AER, bonus period, reversion rate, withdrawal rules, funding window, and FSCS status on the provider's page before opening an account. This page is for information only and does not constitute financial advice. Rates verified 10 July 2026.
Inflation and the real return
With CPI inflation at 2.8% as of April 2026, real returns on cash savings are more meaningful than they have been for much of the past two years. The gap between the top easy-access rates and inflation is now positive for most savers, which is an improvement. However, that gap narrows quickly once tax is factored in.
A basic rate taxpayer earning 4.75% AER on easy access effectively earns around 3.80% after 20% tax, leaving a real return of roughly 1% above inflation. For higher rate taxpayers paying 40%, the after-tax return is closer to 2.85%, which is just above the inflation rate with very little headroom.
This makes two strategies particularly valuable right now. First, using a Cash ISA to shelter interest from tax entirely, so the full 4.75% (or higher) rate is the real return. Second, locking in a fixed rate or maximising a high-rate regular saver before rates move lower, which most analysts expect over 2026 as the Bank of England continues its cutting cycle.
Real returns are better than they look on paper when you use the right account type. The sections below explain how to combine accounts to make the most of the current rate environment. Office for National Statistics: inflation data
The drip-feed method (maximise return with minimal effort)
Why it works
Regular savers pay the highest rates available right now, with Zopa at 7.10% AER and First Direct and Co-op Bank both at 7.00%. The catch is that these accounts only accept new monthly contributions, typically capped at £300 to £500 per month. You cannot simply deposit a lump sum and earn the headline rate on all of it.
The drip-feed method solves this. You keep your lump sum in a competitive easy-access account earning a strong rate on the full balance, then move the monthly maximum into your regular saver each month. That blends the two rates across your total savings pot and lifts your overall return with almost no ongoing effort.
Set-up in 3 steps
- Park the lump sum in a strong easy-access account (or easy-access Cash ISA if tax efficiency matters to you). Tembo HomeSaver at 4.75% AER or Trading 212 Cash ISA at 4.62% AER are strong options right now.
- Open a regular saver and set a standing order for the monthly maximum. Zopa at 7.10% AER requires a free Zopa Biscuit account but has no mandatory deposit amount, giving you flexibility.
- Set a reminder in month 11 to decide what to do with the matured regular saver pot: roll into a new regular saver, move into a fixed bond, or return it to easy access.
Illustrative example (rounded figures)
- Lump sum: £10,000
- Easy access: 4.75% AER (Tembo HomeSaver)
- Regular saver: 7.10% AER (Zopa), £300 per month cap, 12 months
- All in easy access: approximately £475 interest over the year
- Drip-feed method: approximately £520 combined interest, around £45 more with the same money
- At a £500 per month cap: combined interest approximately £552, uplift approximately £77
The exact gain depends on the rate gap between your two accounts, the monthly cap, and whether rates change during the year. But the principle is consistent: use easy access for the pot, use the regular saver for the top rate on new money each month.
Tax tip: If your total interest could exceed your Personal Savings Allowance (see below), run the drip-feed through a Cash ISA on the easy-access side. Trading 212 at 4.62% AER and Moneybox at 4.33% AER both work well as the base account in this setup.
Tax-smart saving: PSA vs Cash ISAs
Most savers can earn a certain amount of interest each year completely free of tax through the Personal Savings Allowance (PSA). Basic rate taxpayers can earn up to £1,000 in interest tax-free. Higher rate taxpayers have a £500 allowance. Additional rate taxpayers (income above £125,140) have no allowance at all.
If your projected interest across all accounts could exceed your PSA, the most efficient move is to hold your lump sum inside an easy-access Cash ISA. All interest inside an ISA is tax-free, regardless of how much you earn, and it does not count towards your PSA. GOV.UK: tax-free interest on savings
If your Cash ISA is flexible, you can also withdraw and replace money within the same tax year without losing any of your annual allowance, as long as you do this with the same ISA provider.
Edge case worth knowing: If your non-savings income is low (for example, you work part-time or have a modest retirement income), you may also qualify for the Starting Rate for Savings. This gives you 0% tax on up to £5,000 of savings interest and sits alongside your PSA and ISA allowance. It is particularly useful for part-time earners and lower-income retirees.
For a deeper explanation of ISA benefits and worked examples: The Tax-Free Secret: Why an ISA Should Be in Your Financial Plan
Looking ahead: savings tax rates are rising in April 2027
From 6 April 2027, income tax rates on savings interest earned outside an ISA will rise by 2 percentage points. Basic rate taxpayers will pay 22% on savings interest (up from 20%), making the case for using your Cash ISA allowance now stronger than it has been in years. The Cash ISA allowance for under-65s also drops from £20,000 to £12,000 from April 2027. The 2026/27 tax year is the last opportunity to shelter up to £20,000. Interest inside a Cash ISA remains completely tax-free. See the full breakdown in the Cash ISA section below.
Savings calculators
Use these calculators to model your specific situation: how much interest a regular saver will earn, and how much extra the drip-feed method adds compared to keeping everything in easy access.
Frequently asked questions
Q: Is it worth switching savings accounts for a slightly higher rate?
Yes, if the difference is meaningful and the switch is straightforward. Moving £20,000 from a 3.00% account to a 4.50% account generates an extra £300 per year. Most savings accounts can be opened online in under 10 minutes. The effort-to-reward ratio is strongly in favour of switching.
Q: What happens if my savings exceed £120,000 with one provider?
Money above the £120,000 FSCS limit is not protected in the event the bank fails. Split the excess into an account at a provider with a different banking licence. Check the FSCS website for a list of which brands share licences.
Q: Should I fix now or wait to see what happens with interest rates?
There is no certainty either way. With inflation above the Bank's target and one MPC member already voting to raise rates, the next move could be up. Fixing now locks in the current rate and protects against any falls. It also means you miss out if rates rise. A practical approach: fix only the portion of savings you are confident you will not need, and keep the rest in a top easy access account to benefit from any rate changes.
Q: Are Cash ISAs worth it even if I do not pay tax on savings interest?
Yes, in two situations. First, if top Cash ISA rates are equal to or better than non-ISA easy access rates (which they are at the moment for some providers). Second, if your savings might grow to a level where you would exceed your PSA in future. Interest earned inside a Cash ISA is sheltered permanently, regardless of future tax changes.
Q: What is the FSCS limit now?
The Financial Services Compensation Scheme protects up to £120,000 per person per authorised institution, rising to £240,000 for joint accounts. This increased from the previous £85,000 limit. Note that several banks share a single banking licence, so always check before treating them as separate institutions.
Q: Can I have both a Cash ISA and a regular savings account at the same time?
Yes. You can hold multiple savings accounts across different providers simultaneously. The Cash ISA allowance (£20,000 for 2026/27) applies only to new contributions into ISA accounts, not to non-ISA savings. Using a Cash ISA and a regular saver at the same time is a common and effective combination.
Summary
With the Bank Rate held at 3.75% and inflation at 2.8%, savings rates remain competitive. The priority right now is to make sure your money is not sitting in a legacy account earning under 2% while the top easy-access rate is 4.75%.
The practical steps for most savers:
Check your current savings rates against the tables above. If you are more than 0.5% behind the top rate for your account type, it is worth switching.
Use your 2026/27 Cash ISA allowance before April 2027 if you are approaching or over your Personal Savings Allowance. The allowance drops to £12,000 for under-65s from next April.
Pair a top easy access account with a regular saver if you are saving monthly. The drip-feed approach earns more than easy access alone on new contributions.
Fix only the money you will not need before the term ends. Set a maturity reminder immediately.
This page is updated weekly. Bookmark it and check back for rate changes as providers adjust their offers.
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