Comparing and setting up savings accounts

Safe: All of our banks are FSCS protected (or the European equivalent), with your money secure at every stage

Competitive: Grow your savings quicker with competitive interest rates

Straightforward: No endless logins and paper application forms. Just a free, easy-to-use savings service

HomeSavings accounts > Compare savings accounts

Key takeaways
  • Account comparison: Comparing savings accounts will help you find the best interest rate and allow you to grow your savings faster

  • Opening an account: You’ll need to provide a few personal details when you open a savings account, along with proof of your address and ID

  • Choosing a bank: There are lots of different savings account providers – the best one for you depends on a variety of factors, including the interest rate and your savings goals

How to compare savings accounts

It’s important to compare savings accounts so you find the account that suits your needs and pays a competitive rate of interest. Amid the ongoing cost of living crisis, there’s never been a more important time to get the best savings rates you can. Not only will a higher interest rate allow you to grow your savings faster, but it can also help to mitigate the effects of inflation.

Thanks to recent increases in the Bank of England base rate, interest rates on savings accounts are now at the highest level for more than 10 years. Despite this, many people are still earning as little as 0.1% on their savings. However, if you shop around and compare savings accounts from a variety of providers, you should be able to find accounts that offer much higher rates.

What should you consider when you compare savings accounts?

There are a few important things to consider when comparing savings accounts, which are as follows:

  • Will this account allow me to access my money when I want or need to? If you’re happy to lock away your cash, a fixed rate bond might be a good option. However, if you’d like to be able to withdraw your money penalty-free, an easy access savings account may be more suitable
  • Will the interest rate on this account help me reach my savings goal? The best savings accounts will pay a competitive rate of interest
  • Is interest compounded? Accounts that pay compound interest can help you to grow your savings further
  • Are there any restrictions that I need to be aware of? For example, is there a limit on how much you can withdraw?
  • Is this bank covered by the Financial Services Compensation Scheme (FSCS) or a European equivalent?
  • Are the interest payments made in a way that works for me?
  • Are there any penalties or charges that I need to be aware of? If so, how do they compare to other providers?

Whatever your savings ambitions, it’s important to do a savings account comparison to make sure you get the right type of account and the best interest rate for you. You can compare savings account rates on fixed rate bonds, notice accounts and easy access savings accounts in the table above.

Find the best savings account interest rates

To find the best savings rates on the market, you’ll need to do your homework – don’t always assume your current provider will pay the most. There are plenty of comparison tables online that allow you to easily compare savings accounts from a range of banks in one place (or simply visit the table at the top of this page).

Generally speaking, the best savings rates are usually offered on fixed rate accounts that require you to lock away your cash for a set period (typically one year, two years, three years, five years or six months). The most competitive fixed rate account in our marketplace has an interest rate of 5.65% AER. However, before you open this type of account, it’s important to assess your budget plan and financial circumstances so you know that you can definitely afford to tie your money up.

If you’d rather not lock away your money, there are still plenty of notice accounts and easy access accounts that pay a competitive interest rate. You can learn more about how to find the best savings rates here.

Which is the best bank for savings accounts?

There are lots of different providers to choose from, so how do you know which is the best bank for savings accounts? Before you can answer this question, it’s important to understand your financial goals and what you hope to achieve with your savings account.

For instance, if you intend to start saving for retirement and can afford to lock away your money, the best banks will typically be those that offer high interest rates on long-term savings accounts like fixed rate bonds. If, however, you want to be able to dip into your savings whenever you like, you might want to look at banks that pay the best interest rates on easy access savings accounts.

While finding the best savings account interest rates is important, there are other factors to consider when making your decision. For example, is the interest paid in a way that works for you? Are there any other charges, fees or penalties you need to be aware of? Will your deposit be protected under the FSCS? What’s the bank’s customer service record like? All of these factors (and many more) can determine which is the best bank for savings accounts.

In reality, there’s not really one ‘best bank’ for savings accounts. When you compare savings accounts online you’ll probably that find lots of providers have something to offer, depending on your savings goals and financial circumstances.

For example, the best bank for fixed rate bonds might not necessarily be your first choice for an easy access savings account. This is another reason why it’s important to shop around and compare savings accounts from a range of different banks and building societies. This is also true if you’re searching for the best savings account for kids, as interest rates on children’s savings can also vary considerably.

At Raisin UK, we offer savings accounts from a range of partner banks registered in the UK and other European countries. For added reassurance, all of the accounts you’ll find in our marketplace are covered by the FSCS or European Deposit Guarantee Scheme (DGS).

Why a savings account from our marketplace might be right for you

Whether you’re new to saving or you already have a lump sum you want to put away, opening a savings account through Raisin UK is a great place to start. Some of the benefits of choosing a savings account from our marketplace include the following:

  • All of the savings accounts on our marketplace are free to open
  • Your savings deposits are protected
  • You’ll earn competitive interest rates
  • You can choose from a range of savings accounts
  • You can easily manage your savings online

Log in or register to explore the Raisin marketplace today and compare savings accounts from a range of providers.

How to open a savings account

Opening a savings account with most banks and building societies is usually straightforward.

Depending on the bank you choose, you may have the option to open your savings account in a branch, over the phone, by post, online or via a banking app. Not all of these options will be available for every provider (some savings accounts can only be opened online), so be sure to check the terms of the account before you apply.

When you open a savings account, you’ll need to provide some key information about yourself, including your full name, date of birth, address and contact telephone number. The bank will also want to see proof of ID (for example, a passport or driving licence) and proof of your address.

Once you’ve followed the instructions and agreed to the terms and conditions, you’ll then need to fund your account. How you do this depends on the type of savings account you have.

For example, fixed rate bonds require you to make one single lump deposit when you open the account, whereas most easy access saving accounts and notice accounts let you make additional deposits whenever you like. The minimum opening deposit can also vary between providers – some accounts can be opened with as little as £1, while others require you to deposit significantly more.

You can quickly and easily open savings accounts with competitive interest rates from a range of UK banks by registering for a Raisin UK Account. It’s free to open a Raisin UK Account and savings accounts through our marketplace, and once you’ve been approved, you just need to make your deposit and watch your savings grow.

For more information on how to open a savings account with Raisin UK, explore our quick start guide here.

How to close a savings account

Depending on your provider, you can usually close a savings account in a branch, over the phone, by post, online or via a banking app.

Bear in mind that if you have a fixed rate account, you may be charged a penalty or an early exit fee if you close the account before it matures. This is one of the reasons why it’s important to assess your budget plan and financial circumstances before applying for a savings account.

Compare savings accounts at Raisin UK

You can compare a range of high-interest savings accounts from our partner banks in our marketplace. Simply register for a Raisin UK Account (it’s free) to quickly and easily apply in a matter of minutes. If you have any questions, our UK-based customer services team will be happy to help.