Looking for the best high street interest rates?

Why it might be time to rethink your savings strategy

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If you’re looking for a competitive savings account, you’ve probably found yourself scouring the internet in search of the best high street interest rates. But what if we told you that even the best high street savings rates in the UK can be beaten? While the rates on savings accounts offered by familiar high street banks have dropped sharply over recent years, the partner banks and building societies at Raisin UK continue to help savers to boost their savings with competitive rates. 

So, where can you get the highest interest rate right now? On this page, we’ve listed the top rates for one, two, three and five year fixed rate bonds available through our marketplace and compared them to the current top rates at up to eight high street banks*. See how much more you could earn from your savings by looking beyond even the best high street fixed rate savings accounts and switching to Raisin UK.

Our best 1 year fixed rate bond is 5.22% AER

How we compare to high street banks:

Barclays - 4.45% AER

The Co-operative Bank - 4.53% AER

Nationwide - 4.50% AER

Santander - 3.93% / 4.05% AER

HSBC - 4.30% AER

Tesco Bank - 4.81% AER

Halifax - 4.35% AER

Lloyds - 4.35% AER

2 year fixed rate bonds

How we compare to high street banks:

The Co-operative Bank - 4.25% AER

Lloyds TSB - 4.00% AER

Halifax - 4.00% AER

HSBC - 4.00% AER

Santander - 3.54% / 3.65% AER

Tesco Bank - 4.50% AER

3 year fixed rate bonds

How we compare to high street banks:

The Co-operative Bank - 4.12% AER

Santander - 3.35% / 3.45% AER

Tesco Bank - 4.30% AER

5 year fixed rate bonds

How we compare to high street banks:

Tesco Bank - 4.00% AER

Halifax- 3.80% AER

The rates offered by Barclays, The Co-operative Bank, Halifax, HSBC, Lloyds TSB, Nationwide, Santander, or Tesco Bank that are displayed on this page are correct as of 12 June 2024. While we make efforts to update this page regularly, please be aware that the rates listed on this page may have changed since this page was last updated. Raisin UK does not offer financial advice; we provide a range of information to help you plan your own finances.



How to find the best high street interest rates

Whether you’ve got £1 or £1 million, it’s important to make the most of your savings – especially with inflation remaining high. In most cases, this usually means searching for an account with a competitive interest rate that meets your needs. 

Many people still look to well-known high street banks when searching for a savings account. If you do choose this route, a comparison tool can help you find the best high street interest rates available. The best high street savings account for you is usually the one that helps you meet your savings goals while offering a generous return on your investment. 

Before choosing a savings account for your cash, it’s important to do your own research. The key considerations outlined below contain important information that might help.

  • Will you need to access your money? 

  • How much interest will you earn?

  • Does the method of interest work for you?

  • Does the account have any restrictions on withdrawals?

  • Does the account have a minimum deposit requirement each month?

  • Will you need to pay tax on any interest earned?

  • Have you compared savings accounts from across the marketplace? 

Whether you’re looking for a fixed rate bond, notice account or an easy access savings account, these points can help you choose an account that suits your needs. Just bear in mind that the best high street bank interest rates may not be the most competitive.

The good news is that if you’re prepared to look beyond the familiar banks, you’ll find plenty of providers offering competitive interest rates across a wide range of savings accounts.

Does an interest rate difference of less than 1% really matter?

When comparing savings accounts, you might be wondering whether small variations in interest rates really matter. If you’re considering the best high street fixed rate bonds, for example, you might not think a difference of less than 1% can have a significant impact on your bank balance.

It might seem small, but it can make a big difference to how much you earn from your savings. In the example below**, you’ll see how depositing £10,000 into one, two, three and five year term fixed rate bonds with an illustrative rate difference of 0.50% AER makes a big difference to how much you’ll earn.

**
This example, using non-compounding rates, is purely illustrative and should not be viewed as indicative of the returns of any specific financial product or as financial advice. Please read individual product terms for the details of how interest is calculated and paid.

1 year term

0.50% AER = £50

1.00% AER = £100

Difference = £50

2 year term

0.50% AER = £100

1.00% AER = £200

Difference = £100

3 year term

0.50% AER = £150

1.00% AER = £300

Difference = £150

5 year term

0.50% AER = £250

1.00% AER = £500

Difference = £250

This example shows how even a seemingly small 0.50% variation in interest rates can make a big difference to your savings when you deposit £10,000. Imagine the potential impact if the interest rate or the amount of your deposit were higher. It’s worth considering these details when you’re exploring the best savings accounts in the UK, as even slight differences can have a significant impact on your financial goals.

Could you be earning more than the best high street savings rates?

Most likely, yes. Some high street banks pay as little as 0.01% on certain savings accounts, and it’s worth noting that alternative providers often outperform even the best savings rates on the high street. Switching to an alternative provider could be one of the best financial decisions you make.

Fixed rate bonds tend to offer the most competitive interest rates as they require you to lock your money away, typically for one, two, three or five years. Even then, the best high street interest rates may pale in comparison to those offered by alternative providers. You can see from our comparison, for instance, that the best high street 1 year fixed rate bonds often cannot beat the top rate from a Raisin UK provider. It’s worth comparing accounts to maximise the interest on your savings and find the best savings account for you.

Register for a Raisin UK Account and grow your savings

If you want to apply for fixed rate bonds like the ones covered in this page, and gain access to exclusive savings accounts, rates and offers, register for a free Raisin UK Account today. It’s free to register online and only takes a few minutes, after which you won’t need to fill in another application form to apply for a savings account through our marketplace again.