Are you looking for ways to save money? If yes, then you should consider opening a savings account. In this article, we'll show you some of the best savings accounts that you can open today.

Savings accounts are a great way to build a financial portfolio. They offer low interest rates and allow you to earn interest on your deposits. The main drawback is that they don’t pay high returns nowadays so it can be tricky to find something with a reasonable interest rate.

However, there are several types of savings accounts that you can choose from. Some of them include fixed rate accounts, current accounts, easy access accounts and even cashback accounts. Of course these change over time so we will try to keep this blog up to date when changes are applicable. 

If you notice any accounts in our list are no longer relevant then please let us know in the comments at the bottom of the page and we will update this page accordingly.

1. The Cambridge Building Society (3 or 5%)

Cambridge Building Society has an excellent savings account that pays between 3-5%. Below are the following rules for the 5% account:

• to open an Extra Reward Regular Saver you must have held a savings or mortgage account with The Cambridge for at least three years
• the minimum amount required to open the account is £100
• save up to £3,000 (£250 per month)
• the overall maximum holding by any one person in respect of all accounts with The Cambridge is £2,000,000

For more info: https://www.cambridgebs.co.uk/savings/regular-savings/extra-reward-regular-saver#

The main caveat with the above savings account is that you must already have either a savings account or mortgage with Cambridge BS. Therefore the 3% account may be more applicable to most.

Rules for the 3% account:

• manage your account in branch, by phone or via post
• you can pay in cash and cheques and make debit card payments at any of our branches or you can transfer funds from an existing Cambridge Building Society account
• you may make as many deposits as you like each month, however the total of each monthly deposit must not exceed £250. There is no penalty for missing a month but you will lose your deposit allowance for that month
• to ensure payments count for the relevant month please make all deposits between the 1st and 25th of the month. Any payments that take your account over the maximum monthly balance will be returned to you in full and the method we return this by will be at our discretion
• you can view and amend your details online or via The Cambridge money app. Once registered you can also use our online services to manage your account

For more info: https://www.cambridgebs.co.uk/savings/regular-savings/reward-regular-saver

2. NatWest (3.25%)

NatWest has an interesting dynamic with the way they are calculating their interest. This is also a great saver for those who are just starting out and won't have a huge amount of funds. This is because the higher percentage of 3.25% is only applicable for the first £1000 in the account. The interest breakdown can be seen below:

Rules for the NatWest saver:

• Open your account and set up a monthly standing order between £1-£150 each month. You can even set yourself a goal to work towards with our Savings Goal Tool.
• Round Ups don't count towards your monthly limit, so you can top up your Digital Regular Saver with the spare change every time you spend on your debit card.
• You can change your standing order whenever you need to, or top-up your monthly contribution if you haven't already hit your £150 limit for the month.

For more info: https://www.natwest.com/savings/digital-regular-saver.html#box

3. Nationwide - Flex Regular Saver (2.5%)

Nationwide has one of the most competitive savings accounts out there. It offers 2.5% variable interest rate which means that every month you deposit more money into your account, you get paid more interest. This is perfect if you want to start building your savings with the added benefit of not being fixed into the account.

Nationwide states that this account allows 3 withdrawals during the 12 month account term without impacting your interest rate. So although your withdrawals are limited, you can still access your money in emergency situations.

For more info: https://www.nationwide.co.uk/savings/flex-regular-saver/

4. Saffron Building Society (2/1.75%)

Saffron Building Society has two different savings accounts available. They have a small saver and regular saver. 

The small saver offers a 2% AER however this account has a limit on monthly deposits. Your monthly deposits between £1 and £50 per calendar month. This account is great for those just trying to start building some savings however would not be as useful for people with a larger amount of funds.

Below are the rules for the small saver:

• Be a UK resident aged 16 or over
• You must deposit between £1 and £50 per calendar month
• Only hold one Small Saver or Regular Saver per customer (be it held in sole or joint names)

For more info: https://www.saffronbs.co.uk/savings/regular-savings-accounts/small-saver-issue-3

Their regular saver provides a 1.75% AER on balances over £50 fixed for 1 year. The rules for the regular saver

• Only hold one Regular Saver or Small Saver per customer (be it held in sole or joint name(s) with Saffron Building Society at a time
• This account is for members who have had an existing relationship with Saffron Building Society for the past 12 months*

For more info: https://www.saffronbs.co.uk/savings/regular-savings-accounts/12-month-fixed-rate-members-regular-saver-issue-9

5. Chip Easy Access Account powered by Allica Bank (0.90%)

The final savings account on our list is provided by Chip and powered by allica bank. They provide a 0.9% (Variable) rate on their easy access savings account and it's all packaged into a nice app. To open a savings account with chip it is as easy as downloading they're app.

We have included this specifically as this is the best account we can find that doesn't have a catch like the interest rate dropping after a year or only receiving the high interest on lower amounts of funds. Given this is an instant access savings account which is easy to setup, it makes a great choice.

Below are the rules for Chip:

• There are none! Simply download the Chip app and get started.

As the rate is variable it may change by the time you check out the savings account. To get an up to date figure along with other info check out:

https://getchip.uk/easy-access-offer/moneyfacts

Summary

So there you have it. We hope you found these 5 best savings accounts that earn higher than average interest rates helpful. If you enjoyed our blog post or found it helpful then please share on social media and if there are any issues you have found with this post then feel free to let us know through either the comment section below or contacting us through our contact page.

Thanks for Reading 😊

FAQ

What does AER mean?

The Annual Equivalent Rate (AER) is designed to make savings accounts easier to compare. The AER assumes that you keep your money in a particular savings account for a year, while taking more factors into account than the gross rate, which means it can show a truer picture. (moneyfacts.co.uk)

Is my money protected?

When opening a savings account it’s important to make sure that your money is protected by the Financial Services Compensation Scheme (FSCS). This is in place to protect savers and compensate savers if their chosen provider ceases trading and is unable to return their funds. (thetimes.co.uk)

What is a cash ISA?

A cash ISA is a savings account where you don't pay tax on the interest you earn (natwest.com)