What are the best high interest rates on savings accounts? How to make your money work for you
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Leaving all your spare cash in your current account is easy to do – but you’ll miss out on gains that can help you beat inflation. Financial life would be a lot easier if there was just one kind of account for your money and it worked in the most effective way possible.
Unfortunately, those who hold our funds safe don’t quite let it function like that – but with a little effort on our part, we can make our money work as hard as possible and get us extra benefits along the way. One key way to do exactly that is to pay into a high interest savings account – putting your money away for emergency funds, future use or simply saving up for something specific. Here we’ve rounded up some of the best interest rates possible to access right now in the UK.
Higher interest rates for your money are important because they are a tool which can help counteract one of the forces which works against how much your cash is worth: inflation, in other words, the cost of buying things going up. Rates below are correct at the time of going to press but are always subject to change, while different account types let you access your money in different ways or at specified times, so be sure to check which is right for your circumstances. As always, read the terms and conditions if you are considering using any of these accounts, as they may also have different requirements and stipulations to get the indicated rates.
Important to know: Gross interest is the rate of interest before income tax is deducted. AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and compounded once each year. This makes it easier to compare rates across accounts of different types and lengths. Your own income and circumstances will determine whether you pay tax on interest earned.
