Best savings accounts for 2025

Regardless of why you’re saving – for a house, holiday, or as a buffer to cover emergencies – you’ll want to make sure your money is working as hard as possible.

Seeking out an account with a more competitive interest rate can make a huge difference.

For example, Punjab National Bank is paying among the lowest returns, with its savings account offering 0.75pc. A saver with £50,000 in this account will earn around £376.29 a year in interest. Moving the deposit to the best buy easy access account from Monument Bank, paying 4.75pc, would yield £2,427.39 a year, an extra £2,051.10.

To help you get the most out of your savings, The Telegraph has compiled the best rates available on the market right now for bonds, savings accounts, Isas and current accounts, using data from market analyst Moneyfacts.

In this article, we will cover:

• The best fixed-rate bonds

• The best variable savings account rates

• The best current account rates

• The best Isa rates

• How to choose the right account for you

Unlike a current account, which you’ll use to pay your bills and for everyday spending, a savings account is designed to be the place where you can stash your spare money away, where it will hopefully grow over time.

There are several different types of savings accounts – some offer variable rates, which can change at any time, while some require you to commit to locking your cash away for a fixed amount of time.

In theory, the more inconvenient an account is, the more interest you should earn – but it’s not always the case.

Fixed-rate bonds tend to pay the highest rates on the market, but most top rates can currently be beaten (albeit not by much) by several types of variable accounts – including the top-rate easy-access account.

What savers need to weigh up is whether to take a fixed deal in order to get guaranteed interest for a longer term, or take a chance on a variable-rate and hope the interest doesn’t get slashed soon.

We’ve assessed the top bond accounts for various lengths of term:

Oxbury Bank 1 Year Fixed Rate Account – 4.61pc

Requires a deposit of at least £1,000 to open the account. Interest is paid when the account matures.

Oxbury Bank 2 Year Fixed Rate Account – 4.53pc

Account requires a minimum deposit of £1,000. Interest is paid annually on the account’s anniversary.

JN Bank 5 Year Fixed Rate Account – 4.55pc

You must save at least £100 in this account. Interest is paid on annually on the account’s anniversary.

Variable-rate accounts tend to come with more flexibility than fixed-rate deals; often, you can make as many withdrawals as you like without taking a hit on interest, but some specific deals have their own restrictions.