We’re all saving for something, whether it’s a dream holiday, a first home, a growing family, a special occasion, a retirement plan or a rainy-day fund. But with so many options available, it can be a challenge to answer the question: What is the best savings account for you?
Finding the best savings account for you can make a big difference to how quickly your money grows and how easily you can access it when you need it. Before opening an account, it’s worth taking the time to understand how each one works and which one best suit your financial goals.
In this guide, we’ll cover six different types of savings accounts, from easy access and Regular Savers, notice accounts and children’s accounts, to cash ISAs and fixed rate bonds. We’ll provide you with an overview of what each account offers, including the benefits and considerations to weigh-up, to help you understand which savings accounts are right for you.
So, what is the best savings account for you? Let’s find out.
Savings accounts come in different types and are all designed to suit a wide range of goals and circumstances. Understanding how these different accounts work can help you choose the right one for your needs. Whether you’re saving for emergencies, a big purchase, or long-term financial goals, it’s smart to assess your options and seek specialist savings advice before making a final decision.
In this section, we’ll explore these types of savings accounts:
1. Easy Access Savings Accounts
2. Cash ISAs
3. Notice Accounts
4. Fixed Rate Bonds
5. Children's Savings Accounts
6. Regular Savers
Easy access savings accounts, sometimes referred to as instant access accounts, offer a straightforward way to save while keeping your money available whenever you need it. An easy access account comes with no fixed terms and no need to give notice. All you have to do is deposit funds, let them earn interest, and withdraw whenever you like. It’s as ‘easy’ as that.
Easy access savings accounts can provide the following benefits:
Flexible withdrawals
You can access your money anytime you like without penalties, an ideal solution to support your short-term savings goals or for building a rainy-day fund.
Easy to set up and manage
Many easy access savings accounts can be opened with a small deposit. For instance, our easy access accounts can be opened with as little as £1.
Earn interest
While rates are usually lower than other fixed term accounts, you’ll still benefit from interest on your savings. The interest you earn will depend on the rate given by your provider.
Here are the main things to consider when opening an easy access savings account:
Variable interest rates
Rates on easy access accounts can go up or down over time. If your provider decides to lower the rate, they must give you notice and the option to close your account. However, if the account tracks an external rate, like the Bank of England Base Rate, you may not have that same protection. Easy access accounts sometimes pay less interest compared to other notice or fixed rate savings accounts.
Temptation to spend
As you can withdraw money freely, it can be harder to resist dipping into your savings.
Possible limits
Some easy access accounts cap the number of withdrawals you can make per year.
Easy access accounts are flexible and work well for short-term or emergency savings, such as:
If you’re looking for convenience and flexibility, an easy access account is a great choice. This type of savings account is ideal if you want to start growing your savings without having to commit to locking your money away.
Cash ISAs (Individual Savings Accounts) are a flexible type of savings account that allows you to earn tax-free interest on your savings. Each tax year, you get what’s known as an ISA allowance.
Your ISA allowance is the maximum amount you’re able to pay into your account in a tax year. In the 2025/26 tax year, your cash ISA allowance allows you to save up to…
Note: From 6 April 2027, the ISA allowance will be reduced to £12,000 per tax year.
Popular among people looking for an efficient way to grow their savings, cash ISAs come in different forms, such as:
Check out the benefits of opening a cash ISA:
Tax-free savings
You won’t pay any tax on the interest you earn, no matter how much you save.
Annual ISA allowance
Each tax year, you can save up to a set limit across your ISAs. Currently the ISA allowance is £20,000 for those over the age of 18 and £9,000 for junior ISAs.
You can open multiple cash ISA accounts
Some providers will allow you to hold more than one cash ISA in the same tax year, provided you stay within your overall ISA allowance.
Transfer flexibility
You can transfer money between ISAs or from a Stocks & Shares ISA to a cash ISA – all without losing the tax benefits.
It’s worth reviewing these considerations of cash ISA accounts before you open one:
Make the most of your ISA allowance
If you don’t make use of your full ISA allowance in one tax year, it won’t roll over to the following tax year.
Withdrawals can reduce your ISA allowance
If you withdraw money from your ISA, you can’t put it back into your account if the funds go above your annual ISA allowance. This may be different if you have a flexible ISA.
When considering a fixed rate cash ISA, think about how long you’re willing to lock in your savings for, without making withdrawals. If you know you need to save for a long-term goal such as buying your first home, a 5 year fixed rate might be right for you. Alternatively, if you want to grow your savings and have the flexibility to access your funds, an easy access or notice account may suit you best.
JISAs can also be restrictive as they don't allow for withdrawals. However, having funds locked in a JISA account allows the child's money to continue growing to support their future.
Your ISA allowance can’t be carried forward
If you don’t use your full allowance in one tax year, it’s lost.
No joint accounts
Cash ISAs are only available as individual savings accounts. If you’re looking to save with your partner, you won’t be able to open a joint ISA account.
Cash ISAs are excellent for helping you reach your short- and long-term savings goals, such as:
In summary, cash ISAs are a versatile solution that allows you to save for both short and long-term goals while taking advantage of tax-free savings.
A notice account is a type of savings account where you agree to give your building society, bank, or savings provider advance notice before making a withdrawal. This notice period can vary depending on who your account is with, but it's typically between 30 and 180 days. For example, we offer a 90-day notice account and 60-day notice cash ISA. During this notice period, your money will continue to grow, earning interest at the given account rate.
Notice accounts often come with the following benefits:
Higher interest rates
Notice accounts can come with higher interest rates than easy access, allowing your savings to grow faster. *It’s important to know that the interest rate will depend on the provider and may not be fixed.
Encourage savings discipline
The notice requirement helps you steer clear of impulse withdrawals, helping to support your long-term saving goals.
Flexibility with deposits
You can keep adding to your savings over time, rather than being restricted to one lump sum deposit. Again, this can depend on the provider your notice account is with.
Here are the key considerations to make when opening a notice account:
Variable interest rates
The interest rate can go up or down on a notice account.
Introductory offers
Some notice accounts tempt savers with high introductory rates that drop after a set period - often 12 months.
Terms and conditions
Notice accounts may have specific T&Cs, such as:
Opening a notice account is an excellent option if you’re looking to reach your medium-term savings goals, such as:
Notice accounts come with some excellent benefits and are a great solution to help you reach your medium-term savings goals. It should be said that, as you can’t access the funds instantly, it’s a good idea to use a notice account alongside an easy access account. Doing so will ensure you have money available for everyday needs and emergencies, while still benefiting from stronger interest rates on your planned savings.
Need advice on what the best savings account is for you? Want to discuss your savings goals? Get the support you need by booking your savings appointment at your local branch.
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A fixed rate bond, otherwise known as a fixed term savings account, allows you to deposit a lump sum for a set period - usually between 6 months and 5 years. Here, your money is locked away until the end of the term, also known as “maturity”. Throughout the fixed period, your savings will grow, earning a guaranteed interest rate that won’t change - even if the Bank of England base rate fluctuates.
With a fixed rate bond, you could benefit from the following:
Guaranteed returns
Your interest rate is fixed, so you’ll know exactly how much your savings will grow by the end of the term.
Protection from rate changes
You won’t be affected by any cuts to the Bank of England base rate.
Higher interest potential
Longer-term fixed rate bonds typically come with more competitive rates than shorter ones. This will depend on the provider.
Simple to manage
Opening a fixed rate bond usually involves depositing a single lump sum, so you don’t have to worry about topping it up.
Flexibility to hold more than one
You can open multiple fixed rate bonds to spread your savings across different terms and at different rates.
Fixed rate bonds can be a smart option if you’re happy to lock away your money for a set period, but there are some considerations to think about:
Limited access
Once you’ve deposited your money, you usually can’t withdraw it until the bond matures. Your provider may allow you to withdraw your money early, but this often comes with a penalty. Also, you don’t typically have the flexibility to top up your account once you’ve placed your initial deposit.
Missed opportunities if rates rise
As your interest rate is fixed, you won’t benefit if the Bank of England base rate or wider savings market increases during your term.
Tax on interest
Any interest earned that goes above your Personal Savings Allowance may be taxable.
Fixed rate bonds work best if you have a lump sum that you can put aside and won’t need to touch for a while. These types of savings accounts are suited to more long-term savings goals, such as:
As you can’t easily access your money during the fixed term, it’s a good idea to keep some funds in an easy access account for emergencies. You can then use fixed rate bonds for the money you’re confident you won’t need right away and to help you reach your long-term savings goals.
Children’s savings accounts are designed to help under-18s learn how to manage money safely. These types of savings accounts are like traditional savings accounts, where pocket money, birthday gifts, or part-time wages can be securely stored and earn interest over time.
Due to safety purposes, some children’s savings accounts can only be accessed by the child’s trustee, typically the child’s guardian, until the child reaches a certain age. For example, with our Humphrey Club Young Saver Account, the trustee can be removed from the account when the young saver turns 13. The account can be held up to the age of 18.
Generally, the children’s savings account automatically becomes an adult account when the child reaches a certain age. Alternatively, the money saved can be moved into another account with support from a savings provider.
Children’s savings accounts come with these benefits:
Teaches financial skills
Children can learn how to budget, save, and manage money responsibly.
Earns interest
Depending on the account, a child’s savings can grow with interest.
Parental and trustee control options
The child’s trustee can ensure the savings account is looked after until the child reaches an age where they can be responsible for the account.
Here are the key things to consider if you’re thinking about opening a children’s savings account:
Variable interest rates
Many children’s savings accounts have variable rates, meaning returns can go up or down.
Withdrawal limits
Some children’s savings accounts limit withdrawals or restrict certain types of payments.
Transition to adult account
While many providers automatically upgrade to an adult account when the child reaches a certain age, it’s best to check the terms of the account to see what features apply.
Children’s savings accounts can help build good financial habits early and can be used to save for:
Children’s savings accounts offer a safe and structured way to introduce money management, while also giving children the freedom to make small spending decisions under parental guidance.
A regular saver, sometimes called a monthly savings account, is designed to help you build a steady savings habit by making monthly deposits. For context, our Regular Savers account allows you to invest up to £500 per month, with interest paid annually.
Often, people get drawn in by high rates. However, these are often linked with small deposit limits such as £150-£250. While depending on the provider, accounts that allow greater deposits often come with a slightly lower rate.
Regular Savers accounts offer the following benefits:
Encourages consistent saving
You can build steady financial habits by making regular monthly contributions.
Joint accounts
Some providers, including us, allow you to set up a joint Regular Savers account.
Goal-focused saving
Helps you work towards a short or long-term milestone, such as a holiday, car, or wedding.
Low entry points
You can usually start with monthly deposits as little as £10 a month. You can open our Regular Savers account for an initial deposit of just £1. After that, you can pay into your account as many times as you like, up to a maximum of £500 each calendar month. What’s more, you don't have to pay into the account every month, and you don't have to pay in the same amount each month.
If you’re thinking about opening a Regular Savers account, here are some things to consider:
Deposit limits
You can only save up to a certain amount each month (e.g., £500). If you’re intending to save a large amount, a fixed rate bond or ISA might be a better option. This may not be an issue if you’re happy to save up to this monthly set amount.
Withdrawal restrictions
If you want to take money out early, you may be limited or penalised. Our Regular Savers account allows you to make three withdrawals a year. We’ve done this to encourage savings habits with the reassurance that you can access your funds throughout the year.
Commitment required
Missing monthly payments could affect your interest or account terms. It’s best to understand the T&Cs of the account before you open it.
Regular Savers accounts are perfect for short- to medium-term goals where you want to gradually build up a pot of money, for:
A Regular Savers account helps you build discipline and gives you a structured way to save for your short and medium-term savings goals.
Knowing what the best savings account is for you comes down to what you’re saving for and how you prefer to manage your money. Easy access accounts are great for flexibility, notice and fixed rate accounts offer stronger returns for planned savings, ISAs provide valuable tax-free benefits, and children’s or regular saver accounts help instil good financial habits.
By matching the right account to your personal goals, you can make your savings work harder and build a financial plan that supports both your short- and long-term savings goals.
As you consider opening any of the savings accounts discussed in this guide, it’s important to speak to a savings specialist so you can fully understand the terms and conditions and how you’ll benefit from opening an account. It may be that you decide to open more than one of the accounts highlighted in this article. Again, it’s worth reading the T&Cs of each option and speaking to the provider.
If you’re looking to grow your savings, but don’t know where to start, we can help. As a force for good, with over 160 years of supporting savers reach their financial goals, we’re right by your side to guide you to the best savings account suited to your needs.
Explore our range of savings accounts or book a savings appointment at your local branch and start growing your savings so you can do great things today and even better things tomorrow.
