UK banks offer savings rates up to 8% amid fierce competition
9 reported
A single-source report from The Guardian indicates that UK savers are seeing increased interest rates and more choices as banks compete for deposits. Instant- and easy-access accounts now pay up to 5%, while regular savings accounts offer up to 8%. The number of savings accounts paying more than the Bank of England base rate of 3.75% has risen to 1,385, the highest in over six years, according to financial data provider Moneyfacts. Revolut recently launched a 5% instant-access savings rate for new customers until 4 December, while Chase offers new customers 4.5% on its easy-access account. Fixed-rate bonds average 4.22% for one-year terms, with Marcus by Goldman Sachs paying 4.9% and Atom Bank paying 4.8%. Lloyds and Santander each launched regular savings accounts paying 8% for 12 months, with monthly deposit limits of £250 and £200 respectively. The article notes that interest earned outside an Isa is subject to tax above personal savings allowances.
What’s reported
Instant- and easy-access accounts pay up to 5% interest; regular savings accounts pay up to 8%.
Number of savings accounts paying above the 3.75% base rate rose to 1,385, the highest in over six years.
Revolut offers new customers 5% on instant-access savings until 4 December, then reverts to plan rate (e.g., 2.9% for standard plan).
Chase Saver pays new customers 4.5% (includes 2.25% bonus for 12 months; standard rate 2.25%).
Average one-year fixed bond rate rose to 4.22%, highest since November 2024.
Marcus by Goldman Sachs one-year fixed bond pays 4.9%; Atom Bank pays 4.8%.
Lloyds Monthly Saver pays 8% for 12 months, with monthly deposits of £25 to £250.
Santander regular savings account pays 8% for 12 months, up to £200 per month.
Interest outside Isa is taxable above personal savings allowance: £1,000 for basic-rate, £500 for higher-rate, up to £5,000 for incomes under £17,570.
Key figures
Rachel Springall, financial data provider Moneyfacts
Revolut, fintech bank
Chase, retail arm of JP Morgan
Marcus by Goldman Sachs
Atom Bank
Lloyds Banking Group (including Halifax and Bank of Scotland)
Santander
Sources: The Guardian
