Best savings accounts of the week: Britons 'need to be quick' as banks offer 'market-leading' 8% interest rates

Savers have benefited in recent years from the Bank of England's decision to raise the base rate to as high as 5.25 per cent in the financial institution's fight against inflation.

Last year, the central bank's Monetary Policy Committee (MPC) voted to slash interest rates to 4.75 per cent in win for borrowers, with further cuts expected to take place throughout 2025.

However, analysts are sounding the alarm that the period of record high savings rates could be coming to an end which means those looking for a "guaranteed return" need to take action.

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Best regular savings accounts

Here is a list of the best regular savings accounts currently on offer for the week beginning January 27, 2025:

• Principality BS - Eight per cent AER / 7.85 per cent Gross
• The Co-operative Bank - Seven per cent AER/Gross
• Principality BS - Seven per cent AER/Gross
• Nationwide BS - 6.50 per cent AER/Gross
• NatWest - 6.17 per cent AER / Six per cent Gross
• Royal Bank of Scotland - 6.17 per cent AER / Six per cent Gross
• West Brom BS - Six per cent AER/Gross
• Market Harborough BS - Six per cent AER/Gross
• TSB - Six per cent AER/Gross.
• Principality BS - 5.60 per cent AER/Gross.

Best fixed-rate savings account

Here is a list of the best savings accounts on offer with a one-year fixed-rate interest rate attached for the week beginning January 27, 2025:

• Vida Savings - 4.77 per cent AER/Gross
• SmartSave - 4.75 per cent AER/Gross
• GB Bank - 4.75 per cent AER/Gross
• Close Brothers Savings - 4.75 per cent AER/Gross
• DF Capital - 4.74 per cent AER/Gross
• Tandem Bank - 4.65 per cent AER/Gross
• MBNA - 4.65 per cent AER/Gross
• Zopa - 4.65 per cent AER/Gross
• Rova - 4.65 per cent AER/Gross
• ICICI Bank - 4.65 per cent AER/4.57 per cent Gross

Best cash ISAs

Here is a full list of the best cash ISAs with a one-year fixed interest rate attached currently on offer for the week beginning January 27, 2025:

• Castle Trust Bank - 4.55 per cent AER/Gross
• Close Brothers Savings - 4.55 per cent AER/Gross
• United Trust Bank - 4.54 per cent AER/Gross
• Shawbrook Bank - 4.53 per cent AER/Gross
• Kent Reliance - 4.52 per cent AER/Gross
• Secure Trust Bank - 4.52 per cent AER/Gross
• Aldermore - 4.49 per cent AER/Gross
• Hodge Bank - 4.49 per cent AER/Gross
• Charter Savings Bank - 4.49 per cent AER/Gross
• Cynergy Bank - 4.45 per cent AER/Gross.

• Plum - 5.06 per cent AER / 4.94 per cent Gross
• Moneybox - Five per cent AER/Gross
• Trading 212 - 4.90 per cent AER / 4.78 per cent Gross
• Chip - 4.85 per cent AER / 4.75 per cent Gross
• Tembo - 4.80 per cent AER / 4.70 per cent Gross
• Monument Bank - 4.76 per cent AER / 4.66 per cent Gross
• Mansfield BS - 4.75 per cent AER/Gross
• Principality BS - 4.70 per cent AER/Gross
• Tipton & Coseley BS - 4.65 per cent AER/Gross
• West Brom BS - 4.60 per cent AER/Gross
• Vanquis Bank - 4.60 per cent AER/Gross

Best easy access savings accounts

Here is a full list of the best easy access savings accounts without a bonus attached for the week beginning January 20, 2025:

• Atom Bank - 4.85 per cent AER / 4.75 per cent Gross
• cahoot - 4.75 per cent AER / Gross
• Chetwood Bank - 4.66 per cent AER / 4.56 per cent Gross
• Coventry BS - 4.66 per cent AER / Gross
• West Brom BS - 4.65 per cent AER / Gross
• Buckinghamshire BS - 4.60 per cent AER / Gross
• The Co-operative Bank - 4.59 per cent AER / Gross
• OakNorth Bank - 4.57 per cent AER / 4.48 per cent Gross
• Aldermore - 4.55 per cent AER / Gross
• Monument Bank - 4.55 per cent AER / 4.46 per cent Gross.

• Chase - Five per cent AER / 4.89 per cent Gross
• Chip - 4.85 per cent AER / 4.74 per cent Gross
• Sidekick Money - 4.75 per cent AER / 4.64 per cent Gross
• Chip - 4.70 per cent AER / 4.60 per cent Gross
• Principality BS - 4.55 per cent AER / Gross
• Cynergy Bank - 4.50 per cent AER / Gross
• Nottingham BS - 4.50 per cent AER / Gross
• Skipton BS - 4.40 per cent AER / Gross
• Marcus by Goldman Sachs® - 4.30 per cent AER / 4.22 per cent Gross
• SAGA - 4.30 per cent AER / 4.22 per cent Gross.

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Rachel Springall, Finance Expert at Moneyfactscompare.co.uk said: "Savers searching through the latest top rate deals may be disheartened to find providers have cut rates on short-term fixed bonds. Over the past week, the one-year fixed bond market has seen a handful of providers slash rates, so savers need to be quick off the market to grab a lucrative deal. In contrast, GB Bank and DF Capital made it into the one-year fixed bond top rate table recently, so its not all bad news.

"Those looking for a guaranteed return for longer will find a new market-leading deal from JB Bank on its five-year bond, there were also rate increases from Oxbury Bank on its three, four, and five-year fixed bonds. However, those looking to fix for two years would be wise to note last week’s market leading bond from Birmingham Bank has since been withdrawn.

"Savers keen to take advantage of the Cash ISA allowance before the new tax year will be pleased to see a few providers increasing rates over the past week. Shawbrook Bank has grabbed the top spot for a three-year fixed Cash ISA after a rate increase and Close Brothers Savings improved its position in the top one-year fixed Cash ISA table.

"Those looking to save little and often may wish to look beyond easy access accounts, and instead use a regular savings account which can encourage the savings habit. The top regular saver continues to be offered from Principality Building Society at eight per cent fixed for six months. Whichever account savers decide on, it is imperative to ensure they stay within their Personal Savings Allowance (PSA) and take advantage of their ISA allowance to protect their hard-earned cash from tax."