What is a savings account?

Savings accounts are types of accounts with a bank or building society where you put away money to earn a return through interest. While the interest you earn on many savings accounts can be relatively modest, they provide a safe and reliable place to stash your money for short term needs. They’re especially useful if you’re looking to build an emergency fund, or for short-term savings goals like buying a car or a holiday. Read more about how savings accounts work.

What is our highest rate for a savings account?

Our best interest rate for a savings account is currently 5%.

Is your money safe in a savings account?

The Financial Services Compensation Scheme (FSCS) provides £85,000 of protection for each person who has saved money in a registered bank or building society in case it goes bust. This rises to £170,000 for joint accounts. So, if you’re a single person with £170,000 in savings, you could protect the full amount by putting £85,000 in two separate accounts held by different savings providers. But keep in mind that many banks operate under shared licences, for example HSBC and First Direct, which means you are only protected up £85,000 even if you have accounts in both banks.

Do I have to tie my money up to save?

No, you can choose how much access you have to your money by choosing the right savings account.

Can I get a joint savings account?

Yes, most savings accounts can be set up in joint names, so you should be able to do this if you’d like to save with someone else.

Where can I put my money to earn the most interest?

If you would like to earn the maximum amount of interest then you will need to compare savings accounts. Generally, fixed-rate accounts have higher interest rates in exchange for locking away your money for a fixed amount of time. But there will be some exceptions, so the key to finding the most interest is research.

Cutting the cost of living

Prices are soaring across the UK, and wages aren't keeping up. To help people manage the cost of living crisis, here are our guides to saving on bills, dealing with debt and raising some extra cash