Best savings accounts 2024 - Which? (2024)

Savings rates have soared over the last couple of years thanks to 14 successive rises in the Bank of England base rate between December 2021 and August 2023.

However, the Bank of England's decision to freeze the base rate in September and November has led to a cooling in the market and rates are beginning to fall from their peaks.

In this guide, we reveal the top rates across instant-access, fixed-rate and regular savings accounts as well as showing you the best savings providers based on customer experiences and expert Which? analysis, so you can find the right home for your cash.

The best savings rates in January 2024

Our experts regularly scour the market for the best rates so you don't have to. Here's what you can currently get, based on how long you're willing to lock your cash up for. The top rates are based on an initial deposit of£5,000.

The information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of the savings account provider before committing to any financial products. Please note that minimum and maximum deposit amounts vary, even across products with the same rate, so make sure you consider the full details before you opt for a new account.

• Find out more:what are the different types of savings accounts?

The best regular savings accounts

Regular savings accounts can offer higher interest rates than many other types of savings product, but some of them require you to have a current account with the same provider.

Just bear in mind that unlike fixed-rate bonds or instant-access accounts, which allow you to deposit a lump sum, you'll be much more restricted on the amounts you can pay into a regular savings account: maximum monthly deposits are typically between £250-£500.

What's more, the rates are sometimes only payable for a limited time, often 12 months.

Please note that minimum and maximum deposit amounts vary, even across products with the same rate, so make sure you consider the full details before you opt for a new account.

Who are the best savings providers?

We know that customer service is an important factor for many people when choosing a savings account. But how do you find a bank or building society that combines great rates with top-notch customer service?

Which? is here to help. We've asked thousands of savers to rate their bank or building society, enabling us to create unique provider scores for all the major providers.

We've also analysed thousands of savings products and given each provider an overall product score, highlighting which companies offer consistently competitive rates. The full results from our most recent analysis are as follows:

Which? Recommended Providers for savings

Each year, we name the best savings providers as Which? Recommended Providers (WRPs). To win this award, the bank or building society must:

• achieve a provider score of 75% or above
• achieve an above-average product score of 58% or more
• be fully covered by the UK Financial Services Compensation Scheme (FSCS)
• offer products that are available nationally and are not tied to the purchase of another product with the same provider.

This year, our WRPs (in provider score order, rates checked 17 January 2024) are:

Marcus by Goldman Sachs

Marcus by Goldman Sachs received an 85% provider score. Savers gave it top marks for its application process and communication, as well as transparency of fees and charges. It was also praised for the interest offered on its instant-access account.

Marcus currently offers an instant-access savings account and cash Isa that both pay a competitive variable rate of 4.75% AER (4.65% gross), including a 0.49% (gross) bonus rate. This means the rate will fall to 4.24% AER (4.15% gross) after the first 12 months.

Paragon Bank

Paragon Bank achieved a provider score of 82%. It was highly rated by savers for its application process, communication and transparency of charges and penalties. Customers also gave it top marks for the quality of its instant-access rates.

Paragon Bank offers 2% AER on its restriction-free instant-access account, but you can generally get higher rates if you choose a product that limits the amount of withdrawals allowed.

Coventry Building Society

Coventry Building Society earned a provider score of 79%. Savers gave it high ratings for its customer service, application process, regular communications, and transparency of charges and penalties. Its telephone banking service proved particularly popular. Its instant-access savings rates were also rated highly.

It is the only WRP for savings with a branch network. Like many providers, it pays more if you manage your account online and make fewer withdrawals.

Coventry Building Society offers a range of savings accounts, with its restriction-free instant-access account offering 3.4% AER.

Zopa

Zopa achieved a provider score of 78%, with customers giving it high ratings for its application process, regular communications, and transparency of charges and penalties. Its competitive instant-access rates were also commended.

Among the savings accounts on offer, Zopa's unrestricted instant-access Smart Saver account pays 4.54% AER, rising to 4.8% if you choose a 'Boosted Pot' product that requires 95 days' notice on withdrawals.

Can any savings accounts beat inflation?

Inflation climbed slightlyto 4% in December2023 according to the Office for National Statistics (ONS).

Which? analysis of Moneyfacts data conducted on 17 January found 804 savings accounts (with an initial investment of up to £5,000) offering rates higher than 3.9%. That's an impressive 55% of themarket and includes accounts with opening restrictions.

For accounts anyone can apply for (including junior Isas and children's savings accounts),56% (656) offer rates above December's inflation figure.

Could you earn more interest from a current account?

Despite a series of rate cuts on popular interest-paying current accounts, many still offer meaningful returns, albeit only on small balances. You'll also need to make sure you pay in the required minimum monthly amount to qualify for interest.

For example, Nationwide's FlexDirect current account is the highest-paying. It currently pays 5% AER on balances up to £1,500, but only for the first 12 months, generating a maximum return of £73. The rate will drop to 0.25% AER after that. You're also required to pay in at least £1,000 a month.

• Find out more:best high-interest current accounts

How to transfer your savings to your new account

Once you've selected and opened an account it's time to transfer your money.

If you're moving existing savings from elsewhere, you'll need to check what your options are with your current provider.

Some providers allow you to make a BACS transfer straight to your new account. Others will require you to transfer the money to a current account first.

It may also be possible for your new provider to initiate a Direct Debit from your old account.

Once you've switched savings accounts, don't rest on your laurels. If the new savings account has an introductory bonus, make a note of when it ends, as you may want to switch again to make sure you're still getting a good deal.

If it's a variable rate account, keep an eye on your rate to make sure it stays competitive.