Get 4.9% on Your Savings as Rates War Among Banks Intensifies

By the Editorial Team · Wednesday, July 22, 2026

UK banks and building societies have raised interest rates on fixed-rate cash ISAs, bonds, and easy-access savings accounts, with some one-year bonds now offering rates close to 5%. This increase provides savers with higher returns than the previous year, though bonus rates often come with restrictions that require careful consideration.

Savers in the United Kingdom are seeing improved returns as banks and building societies increase interest rates on savings products amid heightened competition. Recent adjustments have pushed yields on fixed-rate cash ISAs and bonds to levels not seen in over a year, providing new opportunities for consumers looking to maximize their savings income.

One-year fixed-rate cash ISAs now offer significantly higher rates compared to 12 months ago. Vida Savings leads the market with a 4.65% rate following recent hikes by several providers. This marks an increase from the top rate of 4.3% offered the previous year. Several other institutions offer rates exceeding 4.5%, including Tandem (4.62%), Hodge Bank and Close Brothers (4.61%), Investec, Coventry Building Society, and Oaknorth (each at 4.6%), Charter Bank (4.58%), Furness Building Society (4.57%), and Aldermore (4.55%).

The fixed-rate bond segment has also seen notable improvements. Marcus by Goldman Sachs currently offers 4.9% for a one-year bond, surpassing the best available rate of 4.52% from Cynergy Bank a year ago. National Savings & Investments (NS&I) has increased its one-year bond rate to 4.69%, up from 4.18% during the same period last year. NS&I has publicly stated its objective to attract £15 billion from savers in the current financial year, reflecting the institution’s competitive positioning.

In the easy-access savings market, rates have climbed above 4.5% in recent days. Hargreaves Lansdown raised its offering to 4.52%, prompting app-based savings platform Moneybox to increase its rate to 4.65%, which includes a 1.2 percentage point bonus for the first 12 months. Similarly, Trading 212 offers 4.67%, factoring in a bonus of 1.07 percentage points during the initial year.

While bonus-related rates can provide attractive returns for active savers, some experts caution that such accounts often come with restrictions on withdrawals or require regular monitoring to avoid lapsing into lower rates. For this reason, bonus rates are not typically included in standard best-buy tables, as some savers may face difficulties switching accounts promptly if needed.

Among current easy-access offerings, Saga has increased its rate to 4.5%. Some accounts present higher headline rates but with notable caveats. For instance, Cahoot’s Sunny Day Saver offers 5% interest but limits deposits to £3,000, with the rate reverting to 1% after one year. Tembo’s Home Saver account provides 4.55%, including a 1.55 percentage point bonus for the first year, for deposits up to £25,000.

As competition among financial institutions intensifies, savers are encouraged to review current rates and product terms carefully to capitalize on the improved returns and make informed decisions based on their individual saving strategies.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.