Savers in the UK are seeing more competitive offers this summer as banks and financial providers increase interest rates across various savings products, presenting consumers with a wider range of more attractive options. Rising rates are encouraging those with funds in low- or no-interest accounts to consider moving their money into higher-yielding accounts.

Instant- and easy-access savings accounts now offer interest rates up to 5%, while fixed-rate savings bonds provide similar, often better, returns. Regular savings accounts have become particularly appealing, with some offering rates as high as 8%.

Rachel Springall from the financial data provider Moneyfacts notes that the current market presents a strong selection of products, but cautions savers to be proactive in switching accounts to maximize benefits while these rates last. According to Moneyfacts, there are 1,385 live savings accounts paying interest above the Bank of England base rate of 3.75%, the highest number recorded in over six years, representing more than half of all available savings accounts based on a typical £5,000 balance.

With ongoing concerns about the cost of living, many savers prefer easy access to their funds. The average interest rate on non-Isa easy-access savings accounts has reached 2.53%, a level not seen in nearly a year. Top offers go significantly higher: for instance, Revolut, now a fully licensed bank in the UK, is offering a 5% interest rate on instant-access savings accounts for new customers opening accounts before 4 August, applicable on balances up to £25,000 for four months. After this introductory period, rates revert to lower levels depending on the account type.

Chase, the UK retail branch of JP Morgan, offers a new easy-access account called Chase Saver, which provides a 4.5% interest rate for new customers during the first year — comprised of a 2.25% base rate plus a 2.25% bonus. This account requires holders to open a free Chase current account and allows savings up to £3 million.

Fixed-rate bonds continue to attract savers willing to lock in funds for set terms, typically from six months to five years, providing guaranteed returns. One-year fixed-rate bonds have grown in popularity, with the average rate now at 4.22%, the highest since late 2024. Some providers offer even higher yields, including Marcus by Goldman Sachs at 4.9% and Atom Bank at 4.8%, both accepting deposits up to £250,000.

For those looking to save regularly by setting aside money each month, several banks have launched high-interest regular savings accounts. Lloyds recently introduced its Monthly Saver paying 8% interest, allowing deposits between £25 and £250 monthly, with interest paid after 12 months. Similar accounts are available at Halifax and Bank of Scotland, although access restrictions apply on some versions. Santander also offers an 8% regular savings account for customers who save up to £200 per month, paying interest for 12 months.

Savers should be mindful of potential tax implications. Interest earned on savings held outside Individual Savings Accounts (ISAs) is subject to income tax once personal savings allowances are exceeded. These allowances are £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers, and up to £5,000 for individuals earning under £17,570 annually.

Overall, the increased competition among UK banks is generating a range of attractive saving options for consumers seeking better returns, but choosing the right product depends on individual circumstances, including access needs and tax considerations.