Your bank might reward you for switching ... but is it rewarding you for saving?
We have looked at bank-switching bonuses recently. However, once the bonus lands, there is another question worth asking yourself ...
What interest is your money actually earning?
A savings account can sit quietly in the background for years. Unfortunately, so can a disappointing interest rate!
I have compared six UK accounts covering:
- Easy-access savings
- Fixed-rate savings
- Cash ISAs
- Regular savers
The headline rates are interesting. The conditions behind them are where the real comparison begins.
Rates and provider pages checked as at 8 October 2026.
This is a researched selection, rather than a whole-market ranking. I am not claiming to have personally opened or tested all six accounts. Rates and availability can change, so check the official pages before applying.
All provider links below are ordinary links, without referral or affiliate tracking.
The six accounts at a glance
| Account | Headline AER | Deposit requirement | Main condition |
|---|---|---|---|
| Starling Personal Easy Saver | 5.00% variable, including bonus | No minimum; promotional rate up to £25,000 | Qualifying new customers; six-month bonus |
| NS&I Guaranteed Growth Bond, one year | 4.99% fixed | From £500 | No withdrawals during the term |
| Principality Online Bonus Triple Access Cash ISA | 4.25% variable, including bonus | From £1 | Three withdrawals per tax year; 12-month bonus |
| Virgin Money 1 Year Fixed Rate Cash E-ISA, Issue 708 | 4.77% fixed | From £1 | Fixed until 24 October 2027; early withdrawal charge |
| Santander Regular Saver | 8.00% variable, including bonus | Up to £200 per account month | Santander current account required; 12-month bonus |
| first direct Regular Saver | 7.00% fixed for 12 months | £25–£300 monthly | 1st Account required; no partial withdrawals |
These accounts do different jobs.
You cannot put a £10,000 lump sum straight into a regular saver and earn its headline rate on the whole amount.
Likewise, money locked away for a year is not much use if you suddenly need it for an emergency.
A quick explanation of AER
AER means Annual Equivalent Rate. It helps compare interest rates by allowing for compounding.
It does not mean a promotional rate lasts for a full year.
Gross interest is before any tax due. Cash ISA interest is tax-free under the applicable rules.
1. Starling Easy Saver — watch the six-month bonus
Starling's Personal Easy Saver advertises 5.00% AER variable for qualifying new customers, on balances up to £25,000.
That includes a fixed 2.50% AER bonus for the first six months.
To qualify for this offer, you need to open a new personal current account from 1 October 2026 and apply for the saver within 30 days. Closing a personal current account after 30 September 2026 makes you ineligible for that offer.
There is no minimum opening deposit, and withdrawals to the linked account are unrestricted.
After six months, the underlying rate currently stands at 2.50% AER variable. That standard rate also applies above the promotional balance cap.
Other saver applications have a different advertised rate, so existing customers should not assume they qualify for 5%.
My view: worth investigating for accessible savings if you qualify ... BUT put the bonus expiry in your fluffing calendar.
A six-month offer has a habit of becoming a forgotten account in month seven!
Official Starling Easy Saver rates and eligibility
2. NS&I — fix the rate, commit the money
The one-year NS&I Guaranteed Growth Bond, Issue 93, pays 4.99% gross/AER fixed.
You can start with £500, but you cannot withdraw the money during the term. Interest is taxable in the tax year the bond matures.
NS&I savings are backed by HM Treasury, rather than being limited to ordinary FSCS deposit cover.
My view: a useful comparison for a lump sum you can genuinely leave untouched.
The important word here is not just “guaranteed”. It is also “one-year”.
If that money might be needed for a repair, an unexpected bill or everyday spending, the withdrawal restriction matters more than a slightly better rate. This is the ultimate one year set and forget!!!
Official NS&I Guaranteed Growth Bonds information
3. Principality — tax-free savings with limited withdrawals
Principality's Online Bonus Triple Access Cash ISA advertises 4.25% AER tax-free variable.
That includes a 1.90% variable bonus for the first 12 months. The underlying rate is currently 2.35%.
You can open it online from £1 as a UK resident aged 18 or over. A linked UK current account in your name is required.
You can make three withdrawals per tax year, with closure or transfer available separately.
It is also a flexible ISA: qualifying withdrawn money can be replaced in the same tax year without using more of your ISA allowance.
My view: potentially useful for a savings pot you rarely touch. You can touch it and so is good if heaven forbid you ever need it for a fluffing emergency.
Three withdrawals might be plenty for one person. For somebody regularly dipping into savings, they could be inconvenient.
And, once again, the bonus expiry deserves a calendar fluffing reminder.
Official Principality account terms and summary box
4. Virgin Money — a fixed cash ISA at 4.77%
Virgin Money's 1 Year Fixed Rate Cash E-ISA, Issue 708, pays 4.77% AER tax-free, fixed until 24 October 2027.
The minimum opening amount is £1. Deposits and ISA transfers must be received within 30 days of opening.
Early withdrawals come with a charge equivalent to 60 days' interest on the amount withdrawn.
This account is not flexible: money withdrawn cannot simply be replaced under flexible-ISA rules.
My view: worth comparing if you want tax-free interest and can commit to the fixed period.
Check the actual maturity date. Do not assume “one-year” means exactly one year from whichever day you open it.
Official Virgin Money Issue 708 information
5. Santander — 8%, but think monthly
Santander's Regular Saver pays 8.00% AER/gross variable, including a 5.00% variable bonus for the first 12 months.
The underlying rate is currently 3.00%.
You need a Santander current account and can pay in up to £200 per account month. I got one of these when Santander came and took over the TSB!
There is no compulsory monthly payment, although you must keep a minimum balance of £1.
Withdrawals go to your Santander current account. Any money you withdraw and put back counts towards the monthly deposit limit.
Santander's illustration shows £200 monthly producing:
- £2,400 in deposits
- Up to £104 interest in year one
That assumes the provider's specified payment dates, no withdrawals and unchanged rates.
My view: an attractive headline for eligible monthly savers.
However, you do not earn 8% on £2,400 held for a whole year. Most of that £2,400 arrives gradually.
Official Santander Regular Saver terms and example
For the separate switching offer, see our Santander bank-switching guide. Saving and switching have different conditions.
6. first direct — 7% fixed, with tighter access
The first direct Regular Saver pays 7.00% AER/gross fixed for 12 months on permitted savings.
You must hold a first direct 1st Account throughout the term and save £25–£300 monthly by standing order.
There are no partial withdrawals.
If you need early access, you must close the saver, and interest is paid at the standard Savings Account variable rate instead.
Unused monthly allowance can be carried forward within the account's maximum-balance rules.
The provider illustrates £300 monthly producing:
- £3,600 in deposits
- £136.50 interest
That assumes payments on the first of each month and no withdrawals.
My view: the fixed rate offers certainty for eligible monthly savings, but the access restriction makes it a different proposition from Santander's account.
Official first direct Regular Saver terms and example
What does a better rate mean in pounds?
Percentages can sound impressive without telling you very much.
Here is a simple illustration for £1,000 left untouched for 12 months, assuming the stated AER applies throughout, interest stays in the account and there are no fees.
Figures are before any tax.
| Illustrative annual rate | Interest on £1,000 | Ending balance |
|---|---|---|
| 1.00% | £10.00 | £1,010.00 |
| 4.25% | £42.50 | £1,042.50 |
| 4.77% | £47.70 | £1,047.70 |
| 4.99% | £49.90 | £1,049.90 |
The difference between 1% and 4.99% is £39.90 on £1,000, or £399 on £10,000, under the same assumptions.
These are calculations, rather than guarantees for variable-rate accounts.
I have deliberately left Starling's promotional 5% out of this full-year table because the bonus expires after six months.
Regular savers also need a different calculation because money goes in monthly.
Multiplying the final deposited total by the headline percentage overstates the interest.
Cash ISA or ordinary savings account?
A cash ISA shelters interest from UK tax, subject to the rules.
For 2026/27, the total ISA subscription allowance is £20,000 across ISA types.
That is not £20,000 for every fluffing account you open!
Outside ISAs, the Personal Savings Allowance is generally:
- £1,000 of interest for basic-rate taxpayers
- £500 for higher-rate taxpayers
- No allowance for additional-rate taxpayers
Other allowances may apply, particularly for people with lower incomes. Your circumstances determine whether tax is due.
The useful comparison is what you keep after tax, rather than the headline rate alone.
If existing ISA money needs moving, use the receiving provider's ISA transfer process, rather than withdrawing it yourself.
Official guidance:
Check protection as well as interest
FSCS deposit protection is currently up to £120,000 per eligible person, per authorised firm.
Different banking brands can share one authorisation. Several accounts do not necessarily mean several separate protection limits.
Use the official FSCS protection checker before placing larger balances.
NS&I has its separate government-backed arrangement.
My five-minute savings check
- Find your actual rate in your app or statement.
- Decide what must remain accessible.
- Compare accounts in the same category.
- Check eligibility, deposit limits, withdrawals, fees and bonus expiry.
- Calculate the benefit in pounds and set a review reminder.
A tiny rate improvement may not justify much administration on a modest balance.
Moving money away from a genuinely poor rate can make a more noticeable difference.
The MMOnline verdict
There is no single winner here.
Santander has the highest headline rate in this selection, but it is a monthly saver. NS&I offers a fixed lump-sum rate, but locks your money away. The cash ISAs introduce tax benefits and their own access rules.
Start with what you need the money for. Then compare the rates you actually qualify for.
Your bank might reward you for switching ... but it is worth checking whether it is rewarding you for staying, too!
If you are still building your savings pot, our seven places to make extra money online covers practical earning routes.
And the Sunday Money Reset can help free up money to put aside.
You can also read this UK savings rates comparison on MMOnline, with official provider links and the key account conditions.
When did you last check your savings rate?
And for readers outside the UK ... Do banks in your country offer similar bonus rates or regular savers? It would be interesting to compare.
Written for @mmonline. This researched comparison provides general information, not personalised financial advice. Rates were checked on 8 October 2026 and may change. Read the current provider terms before applying.
