Interest rates have remained higher than expected in 2026 and, while that can be frustrating for the wider economy, for businesses and for homeowners looking to renew their mortgages, it’s great news for savers.
Higher interest rates among banks, building societies and other finance providers means better competition and more choices for consumers.
It is important to not leave funds sat in current accounts or savings accounts earnings no or low interest, as with inflation still around 3 per cent and likely to head higher across the year, it will erode the spending power of your cash if your interest rate is not above that.
Thankfully, many providers outside the high street names are offering interest rates well in excess of 4% right now, so if you haven’t already done so, move your money to a better place - just always remember to check the account conditions suit your needs.
Here are the highest-paying easy access savings accounts, cash ISAs and fixed-term saver options right now, with rates correct at the time of writing.
Best cash ISAs in July
Cash ISAs are like normal savings accounts, but you don’t pay tax on interest earned and there are other rules, like a £20,000 annual allowance.
Trading 212 offer 4.51% which includes a boosted rate if you open via The Independent. That’s the best rate on the Cash ISA market at present - it includes a bonus for 12 months for money put in during the current tax year. It’s flexible, so you can withdraw and put money back without affecting your ISA limit, and interest is paid daily.
Elsewhere, Plum is offering 4.44 per cent which includes a boost for 12 months, but you must keep the account for the full 12 months to get it. Any transfers in get a lower 4 per cent rate. It’s a flexible ISA and as Plum isn’t a bank, your money is actually stored with the likes of Lloyds, Citibank and others.
After that there’s a constantly evolving battle for the higher rates, which right now includes Chip at 4.42 per cent for new customers, Hargreaves Lansdown at 4.3 per cent and Teachers Building Society at 4.2 per cent.
Always check the terms and withdrawal allowances with any new ISA before opening it.
Best easy access savings accounts
Easy access accounts are what they sound like – you can put money in and take it out at any time.
Cahoot, which is part of Santander, is offering 5 per cent on balances up to £3,000 - anything over that amount earns zero interest, so it’s good if you have an amount you can sit aside for a while. The account lasts for a year then reverts to a lower interest savings account.
For higher amounts, Chase is still offering their 4.5 per cent savings account, which requires you to open a current account to access - itself offering cashback and other perks. It’s boosted for 12 months, and you need to open it within a month of joining Chase.
Some other banks will give you a higher rate if you hold a current account with them, but they may need to be paid accounts or have a minimum holding, so check which suits your needs.
There’s another limited option to mention: Revolut is currently offering a 5 per cent savings account, however – it’s only available to new customers, and it only lasts until December. Still a good rate to that point if you’re eligible, of course.
Best fixed-rate savers
A fixed-rate saver, or bond, means you get the certainty that the rate won’t be changed even if the Bank of England moves the base rate – but the trade off is usually that you cannot access your cash (at least, not without penalty) until the allocated period has passed. Then, you get your initial cash and the interest payment in one go.
For one-year savers, the best rate right now comes from Marcus (part of Goldman Sachs) which offers 4.9 per cent. You have 14 days to add your cash after opening.
MBNA offer 4.75 per cent and NS&I’s British Saver Bonds offer 4.69 per cent (Guaranteed Growth Issue 90).
For two years, NS&I are at 4.67 per cent and GB Bank offer 4.82 per cent, with 21 days to put your cash in after opening. Afin Bank offer 4.85% for both two- and three-year saver rates, though if you are considering locking away cash for three years or more we recommend considering whether long-term investing might be better for your financial requirements, as investing can offer better returns than saving over longer periods.
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