Savings Rates Remain High: Where Should You Save?

UK Savers Hold Their Nerve As Rates Buck Expectations

Hey there! Looking after your money in 2025’s turbulent financial market can feel like a real challenge. Good news – despite a recent base rate cut by the Bank of England, savings rates are holding up much better than most people expected. So, if you’re keen to make your hard-earned cash work harder, let’s walk through your best options right now.

Why Are Savings Rates Staying High?

You might have expected savings rates to drop after the base rate cut, but that hasn't happened across the board. According to Anna Bowes, personal finance expert at The Private Office, “Although many economists still seem to think there could be two base rate cuts this year, the markets seem to think there will be only one. That could be a key reason that certainly the best rates on offer are holding up well.”

In simple terms: Banks and savings platforms are competing for your business. That competition translates into better rates for you.

Top Performing Accounts Right Now

Let’s break down some of your options:

Best Easy Access Savings

• Chip App: Top of the list, paying an impressive 4.77% (with a catch: more than four withdrawals per year and your rate falls by 2.10%).
• Heads Up: This account is app-only and comes with a 12-month bonus of 1.47%. Make sure you check the terms for any hidden catches.

Fixed-Rate Bonds

Not much movement here, but reliable options are still around:

Term	Top Rate
1 year	4.44%
2 years	4.42%
3 / 5 years	4.43%

Bowes points out that "locking in now could have you congratulating yourself in the future – especially if rates do drop further!"

Fixed-Rate ISAs

• 1-year & 2-year rates: Steady
• Best 5-year rate: UBL UK now leads with 4.17%, just ahead of Secure Trust Bank’s 4.16%.
• 3-year options: UBL UK and United Trust Bank, both still at 4.17% after Ford Money’s withdrawal.

Easy Access Cash ISAs

There’s a genuine rate race going on among financial apps:
• Chip: Raised its easy access ISA rate to 4.99% for new customers.
• Plum: Not far behind, offering 4.98%. Your cash could be with a trio of banks including Citibank, Lloyds, and QNB.
• Moneybox: Also in the contest with headline rates.

Note: Both Chip and Plum are financial apps, not traditional banks – always check where your money is ultimately being held.

What Should Savers Watch Out For?

• Bonus Rates and Small Print: Many top rates include a short-term bonus or strict withdrawal limits. Missing these details means you might not get the returns you expected.
• Deposit Protection: Confirm that your savings are protected by the FSCS (Financial Services Compensation Scheme) if possible, especially when using less familiar app-based accounts.

Helpful Takeaways For Your Next Steps

• Shop around: Don’t settle. New rates pop up frequently as providers battle for your savings.
• Check your terms: The highest rate isn’t always best if the account has restrictions you can’t work with.
• Consider a mix: If you’re unsure about locking your money away, combine a fixed-term account with an easy-access savings pot.

"This is a good illustration of the need to read all the terms and conditions so that you earn the interest you expect to." – Anna Bowes, The Private Office

Ready To Take Action?

With competition still fierce and rates surprisingly resilient, now is a great time to review your savings and potentially move your money. Take a closer look at both rates and terms, and don’t be afraid to switch if you spot a better deal.

If rates do fall later in the year, you’ll be glad you secured today’s best options. Want to keep up with the latest changes? Bookmark a reliable money news blog and check in regularly. Happy saving!