How to get more than 5% interest on your savings

6 min Read Published: 09 Dec 2022

How to get more than 5% on your savings

The Bank of England increased the base rate to 3.50% in December 2022, the highest rate in almost three decades, which has seen savings interest rates increase after years of low returns on cash. In this article, we share the bank accounts offering interest rates over 5% so you can earn the most interest on your money.

For more information on the best rates in the market bookmark our savings best buy tables to stay up to date with the latest rates.

Savings accounts with rates over 5%

In the following comparison table, we compare the best accounts on the market right now with interest rates of 5% and over. For more information on the accounts, eligibility and any key features of the account see below the table.

Remember when saving money you can only earn up to £1,000 in interest, if you are a basic rate taxpayer, before you will be taxed on interest (£500 for a higher-rate tax payer). This is known as the personal savings allowance and more information can be found in our article, 'What is the personal savings allowance and how you can boost it by £5,000)'.

Best savings accounts with over 5% interest - a comparison

Savings Rate Account type  Monthly pay in amount  Easy access Bank's current account required
First Direct Regular Saver 7.00% Regular Saver £25 - £300 tick
Club Lloyds Monthly Saver 5.25% Regular Saver £25 - £400 tick tick
NatWest Digital Regular Saver 5.12% Regular Saver £1 - £150 tick tick
RBS Digital Regular Saver 5.12% Regular Saver £1 - £150 tick tick
Barclays Rainy Day Saver 5.12% Regular Saver £1+ tick tick
Principality Christmas 2023 Regular Saver Bond 5.00% Regular Saver Bond £1 - £125
HSBC Regular Saver 5.00% Regular Saver £25 - £250 tick tick
Nationwide FlexDirect account 5.00% Current account £1,000 tick tick
Halifax Kids’ Monthly Saver 5.00% Regular Saver £10 - £100 tick

 

first direct logo

First Direct Regular Saver - 7%

The First Direct Regular Saver allows First Direct personal current account holders to get 7% interest for a fixed period of 12 months. You cannot access your money within the 12-month term unless you close your account and if you do this, you will only receive an interest rate equivalent to the First Direct savings account, which is currently 0.65%.

You can only save a maximum of £3,600 a year in the First Direct Regular Saver and you can save between £25 - £300 a month. If you do not save a maximum of £300 each month you can carry over any unused allowance to the following month. If you save the maximum amount of £3,600 throughout the term you can expect to earn around £136.50 in interest. 

Who is eligible for the First Direct Regular Saver?

  • Must be a First direct current account holder
  • If you are not an existing current account holder you could get £175 for switching using the Current Account Switching Service. More information can be found in our article, 'Best bank account switching offers'.

Lloyds

Club Lloyds Monthly Saver - 5.25%

You can earn up to 5.25% for 12 months on your Club Lloyds Monthly Saver if you are a Club Lloyds account holder. You need to set up a standing order or bank transfer between £25 and £400 a month to get the 5.25% interest rate, but you can top up the amount you save each month at any time, as long as it does not exceed the £400 monthly limit. If you deposit the maximum amount each month you can expect to earn roughly £4,926.00 after the interest is paid.

If you set up a regular payment or standing order this needs to reach the account by 25th of each month. You can access your money at any time with a Club Lloyds monthly saver and after 12 months the account will change to a standard saver. The interest on this account is paid at the end of the 12-month term.

Who is eligible for the Club Lloyds Monthly Saver?

  • You need to be a UK resident and a minimum of 18 years old to open a Club Lloyds Monthly Saver
  • Must be a Club Lloyds current account holder (which comes with a £3 monthly fee) 
  • Must not have already opened a monthly saver account in the last 12 months

Natwest and RBS

NatWest & RBS Digital Regular Saver - 5.12%

You can earn 5.00% gross (5.12% AER variable) on your NatWest and RBS Regular Saver balances between £1 - £5,000. However, once you exceed £5,000 the interest rate does drop to 0.50%. You can access your money at any time with a NatWest or RBS Digital Regular Saver which makes it a good option if you think you will need your money at some point in the future. Interest on this savings account is calculated daily and paid monthly. 

You can save between £1 - £150 a month by standing order but this can be changed at any time and you can top up your monthly contribution up to the £150 limit. Additionally, it is possible to top up savings with round-ups and these round-up savings don’t contribute towards the monthly limit. If you save a maximum of £150 a month into this account your balance will be £1,849.70 and you can expect to earn approximately £49.70 in interest.

Who is eligible for the Natwest/RBS Digital Regular Saver?

  • Must be 16+ 
  • Have a NatWest/RBS current account 
  • Must be your only digital regular saving account 

Barclays

Barclays Rainy Day Saver - 5.12%

If you are a Barclays Blue Rewards member you can earn up to 5.12% on your balance up to £5,000 in a Barclays Rainy Day Saver. If you deposit the full £5,000 you can expect to earn roughly £250.57 in interest on the balance. However, if your balance exceeds the £5,000 limit the interest rate drops to 0.50%.

The Barclays Rainy Day Saver can be opened with a minimum of £1 and you can deposit a maximum of £10million. If required, you can access your money at anytime.

Who is eligible for the Barclays Rainy Day Saver?

  • Must be a Barclays Blue Rewards member (can earn cashback and rewards but must pay £5 monthly account fee) 
  • 18+ 
  • UK resident 

principality logo

Principality Christmas 2023 Regular Saver Bond - 5.00%

You can open a Principality Christmas 2023 Regular Saver Bond and earn a fixed rate of 5.00% on your balance. You can only deposit a maximum of £1,500 into the account in the 12-month period and the maximum you can pay in each month is £125. If you don't want to contribute one month, however, you will not be penalised if you do not contribute. You are unable to access your money within the 12-month account term but if you do need the money you can access it by closing the bond account.

Who is eligible for the Principality Christmas 2023 Regular Saver Bond?

  • 16+
  • UK resident 

HSBC logo

HSBC Regular Saver - 5.00%

HSBC's Regular Saver allows you to earn 5.00% interest for 12 months on a maximum balance of £3,000. You can choose to save between £25 - £250 by standing order each month and if you don't meet the maximum you can carry over any unused allowance to the following months. With an HSBC Regular Saver, you cannot access money for 12 months to benefit from the rate but you can close the account early. If you choose to close the account early you will only receive the flexible saver rate which is currently 0.65% 

Who is eligible for the HSBC Regular Saver?

  • Aged 18+ 
  • Must have one of the following HSBC current accounts: HSBC Premier, HSBC Advance, Bank Account, Bank Account Pay Monthly, HSBC Student Bank Account or Graduate Bank Account which you must maintain for the 12-month duration

Nationwide

Nationwide FlexDirect account - 5.00% on balance

Nationwide FlexDirect current account holders can earn 5% interest on current account balances up to £1,500. In order to qualify for the rate, however, you must pay in a minimum of £1,000 a month and if you don't meet this criteria the interest rate will revert to 0.25%. Nationwide account transfers do not count towards the £1,000 monthly pay in amount required. After the initial 12 months ends, the interest rate on this account will revert back to 0.25%. 

When opening a Nationwide FlexDirect account you can also benefit from a 12-month interest-free overdraft, as long as you meet the required eligibility criteria, although after the 12-month period ends this rate does increase to 39.9%. You can also access the Flex Instant Saver which has an interest rate of 2.25% for 12 months.

Who is eligible for the Nationwide FlexDirect account?

  • 18+ UK resident 
  • Personal account only 
  • Hold no more than 4 existing nationwide accounts (including both sole and joint accounts) 
  • If you’ve had a FlexDirect current account before, you won’t receive the 12-month credit interest offer or the interest-free overdraft offer again. If you are opening a joint account and have not shared a FlexDirect account with that person before you may qualify for the offer. 

halifax logo

Halifax Kids’ Monthly Saver - 5.00%

If you would like to save money on your child's behalf, the Halifax Kids' Monthly Saver has a fixed interest rate of 5.00% for 12 months. You can contribute between £10 - £100 per month by standing order and the amount must reach the account by the 25th of the month to get the interest rate for that month. You can change the amount of your standing order at any time but you don't have to contribute every month. The money in your account cannot be accessed for the duration of the term unless you close your account. After the 12 months, the money that you have saved and the interest will be transferred to the Kids' Saver account which was opened when you opened the Monthly Saver.

Who is eligible for the Halifax Kids' Monthly Saver?

  • For children 15 and under (ideal for adults who want to save on their behalf)
  • Accountholder must be 18+ and a UK resident 
  • If you aren’t a parent or legal guardian of the child you need their permission to open this account