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Martin's Savings Masterclass
New. Top 4.75% easy-access savings now available. Check & boost what you earn now
Includes full savings, fixes & cash ISA best buys... 

Two things happening right now make it worth all savers examining if you're maxing out the possible interest...

a) We've just seen a new top 4.75% easy-access savings account launched, on top of a host of other hot easy-access deals. 4.75% is the highest since summer, when base rates were cut, so for safety's sake, CHECK NOW what your savings pay to see if you can switch to a better rate.

b) Last week's inflation numbers weren't quite as bad as expected, holding at 3.8%, so while most analysts suggest the Bank of England will hold the UK base rate at 4% in its meeting next week, they think it's more likely they'll be cut either in the Dec or Feb meeting to 3.75%. This is unlikely to yet be reflected in savings rates, so it's a good time to do it.

Below I'll run you through the top deals & key info on... 
- 4.75% easy-access (variable) savings: Withdraw when you want.
- 4.5% fixed savings: Lock money away at a guaranteed rate.
- Three ways to boost your interest to up to 50%.
- Three ways to minimise tax, including cash ISAs & Premium Bonds.

... remember, you can pick 'n' mix as many savings account as you want, to combine terms that suit you.

With savings, it's important to ask yourself: 'Do I want an easy life with good rates, or am I prepared to put in more work to maximise the interest on every penny?' Be honest with yourself. Don't set out to become a SuperSaver if you won't keep it up - as then it's better to play safe and first focus on these two simple, less-effort routes...

1. New. Top bog-standard EASY-ACCESS savings pay 4.75% (variable)

Easy-access is the simplest form of savings, and right now the highest-paying form of standard savings, so...

... if you do nowt else, put all cash you don't imminently need in a top easy-access account.

That's far better than leaving it lingering at a low rate in a poor standard savings account, or worse, a zero interest current account.

- Pros: You can put money in and take it out when you want, giving total flexibility. Plus, when you need to switch, it's easy, just withdraw from your existing account and put it in the new one. 
- Cons: Rates are variable, so they move, often with Bank of England base rates, but many do also often drop them after a while, hoping you won't react. So monitor the rate (at least every few months) and be prepared to ditch & switch if needed.

Below are the current best buys. As rates can change, updates go in our top easy-access savings & top cash ISAs guides. Which is right for you depends, so read down till you find one that suits...

• Top 4.75% easy-access savings, but it's a bit of faff. App-based Zopa's 4.75%* (min £1, max £250k) includes a 1yr 1.5% fixed bonus. To get it, you must open its free Biscuit current account (there's no hard credit-check and you needn't switch bank account to do it). You'll then need to have £500+/mth going into the current account to keep the bonus rate, but if you don't want to use that account, you can get round the rule by just moving the money from another bank and then back again (or into the saver) straightaway.
  
  

  ALL SAVINGS ACCOUNTS & CASH ISAs LISTED here, including Zopa, have the full UK £85,000 savings safety protection & all interest rates are AER (annual equivalent rate).

  
  
• Two big-name 4.5% easy-access accounts with less faff. Ulster Bank (part of NatWest) 4.5%* (min £5,000, max £3m) includes a 1yr 2.75% fixed bonus - effectively a year's minimum rate guarantee, but after a year the rate will drop, so as long as you're ready to ditch & switch then, it's a simple deal. And in a way, as you know when it'll drop, unlike others which could at any point, at least there's some certainty.
  
  Chase (part of JPMorgan) 4.5%* (min £1, max £3m) includes a 1yr 2.25% bonus but only for customers new to Chase Bank - if that's you, it's a strong deal. And while, like Zopa, you also have to get it via its app-only current account (it doesn't do a hard credit-check), crucially here there's no minimum monthly pay-in, so it's easier.
  
  
• Top notice account 4.54%, but no instant withdrawals. This is a notice NOT easy-access account, but the rate is strong and otherwise it's simple, so I wanted to include it. OakNorth Bank's 4.54% variable* (min £1, max £500k) requires 95 days' notice to withdraw cash, so as long as you will know in advance when you'll need it (eg, buying a house) it's a useful option.
  
  
• Top tax-free 4.53% easy-access cash ISA. A cash ISA is just a savings account you can put up to £20,000 per tax year in, where the interest is NEVER taxed. Right now, the top payers are close to the top normal savings, and if you're likely to pay tax on savings (see below, for who that is) and haven't yet used your £20,000 ISA allowance for this tax year, they are winners.
  
  Trading 212's 4.53%* (min £1) allows unlimited withdrawals. The rate includes a 1yr 0.68% bonus for new Trading 212 customers. There's also MoneyBox 4.52% (min £500) which includes a 1yr 0.82% bonus, but you can only withdraw penalty-free from it three times a year. More options in Top cash ISAs.
  
  
• Get a FREE £100 Amazon and 6% interest on up to £4,000. This is more complex, but for savvy savers it's worth a note. Go via this link (it's not available direct) and you can currently get a £100 Amazon voucher for getting the Santander Edge current account* even without switching to it, so you needn't move bank. This pays an unbeatable 6% interest on the first £4,000 saved there. While the account costs £3/mth, the extra interest on the £4,000 easily covers that, and you also get 1% cashback (max £10/mth) on most bills paid from it via Direct Debit. More on the current account in our Santander Edge review.
  
  PS: Just want the £100 voucher but not the savings? Go for the Everyday* account which has no monthly fee or min pay-in.
  
  
• And finally... the top totally straight simple savings rate. The top no bonus, open to all, no withdrawal limits savings account is Hodge Bank 4.21% (min £1, max £250k).

2. Top FIXED-RATE savings pay 4.55% and here the rate is guaranteed not to drop.

If you want the certainty of a guaranteed rate that won't change, without needing to monitor it - this is for you. Yet you have to lock the money away to do that (except in ISAs), so most people are best to have some easy-access savings and some fixed, to get the best of both worlds. With fixes...

- Pros: Certainty. Base rate drops won't affect you. So while easy-access rates are currently higher, if the UK base rate drops as predicted, fix now and the rate you're locked in to may look very good.
- Cons: The money is usually locked away without access, so only put money in you definitely don't need to touch within that time. Plus, if rates rise elsewhere (not seen as imminently likely), you'd be stuck with this till the fix ends.

How long should you fix for? Provided you're comfortable locking the money away, the more you value certainty, the longer you should fix. It's worth noting five-year fixes are the top payers, though there are no guarantees that with hindsight fixing long will be the best option.

Also, it's worth remembering while fixed rates are... well... fixed, if UK interest rates look like they'll fall further than currently thought, the rate you'll be able to fix at in future will drop. So there is a time element to the decision, and with the sentiment having strengthened on future UK base rate cuts, that may see fixed rates shaving down relatively soon.

The basic savings building blocks are the easy-access and fixed accounts above. Yet there are some savings products paying more, that either:

a) limit who can get them; or 
b) limit the amount you can put in. 

If they apply to you, they're worth having. Think of this like a savings 'champagne' fountain. You pour your cash into the best possible product, then when it's full, move to the next one down and so on. So let's run through this in order of maximum returns...

1. Help to Save: An unbeatable 50% boost on what you save, if you work & are on Universal Credit

If you're on Universal Credit (UC), and earn anything from working, you can open a Help to Save account on the Gov.uk website. Once it's open, you can continue to use it even if you become no longer eligible for UC.

With Help to Save, you can put up to £50/mth in and, after two years, you get a 50% bonus on the max you had in - even if you've withdrawn the money. There's nowt else close to it. My wee graphic should help... 

After you get the first two-year bonus, you can do it again for two more years and get another 50% bonus. See full how Help to Save works. I get huge numbers of successes all raving about this.

2. Lifetime ISA (LISA): A 25% boost for first-time buyers aged 18 to 39

A Lifetime ISA is a tax-free savings or investment account that anyone aged 18 to 39 can open (once it's open, you can keep it going even after you're 40). Its primary use is to help first-time buyers build a deposit, though it can also be used to save towards older age. It's complex, so always first read our Top Lifetime ISAs help guide, but in brief...

• You can put in up to £4,000 each tax year until you're 50 and get a 25% bonus added to it. So, put the max £4,000 in and you get £1,000 a year added.
• This can then be used as a deposit on your first residential mortgage, as long as the property costs under £450,000.
• It's an individual product, so two first-time buyers buying together can have one each, while a first-timer can still use it even if buying with someone who's owned before.
  

A warning. There are only three ways to keep the bonus and take money out penalty-free: i) when getting a mortgage on a first home under £450,000 done via your conveyancing solicitor OR ii) once you're aged 60+ OR iii) if you die or have less than 12mths to live.

If not, withdraw and you effectively get back 6.25% LESS than you put in (see how LISA penalties work). So LISAs are only good for first-timers who know they'll buy a home under £450,000. If that's you, see our list of Top Lifetime ISA payers.

3. Regular savings accounts. Earn 7% on smaller amounts (plus a possible free £175)

As the name suggests, the top regular savings accounts give high interest on money put aside each month. You can have multiple regular savers in different places, so you can save a combined £1,000+/mth.

Some of the best rates are with accounts linked to current accounts (ie, you usually must have a provider's current account to open it). These are likely loss-leaders to win or keep your banking custom - affordable for the banks, as the amounts are small.

If you've got lump-sum savings and want these rates, just arrange to move the max amount from those savings into these each month. 

Why regular payers' interest often feels less than it is. In simple terms, it's because you drip feed money in there rather than having a lump sum all year. See my why regular savers are the best payers, but it won't be that much explanation.

There's a lot of confusion about tax on savings - so it's worth starting with my new beginners' guide to tax-free savings allowances video easy explainer on my YouTube page. Then read on...

1. There are more tax-free savings allowances than most people know

Savings aren't taxed - it's the interest on them that is. Yet even then, many needn't pay it, as there are substantial tax-free allowances:

• Your Personal Allowance: Most can earn up to £12,570 tax-free. This is how much you can earn (from anything, eg, work, pension, interest) before paying Income Tax. If your total earnings are less than that, then all your interest is therefore tax-free. For more on this, see our Income Tax Calculator.
  
  
• Starting Savings Rate: If you've low work earnings but bigger savings interest. The Starting Rate for Savings means some can earn up to £18,570 of earnings and interest combined without paying any tax on it (the link explains how).
  
  
• Personal Savings Allowance: Up to £1,000 tax-free interest if you earn under £125,000/yr. Your Personal Savings Allowance (PSA) is on top of the allowance above - it's the amount of interest you can earn from ANY & ALL SAVINGS without paying tax on it.
  
  - Basic 20% rate taxpayers can earn £1,000 interest a tax year.
  - Higher 40% rate taxpayers can earn £500 interest a tax year.
  - Top 45% rate taxpayers do not get a PSA.
  
  As the top easy-access rate is currently 4.75%, you'd need roughly £21,000 to generate £1,000 interest, so only basic-rate taxpayers with more would pay tax (for higher-rate taxpayers, it's over £10,500). This, combined with cash ISAs below, means all but the biggest savers or earners needn't pay any tax on interest.

How you pay tax on savings if you need to. If you're sent a self-assessment tax form (ie, a tax return) to do each year, you do it via that. If not, and your interest is under £10,000/yr, you don't need to do anything - the tax office (HMRC) will simply change your tax code. If you get more than £10,000 interest, you'll need to do a tax return.

2. You can save £20,000 tax-free each year in a cash ISA - this is on top of other allowances

Cash ISAs are just savings accounts where the interest is NEVER taxed. Plus the interest doesn't count towards your Starting Savings Rate or Personal Savings Allowance, so it's an extra on top of those. See my 'Understanding ISAs is a piece of cake' video on my YouTube channel as a primer.

It's a crucial extra allowance, which anyone who earns or saves enough to pay tax on savings interest (or thinks they may do in future) should take advantage of. Imagine £20,000 that would otherwise be taxed, over a year, on the top easy-access accounts...

And, crucially, once you've put money in a cash ISA, it stays tax-free year after year. So you could have put £20,000 in last year, £20,000 in this tax year, and (unless the limit changes in the Budget, which may happen) £20,000 in the next tax year etc. It can end up being a huge sum. All the best buys are in the easy-access and top fixes sections above.

Don't let your money fester in poor cash ISA rates

Too many think they put their money in a cash ISA and it's stuck there. It's not - you've a right to transfer it to a new top payer. Yet don't just withdraw the cash - you'll lose its ISA status. Instead, apply for a new cash ISA, and as part of the application, you'll be asked whether you want them to transfer your existing cash ISA over...

- You don't need to be adding any money to do this.
- It doesn't use up your £20,000 allowance, only new money does that.
- Got an old fixed-rate cash ISA? See whether it's worth paying the penalty to move it via our 'Should I ditch my fixed ISA?' calc.
- Most of the top fixed & top easy-access cash ISAs allow transfers, though you don't usually get any newbie bonus.

3. You can put £50,000 tax-free in Premium Bonds - the prize fund rate is now 3.6%

I'm not the biggest fan of Premium Bonds for most people. The vast majority of those with typical luck will do better just putting money in top savings. Premium Bonds' tax-free nature, though, does mean they come into their own for people who pay tax on savings and have used up their ISA allowance.

In that case, provided you're putting a larger amount in (as you need to do that to have a decent chance of winning closer to the published prize rate), they can be a good option. For a full explanation, see our Are Premium Bonds worth it? guide.

PS: A few people have asked me about using govt gilts as a tax beneficial savings alternative. We're working on a new guide & tool for that.