While the Bank of England Base Rate remains at a 15-year high of 5.25 percent, banks and building societies continue to offer savers competitive returns on their money.

While savers aren’t able to cash in on the peak interest rates seen in the summer, some savings accounts are still paying rates of up to eight percent and a significant number of people are missing out.

According to Paragon Bank, nearly one in six fixed and instant access accounts opened in the 12 months to August 2023 offered a rate of 1.5 percent or less.

Challenger banks have been holding the top spots across a number of sectors, however, Rachel Springall, finance expert at Moneyfactscompare.co.uk noted: “They also act quickly to pull offers when they become fully subscribed. Consumers will need to act quickly to grab the top deals on offer and consider the more unfamiliar brands when comparing deals.”

There are a range of different accounts suitable for a variety of needs – from easy access accounts to fixed term savers – and some are still offering particularly attractive rates. Here are the top accounts on offer this week.

Top easy access savings accounts

Easy access accounts are typically more flexible, as these allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements. Given the current high-living-cost environment, a survey from Hodge found more than half of respondents have had to dip into their savings for everyday expenses.

Topping the leaderboard of easy access savings accounts offering the highest interest rate is Metro Bank’s Instant Access Savings Account with an Annual Equivalent Rate (AER) 5.22 percent. At least £500 must be deposited within 28 days to earn the limited edition rate and interest is paid monthly. Access is allowed at any time in a branch, online, or by phone.

Ulster Bank’s Loyalty Saver falls just behind with an AER of 5.2 percent on deposits of over £5,000. Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent. Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.

For savers with a smaller deposit, Hampshire Trust Bank’s Online Easy Access account(Issue 15) places just behind with an AER of 5.15 percent. The account can be opened with just £1 and up to £250,000 can be invested overall. Interest is paid annually and unlimited withdrawals are permitted.

Top fixed rate savings accounts

Fixed-rate savers can be beneficial during the current period of falling rates, as these enable people to lock in an interest rate for a set length of time. However, they typically impose stricter withdrawal limits on customers, meaning savers should be comfortable investing money without needing to access it during the account term.

Metro Bank tops the table for one-year fixed savings accounts with an AER of 5.8 percent. The account can be opened with a minimum deposit of £500 and interest is paid annually. Up to £2million can be invested overall and withdrawals are not allowed until the term ends.

For two-year fixes, the Union Bank of India takes the top spot with an AER of 5.7 percent. The account can be opened with £1,000 and interest is paid on maturity. Up to £1million can be invested overall and withdrawals are not permitted.

Hanley Economic Building Society takes the lead for three-year fixes with an AER of 5.35 percent. The account requires a minimum deposit of £1,000 and interest is paid on maturity. Up to £75,000 can be invested and withdrawals are not permitted until the term ends.

Meanwhile, JN Bank tops the list for four, and five-year fixes with its Fixed Term Savings Account offering an AER of 5.3 percent and 5.35 percent respectively. The accounts can be opened with a minimum deposit of £1,000 and interest is paid annually and on maturity. Up to £500,000 can be invested overall and withdrawals are not permitted.

Regular savings accounts

Regular savings accounts can be a good option for those looking to get into a savings habit, as these accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.

Nationwide remains top of the regular savings account market with an AER of eight percent. The rate is fixed for 12 months and Britons can get started with just £1.

Interest is calculated daily and paid on maturity of the account exactly one year after opening. The rate is based on how many withdrawals a person makes in the year – if four or more are made, interest will drop to 2.15 percent. Savers can deposit up to £200 per month and savers must have a Nationwide Current Account to apply.

Online-based bank first direct falls just behind with an AER of seven percent. The rate is fixed for 12 months and Britons can get started with just £25.

Interest is calculated daily and paid on maturity of the account exactly one year after opening. Savers can deposit between £25 and £300 per month in multiples of £5. Withdrawals are not permitted throughout the 12-month term. In the event of this, the account will have to close and interest will be paid up to the closure date at the Savings Account variable rate instead.

Gatehouse Bank is also offering a competitive Expected Profit Rate of seven percent for 12 months. Gatehouse Bank operates under Sharia principles, which means profit is earned instead of interest. The account can be opened with a minimum deposit of £1 and people can save up to £300 a month. Profit is paid on maturity and withdrawals are not permitted until the term ends.

Top cash ISAs

Cash ISAs are a particularly popular option, as these accounts enable savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA). However, some ISAs can come with a few more restrictions, like penalty charges for early access or transfers.

For those who need instant access to their cash ISA, Metro Bank tops the list with an AER of 5.11 percent. There is no minimum investment amount, interest is paid annually, and withdrawals can be made at any time.

For those looking for a fixed rate, Metro Bank is also topping the list for one-year fixes with an AER of 5.71 percent. There is no minimum investment amount to get started, interest is applied annually, and a charge equivalent to 180 days’ interest will be applied in the instance of an early withdrawal.

Savers will be able to have more than one of the same type of ISA. They will also be able to transfer part of their savings between different providers during the year, and there won’t be a need to reapply for an existing dormant account. However, the limits for different types of ISAs will remain the same (£20,000 for cash and stocks and shares ISAs, £9,000 for a junior ISA, and £4,000 for a Lifetime ISA).

Adam Thrower, head of savings at Shawbrook commented: “The Chancellor’s announcement to allow people to save into more than one Cash ISA a year should be welcomed.

“It will enable savers to truly benefit from the higher rates on offer. Currently, although savers can ask a provider to transfer old ISA deposits while keeping the tax-free status, it can feel like another barrier. Allowing them to take advantage of higher ISA rates across more than one option gives them the potential to make more from their money.”

Lucinda O’Brien, Money.co.uk’s savings expert said: “The good news is that ISAs will soon become a lot more flexible and savers will be able to chase the best rates easily. So, it’s a good idea to explore this savings account now and keep an eye on the rates before the changes in April.

“Unfortunately, the days of six percent rates have disappeared, but it’s still worth comparing saving accounts to find the best deal.”