Best UK Savings Accounts July 2025 | Up to 7.5% Interest

Last updated: 18 July 2025
Reading time: 6 minutes

Disclaimer: This guide is for educational and informational purposes only. It does not constitute financial advice, and we are not authorised to provide personal recommendations. Interest rates change frequently. Always verify rates directly with providers and seek independent financial advice suited to your personal circumstances.

Quick Summary - July 2025 at a Glance

• Top easy access rate: Chase (5.00% AER, includes 12-month bonus)
• Top regular saver: Principality (7.50% AER, 6-month term)
• Best fixed bond: Oxbury (4.62% AER, 6-month term)
• Best Cash ISA: Trading 212 (4.10% AER, variable rate)
• Base rate: 4.25% (held steady, with expected cuts in August and November)

What's Changed Since June 2025

Key rate movements:

• New leader: Principality launches 7.50% regular saver -- highest rate for new customers
• Chase tops easy access charts: 5.00% AER with 12-month bonus
• Moneybox ISA drops: From 5.46% to 4.65%, now out of top tier
• Atom Bank holds steady at 4.75% but now behind Chase
• New entrants: Snoop (4.60%), Trading 212 (4.10% ISA), and other specialist options.
• BoE holds base rate at 4.25%, but further cuts are expected

Market trend: Regular savers now offer the highest returns. Easy access competition has intensified. Some top rates include temporary bonuses.

Why UK Savings Accounts Still Beat the Base Rate

Despite the Bank of England maintaining the base rate at 4.25%, the best savings accounts are still offering 4% to 7.5%, well above inflation and standard current account rates.

Most UK savers keep their money in accounts earning between 0.1% and 1%. With average savings at £16,067, that earns just £80 a year at 0.5%. In a 5% account, that figure jumps to over £800 --- a difference of £720 annually.

This matters especially during the ongoing cost-of-living crisis. One in six UK adults have no savings. Nearly a quarter have under £200. Those who are saving should ensure every pound works harder.

Current Best Savings Rates -- July 2025

Account Type	Provider & Product	Interest Rate (AER)	Requirements	Restrictions
Easy Access Saver	Chase Saver Account	5.00%	Must open Chase current account	Includes 2.25% bonus for 12 months
Easy Access Saver	Atom Bank Instant Saver Reward	4.75%	Open Atom app account	Drops to 2.50% if you withdraw that month
Easy Access Saver	Snoop Easy Access Account	4.60%	App sign-up	No notable restrictions
Cash ISA	Trading 212 Cash ISA	4.10%*	Open Cash ISA, variable tracker rate	Rate can change at any time
Notice Account	RCI Bank 95-Day Notice Account	4.60%	Apply online, £1,000 minimum deposit	You can't close your account or make any withdrawals without providing 95 days' notice
Fixed Saver	Oxbury Bank 6-Month Bond (Issue 6)	4.62%	Lock funds for 6 months	No withdrawals allowed during the term
Regular Saver	Principality 6-Month Regular Saver	7.50%	Max £200/month, new customers only	No withdrawals allowed during the 6 months
Regular Saver	Zopa Biscuit Regular Saver	7.10%	Must open Zopa Biscuit current account, save up to £300/month	App-only, variable rate
Regular Saver	First Direct Regular Saver	7.00%	Requires First Direct current account	Fixed 12 months, £25--£300/month
Regular Saver	Co‑operative Bank Regular Saver	7.00%	Linked to Co-op current account	Variable rate, monthly limits apply

Note: Rates are correct as of 14 July 2025 and can change at short notice. Some include introductory bonuses that reduce after the first year. Always confirm details directly with the provider.

How UK Savings Interest Is Taxed

Personal savings allowance:

• Basic rate taxpayers (income under £50,270): £1,000 interest tax-free
• Higher rate taxpayers (£50,270--£125,140): £500 interest tax-free
• Additional rate taxpayers (over £125,140): No tax-free allowance

Examples:

• Nurse earning £35,000 with £15,000 savings: At 4.4%, earns £660 in interest --- no tax owed.
• Manager earning £85,000 with £30,000 savings: At 4.4%, earns £1,320 --- pays tax on £820, roughly £328 at 40%.

ISAs remain fully tax-free, making them especially valuable for higher earners or those with large savings balances.

Not sure where you stand? Use the TellMyTax calculator to find your personal tax band and estimate interest tax.

When Switching Makes Sense

Examples:

• £1,000 at 0.5% = £5/year vs at 5.0% = £50/year
• £10,000 at 0.5% = £50/year vs at 5.0% = £500/year
• £30,000 at 0.5% = £150/year vs at 5.0% = £1,500/year

Regular Saver Examples:

• £200/month at 7.50% = £1,200 saved, earns £45 in 6 months
• £300/month at 7.10% = £3,600 saved, earns £127 in a year

You should consider switching if:

• Your current rate is under 2%
• You've earned less than £200 interest on £5,000+ savings
• You haven't reviewed your savings products in over 6 months
• You're saving monthly and want to maximise your returns

How to Switch Safely

Credit score protection:

• Open only 1--2 new accounts every 6 months
• Space applications 6--8 weeks apart
• Use soft search eligibility tools before applying
• Prioritise accounts that fit your actual needs, not just headline rates

Timeline to expect:

• Online application: 10--15 minutes
• Account setup: 3--7 working days
• Money transfer: Same day to 3 working days
• ISA transfers: Up to 15 working days (use formal transfer to preserve tax-free status)

Frequently Asked Questions

Are these rates guaranteed?
No. All variable rates can change. Some include temporary bonuses --- always check what happens after those end.

How long does switching take?
Most online applications take 10--15 minutes. Account setup takes 3--7 working days. ISA transfers may take up to 15 working days.

Is my money safe?
Yes. All listed accounts are FSCS protected up to £85,000 per UK banking group.

What if I need access to my savings?
Easy access accounts allow flexible withdrawals. Regular and fixed-rate accounts often have penalties or restrictions.

Do I need to pay tax on my savings?
Only if your interest exceeds your personal allowance. ISA interest is always tax-free.

Should I choose an ISA or a regular savings account?
Use ISAs if you're near or over your tax-free allowance. Regular savers often offer higher interest but have monthly limits.

Can I open multiple savings accounts?
Yes you can hold multiple easy access or regular savers.

What is AER vs gross rate?
AER reflects what you'd earn with interest compounded over a year. It's the best rate for comparing savings products.

What about bonus rates?
Some products include short-term bonuses (e.g. Chase's 2.25%). Check the ongoing rate once the bonus period ends and set a reminder to review your account.

Final Thoughts

Rates remain competitive but with base rate cuts expected later in 2025, the window to lock in high returns may be closing. Moving your money from a 0.5% account to one paying 4.6% could earn you an extra £205 per year on £5,000. For monthly savers, the 7.5% Principality account could add £45 in just 6 months.

Regular savers now offer the highest interest rates, ideal for building up savings month by month.

We'll be back in August with updated rates and the latest on any changes from the Bank of England. For updated guides visit our blog.

Reminder: Always confirm rates directly with the provider before applying. This guide is not financial advice.