As inflation continues to push up the cost of living, savers are finding that a handful of easy‑access accounts and cash ISAs are now paying around five percent interest. With £3,000 tucked away, that translates to roughly £150 of earnings over twelve months – a welcome boost for anyone watching their budget. The rates quoted are correct at the time of publishing but can shift quickly, so it’s worth checking any limits or bonus periods before committing.
Easy‑access savings accounts leading the pack
Three providers have broken the five‑percent barrier for instant‑access savings. Cahoot, which is owned by Santander, offers a flat five percent but only on balances up to £3,000; after a year the account closes, so savers who max it out earn the full £150. Starling Bank has launched a new five‑percent account that carries a six‑month bonus; after that the rate falls to 2.5 percent, giving an effective annual return of about 3.8 percent on a £3,000 deposit. Lemfi mirrors Starling’s structure – five percent for the first half‑year, then 3.04 percent thereafter.
Below the headline rate, a few alternatives still sit comfortably above four percent. Zopa Bank pays 4.56 percent but limits customers to three withdrawals a year. Tembo matches that figure and adds an extra one percent for anyone who also takes out a mortgage through them. Cynergy Bank offers a straightforward 4.55 percent with no withdrawal caps or frills. Chase, which introduced a regular saver earlier in the week, still holds a 4.5 percent easy‑access deal for new customers.
Cash ISAs where interest stays tax‑free
Because ISA interest is free of tax, the competition for the top cash ISA has been fierce throughout 2026. Trading 212 currently leads with a 4.6 percent rate for new customers, complete with a twelve‑month bonus that is exclusive to Independent readers. The ISA is flexible, meaning money can be withdrawn and replaced within the same tax year without losing any of the annual allowance.
Close behind are Moneybox and Chip, both offering 4.56 percent, and Plum at 4.55 percent. Each of these comes with a twelve‑month bonus, but the small print varies: Moneybox restricts savers to three withdrawals annually, Chip requires the account holder to be a completely new customer, and Plum demands that the account stay open for twelve consecutive months to keep the bonus. As with all variable rates, these figures can change once the promotional periods end.
Fixed‑term bonds for those who can lock money away
For savers willing to tie up their cash, fixed‑term bonds guarantee a set return for the length of the term. One‑year options are headed by Union Bank of India (UK) at 5.12 percent, with thisbank offering 5.10 percent on the same period and also extending that rate to a fifteen‑month product.
Two‑year leaders are OakNorth Bank and DF Capital, both advertising 5.15 percent. If a three‑year horizon is preferable, thisbank tops the list at 5.18 percent, closely followed by Chetwood Bank at 5.17 percent and Aldermore at 5.16 percent. Longer‑term bonds are available too, though the article notes that, once money is locked away for several years, it may be worth considering whether a portion could be better placed in investments where capital is at risk but potential returns are higher.
Why it Matters
With everyday expenses climbing, the chance to earn five percent on readily accessible savings offers a tangible way to soften the squeeze on household budgets. For many, £150 extra a year – earned without taking on market risk – can cover a month’s groceries, a utility bill, or contribute toward an emergency fund. The variety of options, from instant‑access accounts to tax‑free ISAs and guaranteed fixed‑term bonds, means savers can pick a product that matches their need for flexibility, tax efficiency, or certainty. As interest rates continue to respond to broader economic pressures, staying informed about the best current deals helps ensure that cash isn’t left languishing in low‑yield accounts.
