This comparison simply includes all savings accounts.
Best Savings Accounts For £100,000
Why we like it: Fee Free Account. An everyday current account. Great money management tools with our mobile banking app. ‘Criteria Apply’. Multiple ways to pay: Apple Pay, Google Pay™ and Contactless Visa Debit Card. Limits apply. Arranged overdraft available (subject to eligibility). No monthly fee. Defaqto 5* rated. Must be 18 or older and UK resident. Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable. To get the £100, use the Current Account Switch Service to close your account held elsewhere and switch by 5pm on 2nd December 2021. Then pay in at least £1,500 in total and log into Online or Mobile Banking by 13th January 2022. To get a further £50 you have to make at least 10 eligible debit or credit transactions each month between 1st January 2022 and 30th September 2022. Offer T&Cs apply. Account eligibility criteria apply. Apply online only
Why we like it: Earn £4 a month back in Rewards by making a minimum of 2 direct debit payments of at least £2 each, or earn £1 a month in rewards with 1 mobile app login. Earn Rewards that you can redeem as cash back, gift cards or e-codes with our retail partners. Great money management tools with our mobile banking app. ‘Criteria Apply’. Arranged overdraft available (subject to eligibility). Multiple ways to pay: Apple Pay, Google Pay™ and Contactless Visa Debit. Must be 18 or older and UK resident. Customers need to pay at least £1,250 into any eligible personal current account every month (excludes transfers between your own accounts). Must not currently hold 2 Reward accounts. £2 monthly fee. Representative example: If you use an arranged overdraft of £1,200 you’ll be charged interest at 39.49% EAR variable. To get the £100, use the Current Account Switch Service to close your account held elsewhere and switch by 5pm on 2nd December 2021. Then pay in at least £1,500 in total and log into Online or Mobile Banking by 13th January 2022. To get a further £50 you have to make at least 10 eligible debit or credit transactions each month between 1st January 2022 and 30th September 2022. Offer T&Cs apply. Account eligibility criteria apply. Apply online only
Why we like it: No minimum monthly funding or monthly fee to maintain the account. Earn up to 15% cashback with Retailer Offers. Stress-free account switching in 7 days with the Current Account Switch Service. £300 ATM withdrawal per day, Arranged Overdraft facility (subject to status). Online and Mobile Banking with text and email alerts. Must be 18 or older and live in the UK permanently. 39.94% EAR overdraft charge. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000. £130 cashback when you complete a full switch to a Santander Everyday Current Account within 60 days, set up 2 Direct Debits, pay in £1,000 and log into Online or Mobile Banking. T&Cs apply.
Why we like it: SPECIAL OFFER - £100 for SWITCHING to a First Direct 1st Account. Access to Regular Saver Account paying 1.00% AER/Gross fixed for 12 months if saving between £25 and £300 a month (up to £3,600 per year). £250 interest-free overdraft (subject to status). No minimum monthly funding and no monthly account fee. Mobile banking app. UK based contact centre. To qualify, switch using the Current Account Switch Service, deposit £1000 within 3 months of account opening. New customers only that have not opened a HSBC account on or after 1 Jan 2018
Why we like it: SPECIAL OFFER - Get £110 + £30 Uber Eats voucher or The Dining Out Gift Card when you switch to an HSBC Advance Bank Account. Earn 1.00% AER/gross when you save between £25 and £250 per month. Arranged overdraft limit of at least £1,000 on account opening. Money banking app. No monthly account fee. Easy switching with the Current Account Switch Service. Must be 18 or older and be UK resident. Must pay in £1,750 per month or £10,500 over 6 months. Must be approved for an arranged overdraft of £1,000+. Get the £110 when switching to an HSBC Advance Account as a new customer using the Current Account Switch Service within 30 days of account opening, with at least 2 Direct Debits or standing orders. Eligibility criteria and T&C's apply. Offer may be withdrawn anytime. Offer isn’t available to customers who have held a HSBC current account, or opened a first direct account since 1 January 2018. Offer ends 31st October 2021
Why we like it: SPECIAL OFFER - £130 cashback when you switch to a Santander 123 Current Account. Earn 0.30% AER (variable) interest on balances up to a maximum of £20,000. Up to 3% cashback on household bills - 1% on council tax bills, Mobile and home phone bills, broadband and paid-for TV packages, and Santander monthly mortgage payments. 2% on Gas and electricity bills, Santander Home Insurance premiums and Santander Life Insurance premiums, and 3% on water bills. Monthly fee of £4. Cashback capped at £5 for each cashback tier each month. Must pay in £500 pm. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000. £130 cashback when you complete a full switch to a Santander 123 Current Account within 60 days, set up 2 Direct Debits, pay in £1,000 and log into Online or Mobile Banking. T&Cs apply.
Why we like it: Free current account. Pays 0.05% AER interest on balances up to £85,000. Get set up in minutes. Send money abroad: Fast and secure money transfers to bank accounts in 38 countries worldwide. No fees when you pay with your card abroad or withdraw money. Get a spotlight on your spending: See what you’ve spent instantly with real-time payment notifications. 3 month interest holiday on the first £500 of an arranged overdraft. Best British Bank and Best Current Account in 2020 at the British Bank Awards. Awarded 5 stars by Defaqto. Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000
Why we like it: Up to 3% cashback on selected household bills, capped at £5 for each cashback tier each month. Earn up to 15% cashback with Retailer Offers. Easy to manage online or on mobile app. Get access to a range of 123 offers. Arranged Overdraft facility (subject to status) - 39.94% APR / EAR (variable). Must be 18 or older and UK resident. Customers must pay a minimum of £500 into account each month, have 2 active Direct Debits, log onto Online or Mobile Banking at least once every 3 months. Must not currently hold 2 Reward accounts. £2 monthly fee. £130 cashback when you complete a full switch to a Santander 1|2|3 Lite Current Account within 60 days, set up 2 Direct Debits, pay in £1,000 and log into Online or Mobile Banking. T&Cs apply
Why we like it: Can be opened by or on behalf of any child up to the age of 17. Debit or cash card available for those aged between 13 and 17. Monthly interest. No monthly fee. For children under age 13, the account must be opened in trust and managed by an adult (trustee). If you’re aged between 13 and 17 years old and live permanently in the UK you can apply online by telephone or in branch. No overdraft facility. 1% interest on the entire balance once the balance is £100, 2.00% AER/1.98% gross (variable) on the entire balance once the balance is £1,500, 3.00% AER/2.96% gross (variable) on the entire balance once the balance is £1,500 or over (up to a maximum of £2,000). Bank is registered with the Financial Services Compensation Scheme (FSCS), so any money you keep will be fully protected, up to £85,000
Why we like it: A bank account that can build credit history. No credit check during sign up. Apply straight from your mobile. Instant online decision. Get your Contactless Debit Mastercard within 3-5 working days. Add Creditbuilder onto your account and it could help build your credit rating at no extra cost. Deposit cash into your account at any Post Office UK branch. Money is available in your account immediately. Manage your account 24/7 from any device with the banking app - get real time balance information, statements, add payees send payments and apply for extras. Automatic payment alerts. UK based Customer Services Team. Your money is protected up to £85,000 by the FSCS (Financial Services Compensation Scheme)
Why we like it: Instant access to your savings. Unlimited deposits and withdrawals. Interest paid monthly, either to a linked current account, or adding it to your Online Flexi Saver account. Easy application process, you just need a UK mobile phone and UK driving licence or passport. Manage account online. Maximum balance £250,000. Must be aged 18 or older and have a UK address. Must have a linked UK current account. Your eligible deposits with Investec Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: 0.60% AER if customer makes two or fewer withdrawals within an anniversary year. Monthly or annual interest. Manage your account online. Covered by the FSCS. If a customer makes three or more withdrawals in an anniversary year the rate reduces to 0.10% from the date of the third withdrawal. Must be UK resident and be aged 18 or older
Best Savings Account For £100,000
Historically banks and building societies often provided higher rates of interest for larger deposits e.g. £100,000+
With interest rates falling on savings accounts to record lows few banks provide incentives for higher deposits. Banks are more interested in lending money than paying interest to savers.
See above for a selection of accounts that pay relatively high interest from instant access to fixed rate bonds.
If you need to find out the best savings options for your £100,000, you may want to use a combination of the savings accounts below. By splitting your £100k over a number of accounts you could access the best interest available.
However, before you do so, you should familiarise yourself with some of the factors that may affect your decision as to where to deposit your savings.
Savings accounts have had relatively low interest rates in recent memory. This is because the majority of savings accounts interest rates are dependent on the Bank of England base interest rate, which is currently close to historic lows.
It is no surprise that many people have considered other options to cash to get the income yield they need.
If protecting your money is paramount then you should review the savings accounts options available to you.
This is because the majority of savings accounts are protected by the Financial Services Conduct Authority (FSCS). Therefore, any savings from £1 to £85,000 (£170,000 for joint accounts) is fully protected.
This means that if something happens to your bank, building society or credit union then you will receive your entire capital within 7 days.
This added protection gives you peace of mind and allows you to slowly build your savings, without having to worry about its safety.
Extent of FSCS protection
Bear in mind that some banks are a part of bigger organisations, which may also have other brands offering banking services.
Even in the event that the bank is a part of a bigger organisation, the FSCS protection will stretch over all of the brands. However, it should be noted that it will only protect up to £85,000 of the savings.
For example, if you have £50,000 in one bank and £50,000 with another bank under the same organisation then you are only guaranteed protection on the first £85,000.
In light of this, if you wanted your entire £100,000 to benefit from FCSC protection, you would have to split it between two separate banks with two separate banking licences.
Alternatively, you could open a joint account with another party to ensure your £100,000 is fully protected. If you decide to do this, you should be aware that the other party would be able to access the £100,000 without your permission.
If you are looking to get the best return on your £100k through savings accounts, then you should bear in mind that you may have to pay tax on the interest you earn.
From April 2016, basic rate tax payers can earn up to £1,000 in interest before being subject to tax. For higher rate tax payers, they can earn up to £500 tax-free interest in a savings account.
This is important to keep in mind, especially if you want to get the most out of your capital, as it could affect your overall return from your savings.
Minimising the effect of tax with an ISA
ISAs are a great way to avoid the effect tax has on your savings. This is because ISAs allow you tax-free interest, on deposits up to an agreed yearly limit.
For the 2017/18 tax year the agreed limit for an adult is £20,000 and £4,128 for anyone between 16 and 18 years old.
You could use the annual allowance to earn tax-free interest for years to come by depositing £20,000 on an annual basis in an ISA.
Alternatively, if you wanted to deposit as much of your £100,000 this year as possible, you could utilise the other ISA allowances in your family.
For example, you could deposit £20,000 in your ISA and £20,000 in your partner's ISA and £4,128 for any members of the family aged between 16 and 18 years old.
Types of ISA
The majority of banks or building societies will offer two different ISAs.
Instant access cash ISAs: These allow you to withdraw money whenever you need without paying a penalty, making them ideal for short term saving.
Fixed term ISAs: These require you to not withdraw your savings from your ISA for a prolonged period of time.
Fixed term ISAs have similar conditions to fixed rate bonds, so you may be unable to withdraw money until they reach the end of their term or have to pay a penalty in order to do so.
ISAs do not always offer the best interest rates, so you will need to assess whether any tax savings will outweigh the benefits of the higher interest rates provides by other types of accounts.
Instant access savings accounts
You may have maxed out your ISA allowance for this year and have some savings remaining or you may decide that the potential to access higher interest rates outweighs the benefits of tax-free earnings. Whatever the case may be, instant access savings accounts do offer an attractive option for savings.
An instant access savings account allows you to withdraw from your savings at any time. This allows you to remain flexible with your savings.
However, it is important to bear in mind that in exchange for this flexibility you may earn less interest than other accounts available on the market.
Therefore, if you are confident that you will not need your savings in the near future, an instant access account may not be the best account to split some of your £100,000 savings in.
Easy access savings accounts
There are some banks that offer easy access savings accounts. In general, these accounts are extremely similar to instant access accounts. The one common difference between easy access and instant access accounts is the delay on withdrawal.
A withdrawal from an easy access account can sometimes take a few days. If you are unlikely to need your savings, then an easy access account may not be the best way to grow your savings.
Traditionally, current accounts have not had the most competitive interest. However, nowadays banks are offering competitive interest to entice people to switch their current accounts.
Although these high interest current accounts come with conditions such as minimum balance and a compulsory number of direct debits, if you are able to satisfy the requirements, you could access higher interest than other accounts on the market.
It is not advisable to deposit your entire £100,000 savings into a current account, as they usually have a threshold over which they will not pay interest. But you could deposit a smaller amount and benefit from competitive interest. You could then deposit any remaining savings into another option.
Fixed Rate Bonds
If you are prepared to tie up your savings for prolonged periods, you could explore fixed rate bonds.
Fixed rate bonds offer some of the highest interest available, which is guaranteed for the life of the bond, on the proviso that you do not make a withdrawal for the fixed term.
Typically, the longer fixed rate bonds provide the higher rate of interest. The majority of fixed rate bonds tend to run between 1 and 5 years.
In the event you do want to withdraw your savings from a fixed rate bond, you will often have to give written notice and incur a penalty. Note that the penalty can sometimes be a number of days' worth of interest, which may reduce your savings considerably.
If you need access to your savings in the near future, but want to benefit from the higher interest of a fixed rate bond, you could take advantage of the shorter fixed rate bonds that banks have started to offer. These types of fixed rate bonds run between 6 and 18 months, but their interest rates are much lower than the longer bonds.
National savings is another route to access competitive interest. National savings and investments (NS&I) are a government agency that offers a range of products for people to get potentially healthy returns.
When you deposit or invest your savings with NS&I you are lending your money to the government.
The products available are constantly changing, but the NS&I usually have some of the following:
- Income Bonds
- Premium Bonds
- Direct ISA (a Cash ISA)
- Guaranteed Equity Bonds
- Direct Saver – a savings account
- Fixed Interest or Index-Linked Savings Certificates
- Guaranteed Growth Bonds and Guaranteed Income Bonds
The degree of access you have to the money you deposit will be determined by the product itself.
For example, you will be able to make a withdrawal without charge in NS&I savings account, whereas you may incur an early encashment penalty if you try to withdraw from a premium bond.
Whatever you intend to do with your £100,000 savings, it may be worth reviewing some of the options above.
Devising the best savings strategy can be the difference between getting the most of your capital and losing money in real terms.