This comparison simply includes all savings accounts.
Long Term Savings Account
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
Why we like it: 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. Easy switching with the Current Account Switch Service. Must be 18 or older and UK resident. Get the £100 when switching as a new customer and paying in at least £1,000 within three months of the account opening
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: 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: Can be opened by or on behalf of any child up to the age of 18. Debit or cash card available for those aged between 13 and 18. 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 18 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: 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: Which? Recommended Savings Provider. No notice period. Deposit from £100. Interest paid monthly or annually. Apply in minutes. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services. Compensation Scheme (FSCS)
Why we like it: Market leading 1 year fixed rate bond. Interest paid on maturity. Automatic repayment to your linked account. Maximum deposit £250,000. FSCS Protected. Must be UK resident, have a UK address and be aged 18 or older. No withdrawals permitted. Can’t have held an Investec Online Flexi Saver or Fixed Rate Saver in the last 12 months
Why we like it: Market leading 2 year fixed rate bond. Register for a free Raisin UK Account to apply for product and receive a cash bonus. Interest paid on maturity. Maximum deposit £85,000. FSCS Protected. Must be UK resident and aged 18 or older. No withdrawals permitted
Why we like it: Register for a free Raisin UK Account to apply for product and receive a cash bonus. Interest paid on maturity. Maximum deposit £85,000. FSCS Protected. Must be UK resident and aged 18 or older. No withdrawals permitted
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Compare long term savings accounts
If you want to build up savings over a long time, choosing the right account to place your money in is critical. Which account is right for you will generally depend on how much you intend to save, how long you want to save over and what kind of return you are hoping to see.
Whatever your saving goals, there are many different types of accounts which each have their own benefits and restrictions you need to consider before making a decision.
A current account may not seem the obvious choice for long term saving, but they often have the best rates of interest for smaller sums of money.
However, if you go over the limit on which your current account pays interest, you will usually earn nothing, so any balance should be placed elsewhere to receive a return. It’s also worth bearing in mind that some accounts offer a better rate of interest for an introductory period which then drops to a lower rate. This can mean your current account may not be the best option for long term saving.
If you are planning to make monthly deposits to build up savings over time, a regular savings account can be a good choice. They usually offer appealing interest rates if you are willing to wait a while for your capital to build up before you start seeing significant returns.
Please note that with a regular savings account you will usually have to make a minimum deposit each month, and there will usually be a maximum monthly limit on how much you can put in as well. You may also only be able to make a limited number of withdrawals each year.
If you have a lump sum that you won’t need in the near future, a fixed rate bond can allow you to earn a good return. They usually have very competitive interest rates which are guaranteed for the life of the bond.
The downside is that you cannot usually take money back out if you need it before the bond matures. Fixed rate bonds usually last for 1 to 5 years and can generally be started with deposits of around £500-£2,000, depending on the provider.
For most UK taxpayers, it will normally make sense to put at least part of your long term savings into a cash ISA. This allows you to earn interest without paying tax on deposits up to a certain yearly threshold set by the government. For 2017/18 that amount is £20,000.
For long term savings a fixed rate cash ISA may be the best option, as they tend to offer higher interest rates in exchange for not being able to access your money until the deposit term expires. If you want the ability to take money out at your convenience, an instant access cash ISA will allow you to do that, but the trade-off is likely to be a lower rate of return.
It’s worth bearing in mind that cash ISAs do not necessarily offer the best interest rates. This means you will need to calculate whether your likely tax savings will outweigh the extra return you would see on an account with a higher rate.
If you are looking to hedge your bets and get a decent return while still being able to access your money relatively easily, a notice savings account may make sense. They work by requiring you to give notice to your account provider when you wish to withdraw funds. In exchange, you will usually be offered a higher interest rate than other accounts which give you instant access to your money.
The notice periods on these types of accounts tend to range from 40-95 days. It is important to note that the longer the notice period often corresponds with the higher the interest rates.
Find the best long term savings account for you
With such a range of competing brands and products to choose from, finding the best one for your financial needs can be tricky. Our long term savings accounts comparison tool at the top of this page lets you easily contrast the best offer we can find from across the market. That way, you can be confident of finding the best savings account for you, whatever your personal saving goals.