A few years ago, we wrote an article on ‘how to beat pitiful savings interest rates.’ Back then the average savings interest was 0.5% AER.

With the Bank of England (BoE) base rate standing at 4% and likely to rise further, we take a look at some of the best savings accounts arounds. There’s a twist though. All of the accounts featured are digital only.

Previously, digital banking was all about current accounts, but in the race to attract new customers, many are now turning savings too.

Even Monzo and Starling, that have traditionally shied away from offering their own savings products, are now getting in on the act. This added competition brings more choice and flexibility to the consumer, not to mention some of the highest saving arounds around.

All of the accounts we cover offer full Financial Services Compensation (FSCS) on deposits up to £85,000 so you can rest assured that your money is safe.

The best easy access savings accounts

Chip – 3.4% instant access account

Launched in 2017, Chip is a savings and investment app that can be used to connect to your bank account (via open banking) and analyse your spending patterns, to work how much you can afford to save. It can then move this into a savings account. The app also features a growing number of investment products but in this article we’re only interested in its instant access saver.

Chip is the highest instant access savings account in our list. It offers full FSCS protection on customer deposits, and on the interest earned. This is worth noting as previously the earnings in the Chip Instant Access Saver were not covered by the FSCS. That was because rather than paying interest, Chip instead paid the interest as a bonus.

That all changed in February, when Chip announced it would scrap the bonus in favour of paying regular interest. This is a major boon for savers who now benefit from monthly compound interest, raising the return to 3.4% AER.

Using our link below to sign up for a Chip instant access saver will earn us a small commission and help support the site, but if you sign up via TopCashback, and deposit £5,000 or more into your account, you’ll get a £20 bonus.

Additionally, if you aren’t already a TopCashback member, using our referral link will net you an additional £10 from TopCashback themselves.


  • Highest instant access interest rate
  • Top up via debit card or Apple/Google Pay
  • Interest calculated daily and paid monthly


  • Doesn’t have unique sort code & account number
  • Can only connect to one bank account

>> Open a Chip account

Kroo brank – 3.33% current account

Kroo is one of the UK’s newest banks, gaining its banking licence in 2022 and launching its first current account in December of that year.

Unlike the other entries in our list, Kroo doesn’t offer a dedicated savings account but instead pays 3.33% AER interest on balances up to £85,000 in its current account. That makes it the most flexible and convenient accounts in our list.

As a current account, access to your money is truly instant, but it also means that you can use it for bills and other payments too. Since interest is calculated daily, by combining money set aside for your bills, with your savings, you can earn interest on money that would likely otherwise sit idle for most of the month.

We like Kroo for its simple no fuss approach to banking. There are no snags, fees, or gotchas. The account is completely free and easy to open via the app. If you’re quick you can also earn up to £30 for joining. See our Kroo bank review for more on that.


  • 3% AER on balances up to £85,000
  • Up to £30 cash back
  • Current account so truly instant access


  • No operation of finances

>> Get a Kroo Bank account

Monzo – 3.2% Instant access saver

Monzo is the largest digital only bank in the UK. It has been a hit with consumers due to its in-app budgeting features, savings pots, and the ability to access some incoming payments a day early.

Interest on savings pots has typically been provided by third parties, but in the wake of recent Bank of England rate hikes, Monzo is now offering its own 3.2% instant access savings pot making it one of the most competitive instant access savings account available anywhere.

In case you’re wondering what a Monzo pot is, it’s just a place within your account where you can keep your money separate from your main balance. Some banks achieve this by offering linked or separate accounts, Monzo does this via pots.

Another promising sign is that Monzo didn’t waste any time in announcing the increase in its interest rate from 3% to 3.2%. Lag between Bank of England interest rate rises and banks passing on those gains to customers is something we’ve criticised Chase for, so it’s good to see Monzo taking the initiative here.

Like all the options on our list, Monzo has full FSCS proaction, but in addition is also part of the current account switching scheme (CASS), which means you can switch another UK account to Monzo.

Monzo is also offering a free £5 welcome bonus to new customers. To get the offer, sign up for a Monzo account via our link below.


  • Current account so truly instant
  • £5 welcome bonus
  • Top class app and budgeting
  • CASS member


  • Only available with a Monzo current account

>> Open a Monzo account

Chase Bank – 3.1% easy access saver

Chase set its sights on becoming the UKs most rewarding bank, when it launched its digital back in 2021. It offers 1% cashback on spending, and 5% AER interest on round-ups, but it’s the savings account that’s got our attention now.

At the time of launching in 2021. It offered market leading rates, but has since been slow to keep up with the Bank of England rises. Now at 3% AER though, it’s one of the highest paying truly instant access accounts around.

Like Monzo (above) you need to have a Chase current account in order to open a savings account. Fortunately, its current account is great too. We’ve been using Chase since its launch, and so far it’s hasn’t put a foot wrong. See our Chase bank account review for more details.


  • Interest paid on deposits up to £250,000
  • Interest paid monthly
  • Unlimited withdrawals
  • Unique sort code and account number


  • Slow to increase rates
  • Must open a current account to get access to the saver

>> Open a Chase easy access saver account

Atom Bank – 2.95% instant access saver

Atom was the first digital bank in the UK. Unlike fellow challengers Starling, and Monzo, Atom chose to focus mortgages and savings.

Its Instant access saver account was one of the highest paying around at 2.95% AER on deposits up to £100,000, but it has failed to keep pace with BoE rate rises, and whilst still a good account, it falls to the bottom of our list.

Of course, being an instantly access account rather than an easy access account (there’s a slight technical difference), your money is available instantly anytime you want it.


  • Instant access
  • No minium deposit


  • Must connect your current account
  • Interest rate is lagging behind the other top choices

>> Open an Atom instant access saver

Short term fixed savings accounts

Instant access savings accounts are great for their convenience and flexibility, but their rates can almost always be beaten if you’re prepared to lock your money away for a fixed period.

Short term fixed savings accounts generally provide higher interest rates, without locking your money away for years. They are ideal for people saving for bit ticket items, such as deposit on a home, where you know the money isn’t going be needed for a while.

Atom – 3.55% 6-month fixed saver

Atom’s instant access saver covered above maybe shy of the best instant access rates around, but its 6 months fixed saver certainly isn’t. It’s one of the two 6-month savings accounts we’ve come across with rates at or above the 3.55% mark.

Brown Shipley at 3.58% AER is the only other fixed short term savings account we’ve found that can beat this. That’s not exactly a household name, nor is it a purely digital affair.

We prefer Atom for its slick no-nonsense app, and ease of use. Interest is paid monthly, but being a fixed account, you can’t withdraw anything until maturity i.e. 6 months. There’s a £50 minimum initial deposit, and a maximum balance of  £100,000.

For those looking to lock their cash away for longer, Atom offers a 9 month fixed saver at 3.75% AER, and a 1-year fixed saver at 4.20% AER. There’s not point locking your money away for longer than that, as the 2-year rate is identical.

>> Open an Atom Savings Account

Tandem – 4.25% 1-year fixed saver

Tandem acquired Harrods Bank in 2017 allowing it limit use of the latter’s banking licence. It became popular for its Tandem credit card, that offered cashback on spending and was previously on the best credit cards to use abroad. It now focuses solely on savings and loans, and has reinvented itself as the UK’s green challenger bank.

Tandem offers an instant access savings account, at 3.05% AER, but it’s the 1 year fixed saver that is the real draw. At 4.25% it wins out against Atom’s 1-year fixed saver on headline rates, and is only 0.01% off the very best rate offered from any account digital or otherwise.

As always with fixed accounts, interest is paid at maturity, and you have no access to your money until the end of the the fixed term.

>> Open a Tandem savings account

Savings accounts vs ISA

Savings accounts and cash ISAs are the same thing in a different wrapper. After all, ISA stands for ‘Individual Savings Account.’ The difference between the two is that interest in an ISA isn’t taxed.

That doesn’t mean you should rush out and open an ISA though. For many, a savings account will be more beneficial.

Personal Savings Allowance (PSA)

In 2016, the government introduced the ‘Personal Savings Allowance’ (PSA). It means that basic rate taxpayers (i.e., those earning under £50,270 a year) can now earn up to £1,000 a year in interest on savings completely tax free. After that, the additional interest is taxed at 20%.

Even at interest rates of 5%, you could save almost £20,000 and still enjoy the tax free earnings.

According to Raisin, the average Briton has £9,633.30 in savings, and as such would be unlikely to exceed their PSA.

Higher tax rate savings

This changes somewhat if you’re a higher rate tax payer. You still get a personal savings allowance but it’s reduced from £1,000 a year, to £500. However, even at 5% AER you’d still need a savings balance of over £10,000 (which is higher than the UK average) before you’d start to pay any interest.

If you are an additional rate taxpayer, or likely to go over your PSA, then that is where a cash ISA starts to become beneficial as it allows you to deposit up to £20,000 a year. Interest on total balance of the ISA is always tax-free, but typically the interest rates on ISAs are below those of the best savings accounts.

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