Top savings accounts and cash ISAs to consider this month

You can earn up to 5% with an instant access account, which could add up to £150 over a year on £3,000 of savings

Savings rates are still attractive for people who can leave money untouched for a period, and with further rate rises expected in the coming months, returns could improve again.

Our regular guide to the leading easy access accounts and Cash ISAs highlights where your money can earn the most interest, but rates are correct only at the time of writing and can change without notice.

It is also worth noting that the Bank of England is likely to increase interest rates soon, which means many variable-rate products may be updated afterwards. We will refresh this guide when that happens.

Best easy access savings accounts

The top two easy access deals remain the same as in recent months: the 5% offers from Lemfi and Cahoot. Each comes with different conditions, so it is important to check which one fits your needs.

Lemfi’s 5% rate includes a six-month bonus, after which it falls to just above 3%. The account can be opened with £1, allows unlimited withdrawals and pays interest monthly.

Cahoot’s 5% comes with its Sunny Day Saver. That rate lasts for 12 months and is variable, but interest is only paid on balances up to £3,000. No interest is earned above that limit. Withdrawals are also allowed whenever needed.

Beyond the leading pair, the competition is tight and the best option for you will depend on how you plan to use the account, since the rates are very close together.

Zopa is offering 4.56%, but that rate is only for new customers. Existing customers receive a lower rate of 3.5%. The account is attractive when paired with the cashback and interest available on current account balances through Zopa Biscuit, though savers should remember the account permits only three withdrawals a year. Make more than that and the rate drops to 2% for the rest of the first 12 months.

Tembo offers a variable 4.55% on its HomeSaver account, but the main appeal is that the rate rises to 5.5% for people saving to buy a home who also use its mortgage service when they purchase. Because it has instant access and no withdrawal restrictions, it can also be used for other savings goals at the standard rate. Tembo also introduced an 8% regular saver recently.

Chase’s long-running 4.5% rate is still available. It is a straightforward instant access account with unlimited deposits and withdrawals, and the bonus applies for 12 months. Savings held there also count towards the £1,000 needed to qualify for cashback on the current account card. Like Tembo, Chase also offers a strong regular saver.

Best Cash ISA rates

A Cash ISA is simply a savings account where the interest earned is tax-free. For many savers, it is also welcome that the government has abandoned plans to reduce the annual ISA allowance from £20,000 to £12,000. Still, if you are saving that much each year, it may be worth considering whether some of it should be invested instead.

At the moment, the best rate on the market comes from Trading 212, which is offering 4.77% to new customers who sign up with a code.

Next are Chip with a 4.75% Smart ISA, Plum with a 4.66% Cash ISA and Ecology Building Society with 4.65%.

When choosing a Cash ISA, it is important to make sure the account suits your expected needs before opening it.

Some of the deals above are available only to new customers, while others pay the headline rate only on new money, meaning funds saved during the current tax year. In some cases, the top rate may not apply to transfers in from other providers, and withdrawals may also be restricted. Ecology’s current offer, for example, allows only two withdrawals a year, after which the account will be closed.

Providers also tend to change their terms frequently, so always check the latest details before opening an account.

When investing, your capital is at risk and you may get back less than you invested. Past performance does not guarantee future results.