
As central banks around the world slash interest rates, high street banks are taking similar steps, meaning interest rates on savings accounts, which were already low, are being cut further. However, this post aims to find the best online savings account interest rates for you.
The lower interest rates will be frustrating for savers who are working hard to put money aside each month. Your financial goals seem to drift further and further away as your money barely grows in value.
All interest rates are low at the moment, but it could be worth shopping around to see if there are better deals out there. To help, I’ve taken a look at the rates being advertised for online savings accounts by five of the UK’s biggest banks.
In this post I will look at:
- Santander
- NatWest
- Barclays
- Lloyds
- HSBC

Santander
Santander’s Regular eSaver now offers just 0.5% for a fixed 12-month period. It requires a monthly deposit of up to £200. This is a decrease from it’s previous 1.5% interest rate.
The eSaver account offers 0.05%. This is lower, but you don’t have to make a regular deposit if you’re savings or income are less regular.
Another option is the Everyday Saver account which offers 0.01%. Clearly, this is not a great option
NatWest
The Instant Saver account will earn you just 0.01%, but is very flexible.
For slightly higher rates, the Savings Builder will give you 0.75% on balances up to £10,000 as long. But,. you must pay in at least £50 a month to benefit from this, otherwise you’ll receive no interest.
NatWest also offers Fixed Term savings accounts, but the interest on these is variable depending on the maturity date. These should be checked on an individual basis and discussed with an adviser to see if they are suitable for you.
Barclays
Barclays’ Everyday Saver account is also only offering 0.01%. Again, it offers a lot of flexibility, but your money won’t grow very fast.
Its Instant Cash ISA earns 0.1% at the moment. Previously, this was 0.4%.
Lloyds
Lloyds’ best rates are available on its Monthly Saver account, where the balance will earn 1% interest for a year. Monthly deposits of between £25 and £250 are allowed. After a year, the account will be converted to an Easy Saver account which offers 0.01%.
If you’re a Club Lloyds member, you’ll benefit from 1.5% interest instead.
Another option is the bank’s Online Fixed Bond for two years, which offers 0.65% but has a minimum deposit of £2,000.
HSBC
HSBC’s Regular Saver offers a very attractive rate of 2.75%, fixed for 12 months. You can save up to £3,000 in this account through regular monthly payments. This is by far the best rate available from all of the banks looked at.
In contrast, HSBC’s Online Bonus Saver offers 0.05%. While the Flexible offers 0.01%.
HSBC’s Fixed Rate Saver account offers a more attractive 0.3% for a fixed one year term, increasing to 0.35% for two years. However, this is only available on deposits over £2,000.
Currently, interest rates are low everywhere on cash savings. If this is frustrating you, it could be worth having a look at your investing options.
If you found this post helpful, please like and share across social media or send it to your friends. I’d also love to hear your experiences. Do you think you’ve found the best online savings account interest rates?
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