With the festive season drawing to a close, a definitive list of the top-paying savings accounts has been published to help UK households make their money work harder in the new year.
Expert Urges Savers to Act Now
Financial information provider Moneyfactscompare has compiled its weekly selection of the best savings deals available for the period beginning December 29, 2025. Finance Expert Rachel Springall highlighted that many savers are missing out by leaving their cash in high street bank accounts or current accounts paying minimal interest.
"Challenger banks and building societies offer some of the best returns on the savings market," Springall stated. She emphasised that switching is a straightforward process and is crucial for securing a rate that can counteract the impact of inflation.
Springall pointed out a significant disparity in rates, noting that the top deals currently pay over four per cent, while some major high street banks offer only around one per cent. She advised that the quieter period between Christmas and New Year is an ideal time for savers to review their existing arrangements.
This review is particularly pertinent, she added, as some returns may be reduced by 0.25 per cent following a cut to the Bank of England base rate.
Best Regular Savings Accounts
The list reveals that regular savings accounts are currently offering some of the most competitive returns. Leading the pack is Principality Building Society with an impressive 7.5 per cent AER (7.36 per cent Gross). Close behind are Zopa at 7.1 per cent AER and The Co-operative Bank at seven per cent AER/Gross.
A cluster of providers are offering a rate of 6.5 per cent AER, including:
- Nationwide Building Society
- Principality Building Society (a second offering)
- Newcastle Building Society
- Manchester Building Society
- Hanley Economic Building Society
- Scottish Building Society
Monmouthshire Building Society completes this category with a rate of six per cent AER/Gross.
Top Fixed-Rate and Cash ISA Deals
For those seeking certainty, the fixed-rate savings market also presents strong options. The top fixed-rate account is from LHV Bank, paying 4.46 per cent AER/Gross. It is closely followed by Union Bank of India (UK) Ltd at 4.45 per cent and Habib Bank Zurich plc at 4.44 per cent.
Other notable fixed-rate providers include Recognise Bank (4.35%), Cynergy Bank (4.28%), and Kent Reliance (4.27%).
For savers utilising their tax-free allowance, the best Cash ISA is offered by UBL UK at 4.32 per cent AER/Gross. Investec Save follows with 4.3 per cent, and Gatehouse Bank offers 4.21 per cent. Virgin Money, Kent Reliance, and Tandem Bank are among other providers featuring in the Cash ISA top ten, all offering rates above four per cent.
The data underscores a clear opportunity for savers to boost their returns by shopping around. With a wide range of competitive products available from challenger banks and building societies, a post-Christmas financial review could prove highly beneficial for household finances in 2026.
