Is it worth moving savings for a small difference?

On a meaningful balance, yes — the switch is a one-off ten-minute task and the gain repeats every year you leave the money there.

Cash ISA or ordinary savings account?

Compare after tax. If your interest stays under your Personal Savings Allowance, the higher headline rate usually wins; above it, the ISA often does.

Are smaller banks safe?

Eligible deposits are protected by the FSCS up to the limit per person per banking licence, so a lesser-known but FSCS-covered provider carries the same protection as a household name.

How to get a better interest rate on your savings

5 min read

Big banks rely on inertia. Default instant-access rates at large high-street banks are frequently a fraction of what the top of the market pays, and the money moves in about fifteen minutes. This is the rare saving that requires no lifestyle change at all.

1. Find out what you are actually earning

Log in and check the AER on your existing savings account. Then compare it with the current best-buy easy-access rates on an independent comparison table.

Multiply the difference by your balance to see the annual cost of doing nothing. For many households it is the single largest number they will find in an afternoon of admin.

2. Match the account type to the money

Different pots have different jobs, and the right account follows the job rather than the headline rate.

Easy access: emergency fund and anything you might need at short notice. Watch for bonus rates that expire after twelve months.
Notice accounts: slightly higher rates in exchange for giving notice before withdrawal.
Fixed-rate bonds: best rates, but your money is locked away for the term.
Regular saver: high headline rates on small monthly deposits — good for building a habit, not for a lump sum.
Cash ISA: shelters interest from tax, which matters once your interest exceeds your Personal Savings Allowance.

3. Understand the tax and protection rules

Basic-rate taxpayers have a Personal Savings Allowance covering a set amount of interest each year; higher-rate taxpayers get less and additional-rate taxpayers get none. Once you exceed it, a cash ISA usually beats a marginally higher taxable rate.

Check the provider is covered by the Financial Services Compensation Scheme, which protects eligible deposits per person per banking licence. Note that some brands share a licence, so spreading money across two brands does not always spread the protection.

4. Make the switch and set a reminder

Opening an account online typically takes minutes. Move the money, then diary a rate check every six months — introductory bonuses expire quietly and providers rarely tell you when you have slipped down the table.

If you have expensive debt, clearing it usually beats any savings rate available: paying off a credit card at a high APR is a guaranteed, tax-free return.

See this applied to your own money

Ai Money Saver checks your income and outgoings — typed in, from a bank statement, or talked through — and shows where you're likely overpaying before you pay anything.

Start assessment Use a bank statement

Frequently asked questions

Is it worth moving savings for a small difference?: On a meaningful balance, yes — the switch is a one-off ten-minute task and the gain repeats every year you leave the money there.
Cash ISA or ordinary savings account?: Compare after tax. If your interest stays under your Personal Savings Allowance, the higher headline rate usually wins; above it, the ISA often does.
Are smaller banks safe?: Eligible deposits are protected by the FSCS up to the limit per person per banking licence, so a lesser-known but FSCS-covered provider carries the same protection as a household name.