Banks in the UK Offering High Interest Savings Accounts in 2025 (Up to 7% AER)

Understanding Why 12% Interest on Savings Accounts Is Not Available in the UK in 2025

Interest rates on savings accounts in the UK reflect wider economic conditions, including Bank of England base rates, inflation, and regulatory frameworks. Since 2023-2025, while interest rates have risen compared to earlier years, they have not approached the 12% mark for secure bank savings products. Such a high rate would imply significant risk or promotional offers that are not currently standard.

• Market data from mid-2025 shows no reputable UK bank or building society offers 12% interest on any savings accounts.
• The highest available rates tend to be around 7% AER, typically with restrictions or linked to specific current accounts.

Savers should consider carefully any offers that claim very high interest rates, especially if these products do not come with Financial Services Compensation Scheme (FSCS) protection or involve fees that could affect overall returns.

Savings Accounts Available with Notably Higher Interest Rates in 2025

While 12% interest rates are not offered, there are several savings accounts providing relatively higher returns, combined with FSCS protection to secure savings up to £85,000 per person.

Santander Edge Saver - 7% AER Interest

• Offers 7% AER on balances up to £4,000.
• Available to customers who also hold a Santander Edge current account, which involves a £3 monthly fee.
• Provides easy access to savings with FSCS protection.
• Suitable for individuals with smaller balances who are willing to pay the monthly fee for a higher interest rate on this limited amount.

Zopa’s Linked Regular Saver - 7.1% on Monthly Deposits

• Provides an initial 7.1% interest on monthly deposits up to £300 for 12 months.
• Linked to the Zopa Biscuit current account, which includes cashback features.
• After 12 months, the account converts to an easy access account paying about 3.5% interest.
• Intended for those who can save regularly rather than make a lump sum deposit.

Other Accounts Offering Interest Rates Around 4.5% to 4.8% AER

• Sidekick Easy Access Account: 4.76% including a 0.72% bonus for 12 months, requires a minimum balance of £5,000.
• Atom Bank Instant Saver Reward: 4.75%, with interest adjustments if withdrawals occur during the month.
• Charter Savings Bank Notice Account: 4.65%, requires 65 days’ notice before withdrawal.
• West Brom Building Society Four Access Saver: 4.65%, restricts withdrawals to four per year.
• Conister Bank Fixed Term Deposit: 4.52% for a 1-year fixed term, minimum deposit of £5,000.

Each of these options benefits from FSCS protection, which safeguards eligible deposits up to £85,000 per person, per institution.

Key Points to Consider When Evaluating High-Interest Savings Accounts

Before selecting a higher-interest savings product, it’s important to review the terms and conditions to ensure it aligns with your financial goals:

• Interest Caps: Many accounts limit the sum eligible for the highest interest rate (e.g., Santander caps the 7% rate to balances up to £4,000).
• Withdrawal Access: Some accounts require notice for withdrawals or lock funds for a term, which could affect liquidity.
• Fees: Linked current accounts may have monthly fees that affect net returns.
• Interest Conditions: Certain accounts reduce interest if withdrawals are made within the interest period (e.g., Atom Bank).
• Eligibility Requirements: Some accounts are accessible only alongside specific current accounts or under other conditions.

Reviewing these factors carefully can help ensure you select a product that suits your cash availability needs and overall savings strategy.

Alternative Options to Explore in 2025

Since 12% interest rates are not available for standard savings accounts, here are some alternatives UK savers may consider to enhance returns in line with their risk tolerance:

Cash ISAs Offering Tax Advantages

• Certain cash Individual Savings Accounts (ISAs) provide competitive interest rates comparable to or slightly better than some regular savings accounts.
• Interest earned within Cash ISAs is tax-free, which may increase the effective return.
• Current ISA rates vary but remain below 12%; comparing offers can be beneficial for tax efficiency.

Investment Options Like Wise Interest for Variable Returns

• Wise offers a product called Wise Interest, which invests in government-guaranteed asset funds.
• Returns are variable, with recent rates around 3.74% (2025 figure), and capital is at risk.
• Wise Interest products are not FSCS protected, so involve investment risk but may offer alternative growth potential beyond savings accounts.

Overview of UK Savings Account Landscape Expectations in 2025

• No UK banks or building societies provide 12% interest rate savings accounts in 2025.
• The highest available rates are generally near 7% AER, often tied to specific product conditions like linked current accounts or monthly savings limits.
• Several options exist offering interest between 4.5% and 5.0% with more flexible access and no monthly fees.
• Most standard savings options benefit from FSCS protection on deposits up to £85,000 per person.
• Consider cash ISAs for tax advantages or regulated investment options like Wise Interest for varying growth opportunities.
• Carefully analyze your cash access needs and any associated fees before choosing an account.

A 12% interest rate remains outside the range of current secure savings products in the UK. Savers focusing on realistic rates and product features that suit their requirements can effectively grow their savings within the 2025 financial environment.

Sources

• Wise: Best Savings Accounts High Interest UK 2025
• Which? News on Regular Savings Accounts
• Daily Record: Zopa Current Account with 7.1% Savings Interest

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