Best Savings Account UK 2026: How to Pick the Right One
A higher-rate taxpayer with £15,000 at 4% has already blown the Personal Savings Allowance. Same money, right wrapper, same interest, zero tax. Most savers pick wrong.
Personal Savings Allowance, 2026/27
| Tax band | PSA | Balance at 4% to use it up |
|---|---|---|
| Basic rate | £1,000 | £25,000 |
| Higher rate | £500 | £12,500 |
| Additional rate | £0 | Any balance is taxed |
Above the PSA, savings interest is taxed at your marginal income rate.
Key takeaways
The Personal Savings Allowance is £1,000 (basic rate), £500 (higher rate), or £0 (additional rate) - above that you pay your marginal tax rate on interest
A Cash ISA shelters interest from tax entirely. For higher-rate taxpayers above the PSA, the ISA almost always wins
Best easy-access rates in 2026 are around base rate; fixed-rate bonds typically pay 0.3-0.7% more for locking up 1-2 years
The right account depends on the job: emergency fund (easy access), known goal in 12-24 months (fixed bond), pure tax shelter (Cash ISA)