Best savings accounts for your money in May 2025 before interest rates are cut

The Bank of England will continue bringing rates down this month so make sure you are earning on your money

The Bank of England are expected to drop interest rates on 8 May when the Monetary Policy Committee meets - which means the rates you can get on your savings accounts will also likely come down.

While higher interest rates have certainly made paying off mortgages or other loans more difficult over the last couple of years, savers have benefited enormously from competitive rates and a battle between banks and building societies for their money.

That might start to come to an end soon though, at least for high-yielding, inflation-beating returns on your cash - so it’s vital you make the most of any offers still out there before they disappear.

Here are the best rates and places to consider for your savings at the start of May - though returns and offers are subject to change, particularly after the BoE meets.

And remember - for tax purposes, the interest you earn counts when it’s paid, not when you open the account, so if it’s paid in a lump sum at the end of one year it’ll now count towards next year.

Best fixed term accounts

As a reminder, fixed-term deals are good because they guarantee you a particular interest rate (even if the bank rate drops) for a set period of time.

However, the fact you cannot usually withdraw money from them until the end of that term (at least, not without penalties) means they are only suitable if you know you won’t need a particular part of your cash for that period of time.

The best one-year deal on the market right now is from Tandem, an app-based account which gives you 4.55 per cent for a lump sum locked away for a year. You can’t withdraw or make any other deposits so it’s for those who have a certain amount they know they want to save.

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GB Bank offer up to 4.55 per cent and you can choose monthly or annual payments, for an amount between £1,000 and £100,000. For a bigger high street name, Virgin Money offer 4.31 per cent.

For two years, JN Bank are offering 4.48 per cent - for anything longer, rates are around the same level so have less appeal unless you are keen to guarantee an income. If you are able to lock money away for five years or longer, consider investing rather than saving as it can generate better returns over the long haul - though, unlike saving, returns are not guaranteed.

Best easy-access accounts

If locking it away for the year isn’t for you and you need an easy access account instead, you can still good good rates right now but check to see if your chosen product has a variable underlying rate.

If so, the interest rate you get might come down when the BoE cuts its own bank rate.

Sidekick is currently offering 4.76 per cent, which includes a bonus active for 12 months. There are unlimited withdrawals allowed - while Atom, as a comparison, offers 4.75 per cent in months where you don’t make any withdrawals and 3 per cent in months when you do.

Best cash Isa accounts

The other alternative if you want a “normal” savings account with a high interest rate is to open a cash Isa - as no money held in Isa products are taxed, whether that’s capital gains, interest paid or dividends earned. To learn more about Isas, read here.

Among cash Isa providers, there has been quite the battle going on over the past two months - this may ease off now as “Isa season” ends and the bank rate drops but Moneybox and Plum are both still offering just over 5 per cent, with Tembo at 4.8 per cent and Trading 212 now 4.35 per cent.

Several of these include bonuses of different times so check carefully which one suits your needs.

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Best regular savers

Regular saver accounts are for those who want to get a regular savings habit going or have extra cash to put away each month - and you can get the best rates from these too, but sometimes cannot withdraw until the end of the year.

Usually there’s a limit on how much you can save, £300 or £400 a month for example - but you often need to have a current account open with banks to get access to it.

For example, first direct offer a 7 per cent regular saver account for up to £300 a month if you have a first account already. Co-Operative Bank have 7 per cent for up to £250 a month if you already bank with them. Others offer around the 6 per cent mark including Nationwide and Lloyds.

For “open to all” saver accounts, TSB offer the highest current rate of 6 per cent, saving up to £250 per month.

If you don’t want to switch, make sure to check with your current account provider to see if they can offer you a better deal too!