How to Switch to a Better Savings Account in 2026: A Step-by-Step Guide

With top easy-access savings accounts paying 4% or more and the Bank of England base rate held at 3.75%, there has never been a better time in recent memory to make sure your cash is working hard. Yet millions of UK savers still have money parked in accounts paying 0.5% or less.

Switching a savings account takes less than 30 minutes and could earn you hundreds of pounds more per year. Here's exactly how to do it.

Step 1: Find Out What You're Currently Earning

Log in to your bank or building society and find your savings account's current interest rate. It will be shown in your account details or your latest statement. If you opened it more than a year ago and haven't checked since, the rate has almost certainly dropped as introductory bonuses expire.

Step 2: Compare Current Best Rates

Use a comparison site to see what's available now:

• MoneySavingExpert – Best Savings Accounts — updated daily, with full rate tables
• MoneySuperMarket – Savings
• Which? – Best savings accounts

In June 2026, Afin Bank is paying 4.9% AER for a 5-year fixed bond, and West Brom Building Society matches this at 18 months fixed. For easy-access accounts (money you can withdraw any time), top rates are around 4–4.5%.

Step 3: Decide Between Account Types

Easy-access accounts let you withdraw whenever you like. Best for emergency funds or money you might need soon. Rates are typically lower than fixed-rate deals.

Fixed-rate bonds lock your money away for a set period (typically 1–5 years) in exchange for a higher rate. Only use these for money you genuinely won't need during the term.

Cash ISAs let you save up to £20,000 per tax year (2026/27) with all interest completely free of income tax. Particularly valuable for higher-rate taxpayers. Note: from April 2027, the cash ISA limit for under-65s will drop to £12,000, so using your full ISA allowance this year is a priority.

Notice accounts require you to give advance notice (e.g., 90 days) before withdrawal, and often pay more than easy-access but less than fixed.

Step 4: Check FSCS Protection

The Financial Services Compensation Scheme (FSCS) protects up to £85,000 per banking group. If you have more than this, spread it across different banks — not just different brands owned by the same parent group. For example, Halifax and Bank of Scotland are both part of Lloyds Banking Group, so they share a single £85,000 limit.

In comparison, US FDIC insurance covers $250,000 per depositor per bank. Australian deposits are protected up to AU$250,000 per institution under the Financial Claims Scheme.

Step 5: Open the New Account

Most savings accounts can be opened online in under 10 minutes. You'll typically need:

• National Insurance number
• Passport or driving licence for ID
• Bank account details for the initial deposit

Some providers use instant online identity checks; others require a credit check (which won't affect your credit score for savings accounts).

Step 6: Transfer Your Money

For easy-access or fixed bonds, you simply transfer from your current account to the new savings account. There's no formal switching service for savings (unlike for current accounts). If you are switching a Cash ISA, you must use an ISA transfer, not a withdrawal. Withdrawing from a Cash ISA and reinvesting elsewhere counts as a new contribution and wastes part of your allowance. Ask your new provider to initiate an ISA transfer — they handle the paperwork.

Checklist

• Check current savings rate in your online banking
• Compare with best rates on MoneySavingExpert or MoneySuperMarket
• Decide on account type (easy-access, fixed, ISA, notice)
• Check FSCS protection limit (£85,000 per banking group)
• Open new account online (ID + NI number ready)
• Transfer money — or request an ISA transfer if moving a Cash ISA
• Set a calendar reminder to review again in 12 months

Key Numbers

• Base rate: 3.75%
• Best easy-access rate: ~4.5%
• Best 5-year fixed rate: 4.9% (Afin Bank)
• Cash ISA allowance 2026/27: £20,000
• FSCS protection: £85,000 per banking group

Sources

• MoneySavingExpert – Best Savings Accounts
• Bank of England – Base Rate Decision June 2026
• FSCS – Deposit Protection
• GOV.UK – ISA Allowances

Educational content only — not financial advice.