Savings rates in September 2026: how to compare accounts properly
Easy-access accounts pay up to around 5%, but the top rates hide bonuses. How to read the small print and pick the right home for your cash
Savings rates have held up better than many expected, with the Bank of England base rate at 3.75% and a possible rise in November. The best easy-access accounts pay around 4.5% to 5% AER, but the headline number often includes a temporary bonus. This guide explains how to compare accounts like for like and when tax makes an ISA the better choice.
Look past the headline rate
Many of the top easy-access accounts pay a bonus for the first 12 months and then drop to a much lower underlying rate. Two accounts advertised at 4.8% can be very different: one might be 4.8% throughout, the other 3% plus a 1.8% bonus that vanishes after a year.
When you compare:
- Find the underlying rate, which is what you get once any bonus ends.
- Check for withdrawal limits. Some "easy access" accounts allow only a few withdrawals a year before the rate drops.
- Note any minimum balance and whether the rate falls on balances above a cap.
- Set a reminder for the day the bonus ends, then move the money.
Rates change weekly, so check a comparison site for today's rates rather than relying on figures from an article.
AER versus gross
AER (annual equivalent rate) shows what you would earn over a year if interest is paid and compounded. The gross rate is the rate before compounding. If interest is paid monthly, AER is slightly higher than gross; if paid annually, they are the same. Compare AER against AER. It is the only fair way to line up accounts that pay interest at different intervals.
Easy access, notice or fixed
| Account type | Typical September 2026 rate | Access | Good for |
|---|---|---|---|
| Easy access | Around 4.5% to 5% AER (bonus-inclusive) | Any time | Emergency fund, short-term cash |
| Notice account | Between the two | 30 to 120 days' notice | Money you will not need at once |
| Fixed-rate bond | Around 4.5% to 5.25% | Locked for the term | Money you can leave alone |
With markets pricing a base rate rise as more likely than not in November, fixed rates have not moved much. If you fix now and rates rise, you miss out; if rates fall later, you have locked in. Splitting money between easy access and a fix is a common way to hedge.
When tax changes the answer
Interest outside an ISA counts as income. The Personal Savings Allowance shelters the first £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers. Additional-rate taxpayers get nothing. If you earn under about £17,570, the £5,000 starting rate for savings can shelter more.
At 5%, a basic-rate taxpayer uses up the full £1,000 allowance with £20,000 in savings. A higher-rate taxpayer hits £500 with just £10,000.
Above those amounts, tax bites. A higher-rate taxpayer with £30,000 at 5% earns £1,500, pays 40% on the £1,000 over the allowance (£400 tax) and keeps £1,100. That is an effective rate of about 3.7%. A cash ISA paying 4.2% would beat it, even though 4.2% looks worse on paper.
The rule of thumb: once you are over your Personal Savings Allowance, compare the after-tax rate of a normal account with the ISA rate. Tax on interest is usually collected through your tax code, so it can be easy to miss.
Do this now
- Check every savings account you hold and note the current rate and whether a bonus is about to end.
- Work out roughly how much interest you will earn in 2026/27 and whether it exceeds your Personal Savings Allowance.
- If it does, use some or all of your £20,000 ISA allowance. For under-65s, 2026/27 is the last year the whole allowance can go into cash.
- Keep at least three months of essential spending in easy access. Consider fixing the rest if you will not need it.
Watch out for
- Accounts that pay interest only if you meet monthly conditions.
- Apps that hold money in e-money accounts rather than a bank account. Check that FSCS protection applies before depositing.
- Loyalty. Long-standing accounts at big high street banks often pay well under 2%. Moving is usually quick and free.