Compare savings accounts
Find the right savings account for you using the service provided by Experian Ltd
Compare and chooseBy clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
Should you choose a savings account that offers a boosted rate?
Instant-access savers with bonus rates look impressive, but you'll need to be on the ball when it comes to switching deals
At first glance, Santander's Edge Saver looks like a steal. This instant-access account offers 6% AER – twice the current average rate. But there's a catch.
The rate only remains at 6% for a year, after which it drops to 4.5%. It's also only payable on balances up to £4,000, with any savings over that amount earning nothing at all. Plus, you'll need a Santander current account to open it.
Accounts like this with 'boosted' introductory rates may appear tempting, but are they worth the hassle? We weigh up the pros and cons.
Rates on boosted savings accounts
A boosted savings account offers a higher interest rate for a set period of time. These deals are usually variable-rate instant-access accounts.
The table below shows the highest rates currently available, and the conditions they come with.
| Account | AER | Bonus rate | Terms |
|---|---|---|---|
| Santander Edge Saver | 6% | 1.5% bonus for 12 months. Rate drops to 4.5% after. | £1 minimum deposit. No interest paid on balances over £4,000. Must hold a Santander Edge current account. |
| Chase Saver | 4.75% | 1.5% bonus for six months. Rate drops to 3.25% after. | No minimum deposit. Only available to Chase customers within their first 31 days of opening a current account. |
| Sidekick Money High Yield Cash Reserve | 4.75% | 0.45% bonus for 12 months. Rate drops to 4.3% after. | £1,000 minimum deposit. |
| Principality Building Society Online Bonus Triple Access | 4.7% | 1.5% bonus for 12 months. Rate drops to 3.2% after. | Only three withdrawals allowed per year. |
| Chip Easy Access Saver (powered by ClearBank) | 4.59% | 0.99% bonus for six months. Rate drops to 3.6% after. | Only three withdrawals allowed per year. |
Source: Moneyfacts. Correct as of 13 February. Rates are subject to change.
- Find out more: best savings accounts.
The problems with boosted rates
As the table shows, boosted rate savings accounts offer very attractive initial returns.
Santander, Chase and Sidekick lead the pack, with deals that are well above the February average of 2.9%.
But before you rush to open one of these accounts, you'll need to factor in the following:
1. Bonuses are fleeting
The boosted rate only lasts for a set period of time and will be limited to new customers only. While many accounts offer the boost for a year, some of the best rates vanish after just six months.
If you don't pay attention and switch as soon as the introductory offer ends, you could find yourself earning a much lower rate than you'd get on a different account.
2. Rates can still change
The overall rate you get on your boosted saver isn't set in stone. It could still go up or down before the bonus is due to end.
That's because rates on instant-access accounts are variable and the provider can change it whenever it wants.
Banks and building societies often change their savings rates when the Bank of England (BoE) tweaks its base rate.
For example, the BoE most recently cut the base rate from 4.75% to 4.5% on 6 February. In response, Chase reduced the rate on its instant-access saver by the same amount, meaning its standard rate went from 3.5% AER to 3.25%.
Although the boosted rate of 1.5% stayed the same, the overall interest payable dropped from 5% AER to 4.75%.
3. Some deals come with restrictions
Some of the providers offering boosted rates require you to jump through hoops to open an account. Both Chase and Santander require you to be a current account customer first. In the case of Santander, there's also a monthly fee of £3 to hold an Edge current account.
Principality and Chip place limits on the number of withdrawals you can make throughout the year, so these deals aren't great if you think you might need to dip into your savings regularly.
You should also watch out for rules on balances. As mentioned earlier, the Santander Edge Saver only pays interest on up to £4,000. If you have a big lump sum to invest, you might want to take your money elsewhere.
- Find out more: types of savings accounts.
Are you better off with a standard rate?
Aside from Santander's 6% boosted deal, there isn't a huge difference between the top boosted rates and the best standard savings rates.
With this in mind, boosted deals are best for those who are willing to move their savings regularly to get the very best deal.
The top instant-access rate currently available is 4.85% from Coventry Building Society, although this deal has opening restrictions and withdrawal limits.
If you're looking for a deal with no restrictions, there are lots of options around the 4.5% mark, as shown in the table below.
| Account | AER | Terms |
|---|---|---|
| Cahoot Sunny Day Saver | 4.75% (a) | £1 minimum deposit. |
| Chip Instant Access Account | 4.58% | £1 minimum deposit. |
| Charter Savings Bank | 4.57% | £1 minimum deposit. |
| Kent Reliance Easy Access Account | 4.56% | £1,000 minimum deposit. |
| Monument Bank Easy Access Account (Raisin exclusive*) | 4.56% | £1,000 minimum deposit. |
Source: Moneyfacts. Correct as of 13 February 2025, but rates are subject to change. (a) 4.75% interest is only payable on balances up to £3,000.
Shop around for the best account
When working out the best home for your savings, make sure you compare accounts from different banks.
Our guides to finding the best savings account and high-interest current account helps you make an informed decision on where to get the best rate, and highlights what caveats may be in the small print.
Our reviews also show how banks and building societies measure up for customer service, and reveal those that have met our criteria to become a Which? Recommended Provider.
