The newest information that will help you get essentially the most out of your financial savings account.

Right here’s my month-to-month replace sharing modifications at main UK financial savings accounts, in addition to a number of the articles you might need missed on the location.

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August financial savings information

Quick access rates of interest fall after base charge minimize

Final week the Bank of England cut the base rate from 4.25% to 4%, and consequently many banks have handed on that change to clients.

The quickest have been the tracker charge accounts, together with Chip, Chase, Tandem and Kroo. A brand new addition to those ranks is Buying and selling 212. These banks have both already dropped charges or will do within the subsequent few weeks.

Additionally making cuts are many commonplace variable charge accounts, although they may cut back by roughly – it’s as much as the financial institution.

Whether or not these and related accounts must be ditched or not is dependent upon a couple of issues. First, are you getting a bonus? Many of those give a lift for the primary yr. In that case, the speed may nonetheless be aggressive, although in fact you’ll wish to examine.

And second, has the choice you’re taking a look at just lately decreased it’s charge? If not (although it’s not at all times straightforward to inform), you would possibly discover you switch over your money solely to search out they too decrease what they’re providing.

It could be price holding off for a couple of extra days simply to permit the banks time to speak any potential reductions.

Tax on financial savings curiosity to be deducted from wages

You might need seen headlines speaking about Rachel Reeves’ “new solution to tax financial savings”. That sounds worrying, proper? We’ve already had rumours of modifications to the Money ISA allowance. Might this be cuts to the Private Financial savings Allowance? Or maybe abolishing it? Effectively truly, its nothing of the type.

The Telegraph has reported that from 2027, you’ll have to supply your Nationwide Insurance coverage quantity to banks, they usually’ll then use this to report back to HMRC how a lot curiosity you earn in a yr. When you go over the Private Financial savings Allowance, they’ll then declare any tax due straight out of your pay.

It will assist the banks and authorities maintain monitor of all of the curiosity earned, as apparently round 20% isn’t reported every year beneath present techniques. When you already fill in a tax-return then you definately’ll proceed to submit curiosity totals by way of self-assessment.

In the meanwhile primary charge tax payers can earn £1,000 a yr in curiosity tax free in accounts (along with ISA and Premium Bond returns), whereas greater charge taxpayers get a £500 allowance. Right here’s extra on the Personal Savings Allowance.

No change to ISAs… but

Whereas we’re speaking about authorities plans and financial savings, it’s price mentioning that these rumoured modifications to Money ISAs allowances weren’t introduced as anticipated on the Mansion House speech in July.

The hypothesis was of a reduction to the Cash ISA allowance to somewhere between £4,000 and £10,000, whereas holding the general ISA allowance at £20,000 a yr. The idea behind this was it may encourage extra folks to take a position slightly than save, which in flip (in idea a minimum of), would assist increase the UK economic system.

Effectively, the backlash to this coverage means session on modifications to ISAs will proceed. That’s to not say cuts nonetheless couldn’t occur, so you probably have sufficient in financial savings it actually is sensible to replenish as a lot of your ISA allowance this yr as you may.

No matter is determined, I’d think about we’ll hear about it on the subsequent Price range, more likely to be in early November, earlier than any modifications happen subsequent April.

Virgin Cash 10% common savers mature

Final yr’s 10% common saver from Virgin Cash was fairly wonderful, and if you happen to opened this you’ll have simply had the full and curiosity earned transferred into a regular Virgin financial savings account.

Be sure you transfer this out now into a better paying account. When you don’t must entry the money, you’ll most likely get the perfect charge if you happen to lock the cash away in a set charge account.

You possibly can contemplate placing it in a high paying quick access and drip-feeding it in to different common savers, but it surely’s unlikely to make a lot distinction to what you get on the finish.

New Virgin Cash common saver pays 6.5%

Changing the ten% account is a brand new challenge paying 6.5%. That’s nonetheless fairly respectable, and because it’s a set charge you’ll be assured it received’t drop. It’s more likely to near new candidates on 28 August 2025. We’ve regarded intimately on the Virgin Money 6.5% regular saver.

6% common saver and not using a present account

One of many issues with many of the common and month-to-month savers paying greater than 6% is that you just’re required to have a present account with the financial institution. That’s probably not a difficulty for many, but it surely does require a credit score examine to open these preliminary present accounts, whereas some have charges and situations too.

So Monmouth Constructing Society’s new 6% paying account is an efficient choice if you happen to don’t need that further admin. It permits as much as £500 a month in deposits too, which is heftier than all different choices.

Nevertheless, I’ve had points making use of. It’s a must to do that by way of their app (until you reside domestically when you are able to do it in department), and it didn’t recognise Starling as a financial institution, which disrupted my software. I needed to get in contact by way of the telephone and ship a replica of my financial institution assertion. That ought to have mounted it however didn’t, so I’ll must name up once more.

Virgin Cash presents 5% to children

You probably have or open a Virgin Cash M Energy Little one checking account, they’ll be capable to earn 5% on balances as much as £5,000 in a linked financial savings account (it’s only one% within the present account itself).

The account is offered to 11 to fifteen yr olds, although dad and mom or guardians might want to have their very own Virgin Cash present account to open one.

Barclays to chop Wet Day saver charge AGAIN

For the third time this yr, the Barclays Wet Day Saver is being decreased. What was as soon as proper close to the highest at 5% on balances of as much as £5,000 now pays 4.36%.

Although many different banks have decreased charges after the bottom charge minimize, you may nonetheless do higher than this, with out the restrictions.

And if you happen to get this saver by way of the Blue Rewards provides on, you’re additionally paying £5 a month for the privilege, which actually cuts down what you get. In reality, the best you can get in reality is 3.08%.

Solely those that entry it by way of the Premier Checking account received’t pay this cost and get the total 4.36% AER.

Premium Bond prize charge has dropped

A reminder that the draw initially of this month was on the lower 3.6% rate. When you’re not pleased with this, I’d most likely wait till the September draw has occurred after which transfer your cash. Do it early and also you’ve already missed a 3rd of August when it comes to incomes curiosity elsewhere.

Greater than £100m in Premium Bond prizes unclaimed

NS&I’ve revealed that 2.5 million prizes have been unclaimed – although this goes again so far as 1957. When you’ve not obtained it routinely set as much as ship you or reinvest your wins, then you may examine your account on the NS&I web site.

When you’re uncertain if you happen to’ve obtained Premium Bonds or have misplaced the main points, there’s a tracing service you should utilize, or the My Lost Account service, which additionally seems at issues like lacking pensions and financial savings.

August’s financial savings presents

We’ll share every other offers in our savings deals web page if any extra come alongside.

Prime financial savings accounts for August 2025

Bear in mind, these are the accounts on the high of the tables. We’ve extra choices in our best savings accounts page, which is up to date daily by the group.

Present account linked saver picks as of 11/8/25

  • Santander Edge Saver (6% AER variable, consists of 2% bonus for 12 months) – max £4,000
  • Nationwide (5% AER variable for 12 months) – max £1,500

Straightforward & restricted entry picks as of 11/8/25

  • Cahoot Wet Day Saver (5% AER variable) – max £3,000
  • Cahoot (4.55% AER variable)
  • West Brom Constructing Society (4.55% AER variable) – charge drops after 4 withdrawals
  • Cynergy (4.45% AER variable)

Quick access ISA picks as of 11/825

  • Tembo Money (4.64% AER variable)
  • CMC Make investments (4.59% AER variable) – partial FSCS safety
  • Moneybox (4.45% AER variable) – new clients solely

Discover accounts picks as of 11/8/25

  • 3 months discover RCI (4.7% AER variable): 95-days discover
  • 6 months discover Stafford Constructing Society (4.61% AER variable): 180-days discover

Mounted financial savings accounts picks as of 11/8/25

  • 6 months Aldermore (4.63% AER mounted)
  • 9 months GB Financial institution (4.5% AER mounted)
  • 12 months Vanquis Financial institution (4.44% AER mounted)
  • 18 months Cynergy Financial institution (4.33% AER mounted)
  • 2 yr GB Financial institution (4.46% AER mounted)
  • 3 yr GB Financial institution (4.46% AER mounted)
  • 4 yr JN Financial institution (4.4% AER mounted)
  • 5 yr JN Financial institution (4.52% AER mounted)

Mounted ISA accounts picks as of 11/8/25

  • 12 months Chetwood Financial institution (4.31% AER mounted)
  • 2 years Shawbrook (4.21% AER mounted)
  • 3 years Shawbrook (4.22% AER mounted)
  • 4 years UBL (4% AER mounted)
  • 5 years Shawbrook (4.25% AER mounted)

Lifetime ISA choose as of 11/8/25

  • Moneybox Money Lifetime ISA (4.45% AER variable)

Common Saver accounts picks as of 11/8/25

We’ve obtained a devoted Regular Saver best buy article, so you may see additional particulars and extra charges there.

  • Zopa Common Saver (7.1% AER variable): min £1 / max £300 a month
    • requires a Biscuit (by Zopa) present account
  • First Direct Common Saver (7% AER mounted): min £25 / max £300 a month
    • requires a First Direct present account
  • Co-operative Financial institution Common Saver (7% variable): min £1 / max £250 a month
    • Requires a Co-op Financial institution present account
  • Virgin Money Common Saver (6.5% AER mounted): min £1 / max £250 per thirty days
    • Requires Virgin Cash present account

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