Best Isa, bonds, savings and current account rates for 2022

Now that interest rates are rising, it is vital you find the right home for your savings to help you get the most out of your money.

These are the best rates available right now on Isas, bonds, savings and current accounts.

What is the difference between an Isa, bond, savings and a current account?

A current account is a transactional account that typically pays no interest but gives you a lot of flexibility in how often you access your money – whereas with a savings account the bank pays you interest for keeping your money and therefore imposes some restrictions on how many withdrawals you can make. 

A fixed-rate bond is a savings account with a fixed term usually between one and five years. Until the duration of the bond is up, you cannot withdraw your funds, but in exchange for the commitment you will get a higher rate. 

The difference between an Isa and other savings accounts is there is no tax charged on the interest. Everyone can save up to £20,000 a year tax-free in one or more Isas.

How to choose the right account for you

The first thing to consider is whether you might need access to the funds in an emergency.  A current account or an easy access savings account will give you this flexibility. 

However, you will get a higher rate if you are willing to lock away your funds for a set period (for example, in a bond). Generally, the longer the period, the higher the rate. 

The other thing to consider is whether you are at risk of exceeding your personal savings allowance – which is £1,000 for a basic-rate taxpayer and £500 for a higher-rate taxpayer. If you earn more than this in interest, then you will have to pay tax. This is why an Isa might be a good idea for you. 

Use our calculator to work out whether you could breach your allowance and if you should get an Isa. 

The best Isa rates for 2022

Easy-access: Marcus by Goldman Sachs Cash ISA – 2.50pc 

You can start saving with £1. You can withdraw money penalty-free. However it is flexible – which means if you replace money you withdraw, the replacement will count towards your annual ISA subscription limit. The rate includes 0.25pc bonus for 12 months

One-year fixed rate: Aldermore 1 Year Fixed Rate Cash ISA – 3.65pc 

You need a minimum of £1,000 to open an account. You can make withdrawals, subject to a deduction of 90 days’ interest. This Isa is also flexible but the rate is fixed. 

Two-year fixed rate: Aldermore 2 Year Fixed Rate Cash ISA – 4.00pc

The minimum deposit is £1,000. You can make withdrawals subject to a deduction of 180 days’ interest and the Isa is flexible. 

Five-year fixed rate: Leeds Building Society 5 Year Fixed Rate Cash ISA (Issue 142) – 3.75pc

You need a minimum of £100 to open an account. You can only access your money after 30 November 2027 once the term is up. 

The best bond rates for 2022

One-year fixed rate: Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) – 4.60pc 

You can save between £1,000 and £1m into the account. 

Two-year fixed rate: Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) – 5.00pc 

You can save between £1,000 and £1m.

Five-year fixed rate: Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) – 5.00pc 

You can save between £1,000 and £1m. 

The best savings account rates for 2022

Easy access savings account: Marcus by Goldman Sachs Online Savings Account – 2.50pc

You can save up to £250,000 in this account. The 2.50pc rate includes a 0.25pc bonus which lasts for only 12 months.  

Regular savings account: Lloyds Bank Club Lloyds Monthly Saver – 5.25pc

You have to make a minimum deposit of £25 a month for one year while the maximum monthly deposit is £400. 

Notice savings account: Family Building Society Capital 90 (2) – 3.10pc

You can deposit between £20,000 and £250,000. You must give 90 days’ notice before making a withdrawal. 

The best current account rates for 2022

Nationwide FlexDirect Current Account – 5pc (up to £1,500) 

You must pay in £1,000 monthly to earn in-credit interest.

TSB Student Account – 5pc (up to £500) 

To be eligible you must have lived in the UK for more than three years and be studying for a full-time course that lasts over two years, or on a one-year access course leading onto a full-time degree.