Learn how to compare savings AERs, spot temporary bonus rates, understand access restrictions and decide whether switching your savings could be worthwhile.
A straightforward way to compare AERs, bonus periods, access rules and account conditions without chasing every headline rate.
AER
A standardised annual rate used to compare savings accounts.
Rate type
Savings rates may be variable or fixed.
Bonus rate
Some headline rates include a temporary promotional bonus.
Access
Higher rates can come with withdrawal limits, notice periods or fixed terms.
Eligibility
Some accounts require an existing banking relationship or other conditions.
Protection
Check whether eligible deposits are covered by the relevant UK deposit-protection scheme and banking licence.
AER stands for Annual Equivalent Rate. It is designed to show the annual interest rate on savings in a standardised way, taking account of how interest is paid and compounded.
It helps compare savings accounts, but it does not tell you everything about an account.
Some savings accounts include a temporary bonus or boosted rate. The headline AER can fall when the bonus ends.
The rate currently advertised.
How long any promotional element lasts.
The rate that may apply once the bonus or promotional period ends.
Illustrative example only
When the bonus ends, the account may revert to the underlying rate, assuming the underlying rate were unchanged. Variable underlying rates can change during or after a promotional period.
The provider can change the rate in line with the account terms.
Potential advantages
Potential considerations
The rate is set for an agreed term.
Potential advantages
Potential considerations
Account terms vary. Use this as orientation — then check the specific product conditions.
The highest AER is not automatically the best account for your needs
A slightly higher rate may be less useful if the account has withdrawal restrictions, a short-lived bonus, an unsuitable fixed term or eligibility requirements you cannot meet.
Emergency savings generally need easier access than money you know you will not need for a defined period.
Emergency fund guideIllustrative only
Assumes the displayed rates remain unchanged for one year. Estimates are not guaranteed.
Illustrative arithmetic only — not a current provider comparison
Difference in annual interest ≈ balance × difference in AER.
0.25 percentage-point difference on £10,000 ≈ £25 a year
Illustrative arithmetic only
Some savings accounts pay different rates on different balance bands.
£1–£9,999
Rate A
£10,000+
Rate B
Do not compare only the highest advertised tier if your balance would earn a different rate.
Certain accounts pay a higher rate only if withdrawals stay within a stated limit, or reduce the rate after withdrawals.
Check the withdrawal conditions alongside the headline AER.
A regular saver may advertise a high AER but limit how much you can deposit each month. Because money is added gradually, you cannot usually multiply the full annual contribution by the headline AER to estimate first-year interest.
Neither moving nor staying is automatically right. Weigh the pound difference against access needs and account conditions.
Eligible UK deposits are protected subject to the current FSCS rules and limits. Eligible deposits with authorised UK banks and building societies may be protected up to £120,000 per eligible person, per authorised firm.
Different brands can sometimes operate under the same authorised firm, so deposits may share one FSCS limit.
If your savings exceed the relevant deposit-protection limit with one authorised banking group, you may want to understand how protection applies across institutions and shared licences.
Find the current rate actually being paid.
Note any promotional end date.
Ask how quickly you may need the money.
Compare rates only for accounts you actually qualify for.
Review again when a bonus ends, a fixed term matures, your rate changes materially, or your savings balance changes significantly.
Compare AERs, access rules, bonus periods and eligibility across the savings accounts we currently cover.
Browse easy-access and other cash savings options. Rates and eligibility vary — check the details for each account.
Compare savings accountsUse the Savings Calculator to model a balance, regular contributions and an assumed AER.
Open Savings CalculatorResults are illustrative. Actual savings rates can change.
FAQs
General education only — not personalised financial advice.
If you spot something that needs correcting or want to contact our editorial team, get in touch.