Savings Accounts With 7% Interest: Which UK Banks Offer The Best Rates?

One number gets people talking more than any other when it comes to savings: 7%. That rate sounds almost too good to be true if you remember when banks barely scraped above 1% for years. But those ads for ‘7% savings accounts’ have been popping up, tempting anyone who’s sick of their savings collecting dust. Is it real? What’s the catch? Is there a secret bank handing out 7% like free biscuits? Let’s pull back the curtain.

Who Really Offers 7% Interest—and the Real Story Behind the Hype

First things first: no major UK bank is out here giving 7% on unlimited cash, no strings attached. If you see a headline rate that high, they’re usually talking about a savings account linked to hoops you’ll have to jump through. For 2025, the headline players have been:

• First Direct Regular Saver: They made waves with a 7% AER (Annual Equivalent Rate) on their Regular Saver, but there’s a cap: you can only pay in up to £300 a month, and the offer lasts 12 months. That’s £3,600 total, earning interest over the term—so the headline 7% is on that balance, not your life savings.
• Nationwide Flex Regular Saver: Matching First Direct at 7%, but again: maximum of £200 per month, and the interest is only on what you manage to deposit over that time. You need to have a current account with them to get this.
• NatWest Digital Regular Saver: Offers 6.17% AER, just a smidge below, but more accessible with a lower minimum deposit and flexible withdrawals. Maximum monthly deposit is £150.
• Halifax Regular Saver: This one is also in the 5%-6% range for regular savers, with similar monthly caps.

It’s not just banks playing this game—some building societies, like Nationwide, occasionally throw out headline rates for specific, limited accounts. Sometimes, these promos are there to grab attention and get you through the door. The main thing to know: the 7% is real, but it’s for people who play by the rules: usually a regular monthly saver, current account holder, and happy with withdrawal limits.

Here’s a look at how those famous rates stack up for the average saver putting away the full monthly limit for a year:

So you’re not likely to make a fortune, but it’s still a tidy chunk above what a normal easy-access savings account pays. And no, you can’t just dump £20,000 in for 7% interest. These banks just won’t let you—if you want those big, headline rates, you have to be happy with smaller regular payments and a maximum balance.

And if you’re tempted by claims of 7% on social media or in dodgy emails—double-check the provider and the product. The FCA has been warning about scammers using fake high-interest savings accounts to lure people in. Always make sure the deal is listed on the official bank or building society website, and check that they’re registered with the FSCS (that’s the Financial Services Compensation Scheme, which covers up to £85,000 if the bank collapses).

Why Do Banks Offer High-Interest Regular Savers?

Banks aren’t being saints here. Regular saver accounts are designed to court committed, long-term customers. Banks often offer those sky-high interest rates to get you to open or keep a current account, or to encourage you to deposit small but steady amounts. It’s a ‘hook’—and once you’re in, they hope you’ll eventually use more of their services.

If you read the fine print, you’ll almost always see the following terms on regular savings accounts with 7% interest:

• You must have a current account with the bank. Sometimes you need to pay in a minimum monthly salary too.
• Withdrawals are limited or may void the interest rate.
• The high rate lasts only for a set term, often one year.
• Limits on how much you can pay in each month and capping the total balance that qualifies for the best rate.

Once your term ends, or if you break the rules, your cash typically rolls into a standard savings account or instant access account with a much lower rate—sometimes as little as 1% or less. So don’t set and forget!

Simon Lambert, Savings Expert at MoneySuperMarket, summed it up in a recent interview:

"Regular savers are a win for both sides: they encourage better savings habits for customers, and generate loyal banking relationships for providers. But if you want true value, you mustn’t ignore the fine print—most people will forget when their regular saver matures and miss the chance to move their money somewhere better."

This approach has caught on because, in the last year, the battle for savers’ cash has gone nuclear. With inflation cooling off and the base rate settling slightly higher, banks are fighting for attention—and those eye-catching 7% offers are the best bait in town for people who read headlines, but maybe not the small print. Savvy savers, though, know that using several accounts (and always keeping an eye on when offers end) is how you really win the interest game.

How to Make the Most Of High-Interest Savings—Smart Tips And Pitfalls

It’s easy to get dazzled by the 7% number and forget to check if it actually works for you. So here’s how regular people get the best return, without spending all day reading Ts&Cs:

• Layer your savings. Start by using regular savers for the highest return on up to £200–£300 per month. When you hit the cap or need to save more, stash the rest in the top easy-access or fixed-rate accounts you can find.
• Set a calendar reminder for the date your regular saver term finishes. This is when your cash will roll into a worse account—so you’ll want to move it to the next best-rate savings account, or start the cycle again.
• Shop around for new regular saver offers every year. Banks often reserve the best deals for new annual cycles—or new customers.
• Don’t panic if you need to miss a payment one month. Most accounts won’t close, but you might lose out on a bit of interest. Always check the terms.
• Don’t fall for scams. Never hand money over to an ‘account manager’ who contacts you out of the blue—always use the official website or branch.
• If you pay tax on savings interest (as happens when you cross the Personal Savings Allowance—£1,000 a year for basic rate taxpayers), consider filling up your ISA first for tax-free savings. The best rates on Cash ISAs can lag a little behind headline regular savers, but you keep all of it.
• Check out combinations. Some savers juggle multiple accounts: use your current account-linked regular saver for daily savings, a top fixed-term or notice account for your main stash, and a tax-free ISA for long-term goals.
• Remember, interest is usually paid annually, not monthly. So if you close the account early, you might lose the whole year’s interest—it’s rarely paid out pro-rata.
• If in doubt, there’s no harm calling or chatting online with your bank’s customer service. They know these offers are confusing and (if you get a helpful human) they can walk you through how to get the most.

One other thing: those 7% deals tend to come and go. As base rates change and the market shifts, banks will pull top deals with little notice. Signing up ASAP is better than waiting weeks for ‘an even better rate’—it might not come.

Remember, getting the best savings rate isn’t about stashing all your money in one account. It’s totally legal—and smart—to spread cash across several banks to get the top rate on each chunk. Lots of people run two or three accounts, setting up standing orders to funnel money between them and scoop up all the best rates. Yes, it’s a little faff in the setup, but after that, it runs itself. And, as thousands of savvy savers found out after 2022, the difference between 1% and 5–7% adds up shockingly fast over just a couple of years.

Here’s a quick checklist if you want to get started with a 7% savings account today:

1. Check eligibility: Do you already bank with First Direct, Nationwide, or NatWest, or are you willing to open a current account?
2. Set up your chosen regular saver and arrange a monthly standing order for the max deposit allowed.
3. Make a calendar reminder for a week before your 12 months are up. Prepare to switch or move your cash as soon as the term ends to avoid dropping to a lower rate.
4. Store copies of your account paperwork and interest terms—some banks only give them digitally now.

Savvy savers don’t just look for one magic account. They mix and match, take advantage of festive deals, and stay alert when their fixed-term ends—because banks love loyal customers who never move their money. Be the customer who always shops for a better deal. There’s no reward for loyalty in savings; the smart move is to follow the numbers, not the logo.

And yes, 7% is possible. It’s real, it’s legit, but like all good things, it comes with limits. Understand those, and you’ll get far more from your money than the folks letting their cash rot at 1%. Isn’t that what saving’s really about?