Where to Get 7% Return – Best UK Savings Choices for 2025

Seeing a 7% interest rate on a savings product feels like a miracle, especially when most accounts hover around 1%–2%. The good news is that a few UK banks and niche products still push that high‑yield figure, but they come with strings attached. This guide breaks down where you can actually see a 7% return, what you need to watch out for, and how to lock in the best deal without taking unnecessary risk.

High‑Yield Savings Accounts That Promise 7%

Some challenger banks and online‑only institutions run promotional offers that hit the 7% mark. Typically, these rates apply to new customers, limited balances (often £5,000‑£10,000), and a fixed term of 12‑18 months. After the promo ends, the rate usually drops back to the market average.

To make the most of these offers, follow three simple steps:

• Check the eligibility rules. Most deals require you to set up a brand‑new account and keep the money untouched for the promo period.
• Verify the maximum qualifying balance. If you deposit more than the limit, the excess earns the lower standard rate.
• Read the fine print on withdrawals. Early withdrawals often trigger a penalty or instantly revert the rate to the base level.

Examples of banks that have run 7% promotions in the past include certain digital‑only savings platforms and a few credit‑union‑style institutions. Keep an eye on their websites or sign up for alert newsletters – the offers pop up a few times a year, usually around the start of the financial year.

Fixed‑Term CDs, Bonds, and Other Tricks

If you prefer a product that isn’t tied to a promotional window, look at fixed‑term certificates of deposit (CDs) or short‑term bonds. In 2025, a £10,000 CD with a 12‑month term can still deliver close to 7% when you shop around the market. The key is to compare the annual percentage yield (APY) rather than just the headline rate, because some banks quote the nominal rate and hide fees.

Another option is a “high‑interest cash ISA” that bundles a fixed‑rate CD inside a tax‑free wrapper. This gives you the 7% return plus the benefit of not paying tax on the interest. However, the ISA contribution limit (currently £20,000 per year) caps how much you can park in the product.

For risk‑averse savers, government‑backed bonds with a 7% coupon are rare but occasionally appear in the secondary market. Buying them through a brokerage can net you the yield, but you’ll need a decent amount of capital and a willingness to hold until maturity.

Whatever route you choose, always ask yourself two questions before you lock in:

1. Can I afford to leave the money untouched for the full term?
2. Do I understand the penalty for early withdrawal?

If the answer is yes, a 7% return is within reach. If not, a lower‑rate, more flexible account might serve you better.

Finally, remember that high‑yield offers are competitive tools for banks to grow their deposit base. That means they can disappear overnight. Set up alerts, act quickly when you spot a deal, and keep a spreadsheet of the rates you’ve compared. This habit will save you time and help you capture the best 7% opportunities whenever they arise.

In short, the 7% return isn’t a myth, but it’s not a permanent fixture either. By watching promotional calendars, comparing CD APYs, and using tax‑free ISAs where possible, you can turn a high‑interest offer into a solid boost for your savings stack.