Savings and Interest
TL;DR: This hub gathers our UK savings guides in one place: how ISAs work, easy access versus fixed rate accounts, and how much emergency fund to keep, with the current allowances and protections.
Start here: the core guides
- Cash ISA vs Stocks and Shares ISA, the £20,000 allowance, the April 2027 cash ISA cap for under 65s, and which suits your money.
- Easy Access vs Fixed Rate Savings Accounts, flexibility against certainty, what AER means, and how the 3.75% base rate feeds in.
- Emergency Fund: How Much Should You Save, MoneyHelper’s 3 to 6 month rule and how to build it from nothing.
- Best Savings Account UK, comparing homes for your cash.
- Best Savings Accounts UK 2026, the 2026 shortlist.
- Bank of England Base Rate, where the base rate stands and why savers should care.
Key facts at a glance
| Fact | Detail |
|---|---|
| ISA allowance 2026/27 | £20,000, and the full amount can still go into cash ISAs this tax year |
| Cash ISA cap from 6 April 2027 | £12,000 a year for under 65s (65+ keep £20,000; existing balances unaffected) |
| FSCS cash protection | £120,000 per person, per UK regulated institution (from 1 December 2025) |
| Bank of England base rate | 3.75%, held 17 September 2026 |
| AER | Annual Equivalent Rate: the total interest over one year, as a percentage. Compare on this. |
Frequently asked questions
Should I save or invest?
MoneyHelper’s rule of thumb: save for anything you need within five years and for emergencies; only invest money you will not need for at least five years, accepting it can fall in value.
Is my savings protected if my bank fails?
Cash with a UK regulated institution is FSCS protected up to £120,000 per person, per institution. Spread larger sums across institutions.
What does AER tell me?
The total interest you would earn in a year, as a percentage, accounting for compounding. It is the fairest way to compare accounts.
Figures checked 30 September 2026. Written and maintained by emily harrington. General information only, not financial advice.