Do banks offer better savings rates if you have a current account with them?
NB As of 24th August 2026, the Regular Saver pot is no longer available to new customers.
Some banks do offer their current account customers a better deal on savings, but not always by much. In this guide, we’ll explain what to look out for. If you want a broader overview first, our current accounts guide covers the different types of current account and what to look for when comparing them.
The quick answer: sometimes, but not always
A handful of banks do offer preferential savings rates or bonus interest to customers who also hold a current account with them. But it’s always worth comparing what else is out there before assuming your bank’s savings deal is a good one just because you’re already a customer.
How banks use current accounts to offer savings rates
Bundled banking packages
Some banks bundle savings perks into their current account: a higher rate on easy access savings, interest on your everyday balance, or exclusive savings products for current account customers.
With Biscuit, that boost comes from your everyday interest rate rather than a separate pot. Choose it as your benefit (instead of cashback on your Direct Debits or eating out), and your current account balance itself earns more, with no separate product to open or maintain.
Account loyalty rewards
Some banks reward long-standing current account customers with better savings rates as a loyalty perk. It’s a nice idea, but a loyalty rate isn’t always the most competitive – worth checking before you assume you’re getting a good deal.
Premium current account tiers
Premium current accounts (those with a monthly fee) sometimes include higher savings rates. The question is whether the interest you earn outweighs the monthly cost – at £15 a month, you’d need a substantial balance to make it worthwhile.
What is a linked savings account?
A linked savings account is a savings account held at the same bank as your current account, connected so that moving money between them is usually instant. You can top up or dip in without any waiting around. Most are easy access, though some come with a notice period or fixed term.
It’s worth knowing that linked and bundled mean different things. A linked savings account simply means your savings and current account sit at the same bank and are easy to manage together. An exclusive savings product is different, it's a separate account only available to that bank's own current account customers, not a feature that's automatically attached.
Comparing linked savings vs. standalone savings accounts
| At a glance | Linked savings (same bank) | Standalone savings (different bank) |
| Convenience | Instant transfers, one app | Two different logins/apps |
| Rates | Modest, sometimes preferential | Often more competitive, especially fixed term |
| Setup | Quick: you're already a customer | New application required |
| Best for | Simplicity and a singly view of your money | Securing the strongest rate |
In short: keep your savings linked if you want everything in one app and a decent rate without extra admin. Go standalone if a specific fixed-term deal beats what's on offer at home. Plenty of people do both – some savings close to the current account, the rest wherever the best rate happens to be.
Advantages of linked savings accounts
The main appeal is convenience. You can see your current account and savings balance in one place, transfer money instantly, and manage everything through a single app or online banking portal.
When standalone savings accounts may suit you
A standalone savings account, one held at a different bank to your current account, can sometimes offer stronger rates. That’s especially true for fixed term products, where you’re willing to lock money away for a set period. You can open one with any bank, regardless of where your current account is. Zopa’s Smart Saver offers easy access pots, notice pots and fixed term pots, all in one account.
How to calculate real returns
AER (annual equivalent rate) is the standardised way to compare interest across accounts, it factors in monthly compounding, so it's typically a touch higher than the gross rate some providers quote instead. We've explained exactly how that works, with a worked example, in our guide to whether current accounts pay interest.
Before committing to any account, it's worth doing a quick calculation. Take the AER on offer, apply it to your actual balance, and work out what you'd earn in pounds over 12 months. Then do the same for the best rate you can find elsewhere.
When bundled banking has hidden costs
Fees vs. what you earn
Not all bundled savings benefits are genuinely free. Premium current accounts can charge anywhere from £5 to £25 a month. If a better savings rate is the main reason you’re paying that fee, it’s worth running the numbers.
Use the AER when comparing. It’s the standardised figure that shows what you’d earn over a full year, regardless of how often interest is paid. The Financial Conduct Authority (FCA) recommends using AER as the fair way to compare savings accounts, and its savings calculator is a useful tool.
As a quick sense check: if a fee-linked savings rate is only 0.2% higher than a free alternative, you’d need a £90,000 balance to earn enough extra interest to cover a £180 annual fee. For most people, that maths rarely works out.
Minimum balance requirements
There's usually a minimum to unlock the improved rate – but there can be a ceiling too. "There's often a maximum balance that qualifies for the top rate," notes James. "You might be advertised that headline figure, but saving anything above it will earn interest at a lower rate."
Check both ends before you open an account, not just the one that's advertised.
"Current account linked rates often come with strict qualifying criteria – actions or habits you need to maintain to be eligible," James adds. "Banks couch these as primary banking behaviours: a couple of Direct Debits, a certain amount of card spend, or a monthly deposit that looks like a salary."
It's worth checking what you need to keep doing to hold on to a linked rate, not just what the rate is.
Get Biscuit with the Zopa app
Which banks offer savings interest on current accounts?
Some UK banks, including Zopa, pay interest directly on your current account balance, so your everyday money earns a return without you needing to move it anywhere. Biscuit's a good example. You'll earn 1% AER* variable on your balance as standard, with no minimum balance and no monthly fee, or 2.75% AER* (2.72% gross**) variable if you choose the boosted rate as your benefit.
Not all banks do this, and the rates on offer vary widely between providers. It’s worth checking your current bank’s terms to see whether your balance is earning anything – three in four UK account holders don't know the exact rate their current account pays, and over a quarter assume they're earning nothing at all*** – so you might be surprised.
Are savings accounts with my bank better than switching?
You can open a standalone savings account with any bank or building society, regardless of where your current account is. That gives you the flexibility to put your money wherever the rate suits you best.
That said, there are genuine benefits to keeping things simple. Having your current account and savings in one place means a clearer picture of your finances and less to manage. The key is making sure the rates are competitive – not just convenient.
Tips for getting the best savings rates
Compare before you open
Before opening a linked savings account with your current bank, it’s worth doing a quick check on what else is available. Comparison sites like MoneySavingExpert are a useful benchmark.
Get more from your savings in one place
You don’t need to use multiple banks for different types of savings. With Zopa, you can earn interest on your everyday balance if you switch your current account to Biscuit, then set money aside in an easy access, notice or fixed term Smart Saver pot – all in one app.
Keep an eye on your rate
If your account isn’t fixed term, savings rates can change, so it’s worth checking in every few months. If you’re on a strong rate now, make a note of when any introductory period ends. MoneyHelper’s savings guidance has practical advice on staying across what your savings are earning.
Key takeaways
Whether your bank’s savings rate is competitive depends entirely on how it compares to what else is out there
Linked accounts are convenient, but convenience isn’t the same as good value
Fee-paying accounts only make sense if the interest you earn covers the cost
For the strongest rates, specialist providers usually beat loyalty – though Zopa gives you both, with interest on your everyday balance alongside Smart Saver for money you want to set aside
Ready to make your money work harder?
Download the Zopa app and open a Biscuit bank account in a few minutes.
AER stands for 'annual equivalent rate'. We pay you interest on a monthly basis, but AER shows you the rate you'd get if this monthly interest was compounded and paid once a year instead. We provide an AER to make it easier for you to compare our rates with other providers. **We pay gross interest, so nothing is deducted for tax, and because the rate's variable, it can go up or down; we'll always let you know if it changes.
***Censuswide consumer survey of 2,000 nationally representative UK adults, 5-8 June 2026.
