Maybe it’s taken years of diligent saving or the sale of a property or business. Perhaps it was a gift or inheritance. Or maybe you’ve enjoyed some other unexpected windfall. Either way, if you have over £100,000 in a current account, it’s likely you’re wondering what the best savings account might be for you.
So, let’s cut to the chase. What is the best account? The short answer is that there isn’t one.
You need to think about how easily you want to access your money, the various tax, interest, and inflation considerations that might impact your return, and the level of protection you have should a bank, building society, or credit union cease trading.
With all that in mind, it can make sense to spread your savings across multiple accounts.
Share how a platform like Insignis can help you manage a large savings pot with ease
Note: We’re here to help, but the contents of this article are for informational purposes only. They do not constitute financial advice. For that, you should consult a qualified independent financial adviser.
With such a large lump sum, you need to be sure your money will be safe in your chosen savings account(s). That’s where the Financial Services Compensation Scheme (FSCS) comes into play.
The scheme protects savings in the UK if a bank, building society, or credit union fails. It guarantees up to £85,000 per person, per institution. This means that if your bank collapses, you'll be reimbursed up to that amount.
But when you have over £85,000 to save, you’ll need to spread the money across several different banks, building societies, or credit unions (each with distinct banking licences) to ensure you’re fully protected. By depositing no more than £85,000 in each institution, you can safeguard the entire amount under FSCS rules, preventing loss should one or more institutions collapse.
When choosing a new savings account, think about your short and long-term goals. Do you want high returns, quick access to your money, or the best of both worlds?
High-interest accounts often limit your access, while easy-access accounts offer flexibility, but usually at the expense of lower returns (more on these options below).
Both tax and inflation can impact the amount of interest your savings earn (and the overall value of your savings pot). Here’s how:
As we’ve discovered above, keeping £100,000 in one single savings account may not be the best move for your money.
Instead, it often makes sense to spread the risk by keeping the balance below the FSCS protection level of £85,000 — and that means splitting your savings into multiple accounts.
Note: Ask your financial adviser about Insignis — our platform helps you optimise FSCS coverage.
Here are 4 different types of UK savings accounts you might want to consider. You could use a combination of these accounts, depending on your short and long-term goals.
Top line: This aptly-named savings account gives you instant access to your money, but usually comes with lower interest rates.
An Easy Access Savings Account is a popular option for large sums of money, and with good reason. It gives you complete flexibility with your cash, allowing you to withdraw money as and when required (usually without any penalties or charges — although this depends on the provider). This can make an Easy Access Account the ideal choice for an emergency fund.
However, it’s worth noting that many Easy Access Savings Accounts come with a variable interest rate (meaning the rate can go up or down), and the rate is usually lower than some of the other options available.
Top line: These types of savings accounts offer slightly higher interest rates than Easy Access Accounts, but require advance notice to withdraw funds.
A Notice Account works in a similar fashion to a typical savings account, only you need to give the provider notice before taking money out (usually 30, 60, or 90 days, although sometimes longer).
This gives you a degree of flexibility while benefiting from a higher interest rate. A Notice Account might work for you if you can plan withdrawals in advance (for example, you know a payment for a holiday is on the horizon, and you can time the withdrawal to cover it).
Top line: As the name suggests, the interest rate is fixed for a set period. Your savings are then locked away (typically for between one and five years) to earn a fixed return.
A Fixed-Rate Savings Account (also known as a Fixed-Term Bond) locks your savings away to earn a fixed interest rate over a set period, called a “term”. You generally can’t add to your savings during this time, and while you can access them, you’ll be charged an early withdrawal fee, which might offset the amount of interest you earn.
A Fixed-Rate Account might make sense for you if you’re planning a significant purchase further down the line (like putting a deposit down on a property). That way, you know your money is securely locked away, earning interest.
Top line: A Cash ISA (Individual Savings Account) offers a tax-free way of earning interest on your cash, while giving you flexible access to your money.
Cash ISAs are a popular savings account option, and can form the basis of a good savings portfolio. As of April 2024, you can now open and pay into as many ISAs as you like, up to the overall limit of £20,000 (for the 2024/25 tax year).
With a Cash ISA, you can also choose between a fixed or variable interest rate. Fixed-rate accounts tend to have a higher interest rate but may require you to leave your money for a set period, whereas variable rates can be lower (and fluctuate) but give you instant access to your cash.
Be aware that if you deposit £20,000 into an ISA and then make a withdrawal, you’ll need to wait until the next tax year for your annual limit to reset before making another deposit.
Spreading £100K in savings across various traditional savings accounts is usually a safe option — but it’s not your only option.
Here are a few alternatives:
Although a little harder to find nowadays, if you shop around, you could open a current account with a higher rate than some savings accounts or ISAs. They also work like a standard bank account, giving you quick and easy access to your money.
However, there are usually some strings attached. You typically need to make a monthly minimum deposit into your account, and there can be limits on how much of your balance will be eligible for interest (for example, the first £2,000).
Still, you might want to consider a high-interest current account as another option if you’re looking to spread your savings across multiple accounts to maximise returns.
Disclaimer: Before opening any new savings, current, or investment accounts, we recommend speaking with an independent financial adviser.
This MoneyHelper article shares some tips to help you choose the right one.
There are several advantages (and a few disadvantages) to opening and maintaining a high-balance savings account.
Let’s start with the pros:
Luckily, these disadvantages can be largely overcome by selecting the right savings accounts for your lump sum. When you save with Insignis Cash, we help make this simple.
When you add your savings to our award-winning platform, you get access to:
From Easy Access accounts to 5-year Fixed-Term products, you have the freedom to pick and choose the perfect mix of savings accounts for your current and future goals.
Note: The minimum deposit size is £100,000.
To recap, there’s no one best savings account in the UK for £100,000.
Instead, if you have £100,000 in savings or you’re trying to capitalise on a major liquidity event, like a property sale or inheritance, it can make sense to spread your savings across several accounts.
That way, you can take full advantage of FSCS protections and pursue a mix of short and long-term goals, all while minimising tax and ensuring access in case of emergency.
Do you have £100K in savings and you’re unsure where to put it?
Request an illustration to see how much interest you could be earning with Insignis.
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