The best savings account for £50,000 is likely to be the one that pays you the most interest while giving you the level of access that you need. You can usually get a better rate if you're willing to give a certain amount of notice before making withdrawals or to commit to not making withdrawals at all for an agreed period. Plus, since you can invest £20,000 each year into an ISA, part of your savings can earn you tax-free interest. We scour savings rates daily to help you find a good home for your hard-earned £50,000.
We scan the savings market daily and automatically update the best offers highlighted throughout this guide.
What is the best interest rate for £50,000 savings?
If you haven't already used your 2024/2025 ISA allowance of £20,000, then consider splitting your £50,000 into 2 (or more) accounts so that you can make the most of your tax-free savings allowance.
In terms of tax-free savings, Chip is currently offering 5.1% on an easy access ISA. If you're happy to give 30 days notice before making any withdrawals, then Monument Bank is currently offering 5.13%. If you're happy to consider a fixed-rate ISA (where you won't be able to access your savings during the fixed term), you could earn 4.8% over 12 months with Punjab National Bank (International) Limited.
For the remaining £30,000, outside of ISAs, you could earn 5.05% with easy access at Paragon Bank, 5.3% on DF Capital's 90-day notice account or 5.22% on Gatehouse Bank's 6-month fixed-rate bond (note that you typically can't access your money at all with a fixed-rate bond).
Summary of best rates on £50,000
| Best easy access | Chip – Chip Cash ISA (powered by ClearBank) (5.1%) |
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| Best cash ISA | West Brom Building Society – WeBuilding Societyave 60 Day Notice ISA (Issue 2) (5.1%) |
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| Best fixed-rate bond | Gatehouse Bank – 6 Month Fixed Term Woodland Saver (5.22%) |
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| Best notice account | DF Capital – 90 Day Notice Account (Issue 1) (5.3%) |
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| Best current account | Kroo (4.35%) |
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Even greater returns may be possible with investment products such as a stocks and shares ISA, if you're willing to risk getting back less than you originally invested. Only consider stocks if you won't need to spend the money for several years (5 years is a widely-used rule of thumb).
How much interest will I earn on £50,000?
With £50,000 in Paragon Bank's easy access account paying 5.05%, you could earn £2,525.00 over a year, or £210.42 per month. DF Capital's 5.3% 90-day notice account would pay £2,650.00 over a year (£220.83 monthly) on £50,000, while Gatehouse Bank's 6-month fixed rate bond would pay £2,610.00 over a year (£217.50 monthly).
If you opted to put the first £20,000 of your savings into an ISA, that could earn £1,020.00 over a year, or £85.00 per month in Chip's easy access cash ISA paying 5.1%. £20,000 in Aldermore's 4.5% 30-day notice account would pay £900.00 over a year (£75.00 monthly), while £20,000 in Punjab National Bank (International) Limited's 4.8% 1-year fixed-rate ISA would pay £960.00 over a year (£80.00 monthly).
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FAQs
5% APY: With a 5% CD or high-yield savings account, your $50,000 will accumulate $2,500 in interest in one year. 5.25% APY: A 5.25% CD or high-yield savings account will bring you $2,625 in interest within a year.
Where can I get 5% interest on my savings account? ›
Best savings rates of 5% or more
- BrioDirect, 5.30% APY.
- Ivy Bank, 5.30% APY.
- TAB Bank, 5.27% APY.
- Jenius Bank, 5.25% APY.
- UFB Direct, 5.25% APY.
- Upgrade, 5.21% APY.
- Bread Savings, 5.15% APY.
- EverBank, 5.05% APY.
5% APY: With a 5% CD or high-yield savings account, your $50,000 will accumulate $2,500 in interest in one year. 5.25% APY: A 5.25% CD or high-yield savings account will bring you $2,625 in interest within a year.
What bank has highest interest rate on savings account? ›
The highest high-yield savings account rates today are offered by First Community Bank (6.00%), MyBankingDirect.com (5.55%), and Sovereign Bank (5.40%). The high-yield savings accounts we highlighted offer interest rates from 4.75% to 5.25% – at least 10 times the national average on traditional savings accounts.
Which bank gives 8% interest on savings accounts? ›
Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts. These include Landmark Credit Union Premium checking account with an APY of 7.50%, and OnPath Credit Union High Yield checking account with an APY of 7.00%.
Where can I make 5% on my money? ›
Summary of the Best 5% Interest Savings Accounts of 2024
| Account | Forbes Advisor Rating | Annual Percentage Yield |
|---|
| M1 High-Yield Savings Account | 4.3 | 5.00% |
| Bask Interest Savings Account | 4.2 | 5.10% |
| UFB Secure Savings | 4.1 | Up to 5.25% |
| Salem Five Direct eOne Savings | 4.0 | 5.01% |
1 more row5 days ago
Savings accounts with 5% APY or higher
| Bank | APY | Min. deposit to open |
|---|
| CIT Bank | 5.00% (on balances of $5,000 or more) | $100 |
| DollarSavingsDirect | 5.00% | $0 |
| CommunityWide Federal Credit Union | 5.00% | $1 |
| Varo Bank | 3.00% to 5.00% | $0 |
12 more rowsMay 25, 2024
How much of a difference does this make? If you deposit $50,000 into a traditional savings account with a 0.46%, you'll earn just $230 in total interest after one year. But if you deposit that amount into a high-yield savings account with a 5.32% APY,* your one-year interest soars to over $2,660.
How to turn 50K into 100K? ›
How To Turn 50K Into 100K – 10 Realistic Methods To Try!
- Start An Online Business.
- Invest In Real Estate.
- Invest In Stocks & ETFs.
- Invest In A Blog.
- Retail Arbitrage.
- Invest In Alternative Assets.
- Create A Rental Business.
- Invest In Small Businesses.
You might be reluctant to put your money in high-risk investments, like stocks. However, for potentially higher returns over a longer period, a certificate of deposit (CD) could be a great place to put your $50,000.
If your goal is to lock in a high rate of interest on funds you don't need to access for a period of time, a CD might be your best option. However, a high-yield savings account may be the better choice if you want to earn solid interest on your savings while still keeping the money relatively accessible.
Where can I get 7% interest on my money? ›
Which bank gives 7% interest on a savings account? There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.
Who has the highest paying CD right now? ›
Best 1-Year CD Rates
- Abound Credit Union – 5.25% APY.
- Mountain America Credit Union – 5.25% APY.
- KS State Bank – 5.25% APY.
- Forbright Bank – 5.25% APY.
- Merchants Bank of Indiana – 5.25% APY.
- Seattle Bank – 5.25% APY.
- Bread Savings – 5.25% APY.
- Utah First Credit Union – 5.25% APY.
Yes, 5% interest savings accounts are a legitimate offering that you can find at many banks and credit unions. One way to make sure your money is secure is to check that the account is protected by FDIC or NCUA insurance.
How do I get 10% interest on my money? ›
Here's my list of the 10 best investments for a 10% ROI.
- How to Get 10% Return on Investment: 10 Proven Ways.
- High-End Art (on Masterworks)
- Invest in the Private Credit Market.
- Paying Down High-Interest Loans.
- Stock Market Investing via Index Funds.
- Stock Picking.
- Junk Bonds.
- Buy an Existing Business.
If you plan to take advantage of high interest rates this year, you might be wondering if your high-yield savings account interest is taxable. The answer is yes, but these types of accounts can offer the potential for significant savings, so don't let that discourage you from opening one.
How can I get a 5% interest rate? ›
Best 5% interest savings accounts
- Best for earning a high APY: My Banking Direct High Yield Savings Account.
- Best for low minimum deposit: Western Alliance Bank High-Yield Savings Account.
- Best for ATM card: UFB Secure Savings.
- Best for money market account: CFG Bank High Yield Money Market Account.
So, if you earn 5% on yours, you're not only beating the national average savings account return by more than 10 times, but you're enjoying one of the most competitive rates on the leading high-yield savings account options. So, what does 5% interest mean in terms of cash returns?
Which US Bank gives 7% interest on savings accounts? ›
Currently, there are no banks with savings accounts that offer a 7% interest rate. If you can find a savings account with a 7% APY, you'll earn about 15X more than the national savings rate.
Where can I make 10% interest on my money? ›
Where can I get 10 percent return on investment?
- Invest in stocks for the short term. ...
- Real estate. ...
- Investing in fine art. ...
- Starting your own business. ...
- Investing in wine. ...
- Peer-to-peer lending. ...
- Invest in REITs. ...
- Invest in gold, silver, and other precious metals.
