Brief

Top cash ISAs and easy‑access savings accounts hit 5% in October 2026

Cahoot, Starling, Lemfi and others lead the market with 5% rates, but each comes with specific balance caps or bonus periods.

By Felo News Desk · Published Fri, 02 Oct 2026 20:06:24 GMT

Independent UK reports that a range of easy‑access savings accounts and cash ISAs are offering roughly 5% interest at the start of October 2026, allowing savers to earn about £150 a year on a £3,000 balance.

What happened

The article lists three free‑to‑open easy‑access savings accounts that have reached the 5% milestone. Cahoot, owned by Santander, provides a straight 5% rate but only on balances up to £3,000, with the account closing after 12 months. Starling Bank launched a new 5% account that includes a six‑month bonus; after the bonus the rate falls to 2.5%, delivering an effective annual rate of about 3.8% on £3,000. Lemfi also offers a 5% rate with a six‑month bonus before dropping to 3.04%.

What the reports add

Independent notes that Starling’s bonus applies to balances up to £25,000, meaning a £25,000 deposit could generate roughly £630 of interest in the first six months before the rate reverts. Below the 5% tier, the outlet mentions Zopa Bank (4.56% with a three‑withdrawal limit), Tembo (4.55% plus an extra 1% for mortgage‑service users) and Cynergy Bank (4.55% with no limits). Chase’s new regular saver, launched the same week, offers a 4.5% easy‑access account for new customers.

What was said

The piece does not contain direct quotations; all figures are presented as product details.

How it came about

Earlier Felo News coverage highlighted that UK savers hold over £300 billion in low‑interest accounts and that savings platforms can help compare rates (UK Savings Week). The current 5% offers represent a significant jump from the 1.5% average on many accounts, reflecting competition among banks and building societies to attract deposits as interest‑rate expectations remain high.

Key facts

Cahoot offers a 5% easy‑access savings rate on balances up to £3,000, with the account closing after 12 months. (independent.co.uk)
Starling’s 5% account includes a six‑month bonus, then reverts to 2.5%, giving an effective annual rate of about 3.8% on £3,000. (independent.co.uk)
Lemfi provides a 5% rate with a six‑month bonus before dropping to 3.04%. (independent.co.uk)
Zopa Bank, Tembo and Cynergy Bank offer rates between 4.55% and 4.56% with various withdrawal or service conditions. (independent.co.uk)
A £3,000 balance at a 5% rate would earn roughly £150 in interest over a year. (independent.co.uk)