Banks · explainer
High street vs. online banks
Same protection, very different rates. Here’s what actually differs, with today’s numbers.
Average easy-access rate we found
Simple average of the headline rates in our comparison, 9 November 2026. Online includes intro rates.
TL;DROnline banks pay more on savings right now. High street banks pay more to switch your current account.
| High street banks | Online banks | |
|---|---|---|
| Savings rates | Usually 0.75%–2% on easy access | Usually 2.8%–4.5%, often with an intro bonus |
| Switching bonuses | Common: £175–£300 right now | Rare — they compete on rates and features instead |
| Branches | Yes, though fewer each year | None — app and phone support |
| Paying in cash | At branches and the Post Office | Usually through the Post Office or PayPoint; some charge a fee |
| Spending tools | Improving apps | Instant notifications, pots, spending categories as standard |
| FSCS protection | Up to £120,000 per person, per licence | The same, for banks with a UK licence |
TL;DRIt comes down to what you value: branches and switching bonuses, or higher rates and a better app.
Worth knowing
Brands can share one licence
HSBC and First Direct are the same bank for FSCS purposes, so £120,000 covers both combined. Check the FSCS website if you hold more than the limit.
You don’t have to choose one
Plenty of people keep a high street current account for the switching bonus and branch access, and save with an online bank for the rate.
Intro rates end
Starling’s and Chase’s top rates last 6 and 12 months. Put a reminder in your calendar for the day they drop.
Facts, not recommendations. We aren’t paid by any bank and we don’t rank by who pays us. Rates and offers change often — checked 9 November 2026. Always read the provider’s terms before you open or switch an account.
Your 5-minute move
See what your savings earn
Put your balance into the comparison and see the yearly interest at each bank.
- Moneyfacts — Easy access savings accounts — rates at 6 November 2026
- Which? — Best bank account switching deals, November 2026 — published 4 November 2026
- Bank of England — FSCS deposit limit increased to £120,000 — from 1 December 2025
- FSCS — Check if your money is protected