Spring has launched a savings account paying 5 per cent on balances up to £5,000.

It's called Accelerate Saver and is now a best-buy that has rocketed to the top of the This is Money independent savings tables.

Cahoot's Sunny Day Saver has long been in pole position, also paying 5 per cent interest.

However this is on balances of up to £3,000, meaning Spring's new app-only account leaps to the top by giving those with more money to save the chance to earn more interest.

Spring says that Britons are holding £322billion in current accounts paying no interest.

And across all of these, the average balance stands at £4,008 – so many are missing out on earning interest on a decent chunk of money.

Derek Sprawling, head of money at Spring, said: 'By moving even a portion of those funds into a dedicated savings account, people can take a simple step towards making their money work harder.'

According to the rates scrutineer Moneyfacts, the number of savings accounts paying above base rate rose to 1,412 this month, which is the highest level since July 2012.

The Bank of England base rate is 3.75 per cent, so savings accounts paying 5 per cent interest beat this comfortably.

Savers can open Spring's Accelerate Saver with a minimum deposit of £10. If you deposit the maximum £5,000 into the account and receive 5 per cent interest over a whole year, you'd earn £250.

Spring is only available as an app so you must be comfortable with managing your money using your phone.

It's part of the larger Paragon Bank, a specialist lender and savings bank. Your combined Paragon Bank and Spring deposits are protected for up to £120,000 under the Financial Services Compensation Scheme.

Earlier this month another new savings account launched – an instant access one from the new platform First Active.

This savings provider is also part of a wider group, with First Active being a new digital-first offering from NatWest.

The account pays 4.5 per cent interest but comes with a familiar catch. It includes a fixed bonus rate of 1.5 per cent for 12 months, making the underlying rate a less enticing 3 per cent variable.

You can open the account with £1 and the maximum balance is £1million.

Saga is offering a rate that matches the First Active account at 4.5 per cent. This includes a 1.64 per cent bonus for 12 months, so the First Active account has a better underlying rate.

Keep in mind that these accounts aren't Isas, so any interest you earn over your personal savings allowance is taxable.

> Read more: How do Isas work? The essential guide 

If you still have your £20,000 tax-free Isa allowance to use and are happy to lock your money away for at least a year, top rates are shifting in favour of longer-term Isa savers according to Moneyfacts.

The average one-year fixed Isa rate rose to 4.24 per cent in August 2026, compared with the average one-year fixed rate on a normal savings account reaching 4.23 per cent.

While the top paying one-year Isas don't quite reach 5 per cent, you'll get the certainty of a fixed rate and can stash much more away than the £3,000 or £5,000 that's possible in the best-buy Cahoot and Spring accounts respectively.

Vanquis Bank is paying 4.69 per cent on its one-year fixed-rate Isa. 

The minimum deposit is £1,000 and you can transfer in from other providers.