Building a savings pot is always invaluable, but over the next few months it could become more important than ever to protect you from storms that lie ahead.

Household bills are surging once again due to the Iran war – especially petrol and food prices. The risk of unemployment is increasing as firms battle soaring taxes and attempt to make savings using AI. Mortgage costs are likely to rise again if interest rates are notched up to beat inflation. Household finances are being buffeted about amid this perfect storm – but having a nest egg saved and helping it to grow can be a lifesaver.

But finding a good home for your savings can be a daunting task, especially when there are thousands of savings accounts to choose from.

The best savings strategy – and the right account for you – depends on your goals, how much you have already set aside and how quickly you need to access it.

Starting small with round-ups each time you spend money and making regular monthly savings can soon lead to a sizable pot, meaning avoiding a tax bill and investing for the long-term start to become a priority.

Brian Byrnes, director of personal finance at savings app Moneybox, says: 'No matter the size of your savings pot, having a clear plan for your finances really makes a difference.

'Whether you're starting out or managing a more substantial amount, building good habits, setting clear goals and ensuring your money is working in the right way for your timeframe are key.'

There are golden savings rules you should follow, whether you have just a few pounds to spare or more than £100,000 in the bank. Here, Money Mail's Sylvia Morris names the best accounts and top rates currently on the market.

The Just Starting Saver: £0-£1,000

For first-time savers, the priority is to build an emergency fund. The typical advice is to have between three and six months' worth of essential outgoings in an easy-access account in case of an emergency or unexpected outlay, such as a broken boiler or loss of income.

Derek Sprawling, head of money at the savings app Spring, says: 'Look at how much money is coming in each month and what your outgoings are so you can set a realistic budget and work out how much you can put aside. Every little helps and it is really motivating to watch that nest egg grow.'

A regular saver account is a great place to start. These offer eye-catching rates of interest but come with limits on how much you can save, making them ideal for anyone squirrelling away smaller amounts.

The First Direct Regular Saver pays 7 pc interest on up to £300 a month and you can open it if you have a current account with the bank, says Sylvia Morris. Those who max out the account will save £3,600 over a year and earn £136.50 in interest. Co-Op Bank's Regular Saver also pays 7 pc but only on up to £250 a month. Over a year you could save £3,000 and earn £114.21 interest.

Andrew Hagger, from the personal finance website Money Comms, says: 'Set up a standing order to go out of your bank each payday rather than wait until the end of the month when there may not be any spare cash left.'

Look to what your current account provider has on offer. It may be easy to set up a regular savings account with them, but it is worth shopping around to find an account that suits your needs.

Be sure to check the terms – savers may need a current account with the bank to open the best savings accounts.

Those able to save more should stick to easy-access accounts. Hagger likes the Spring Easy Saver, which pays 3.82 pc. 'It's no strings and easy to manage via your mobile phone,' he says.

Make use of banking app features that can help boost a savings pot with no effort. Round-ups, as the name suggests, round your spending to the nearest pound and put the difference into a savings account of your choosing. For example, a £1.86 purchase would be bumped up to £2, with 14p going into savings.

It might not sound much, but small amounts can quickly add up. Moneybox, the savings app, says its customers save on average £12.37 a week using round-ups – equivalent to £643.24 a year.

The Steady Saver: £1,000-£10,000

It's not enough to just have cash in the bank sitting in your current account, it needs to be working for you. Ensuring your money keeps pace with inflation is crucial, otherwise the value of your savings is actually falling in real terms each year. Inflation is currently 3.3 pc, so aim to find an account that pays more than this.

Spring analysis of CACI data found that 6.5 million current accounts hold more than £10,000 but earn zero interest. In total, some £230 billion is sitting in these accounts.

Byrnes says: 'Those with up to £10,000 should be looking to strengthen their emergency buffer, but they can also start setting goals beyond that, looking at their short and long-term ambitions for their money.'

Easy access is still a priority here, but already having a lump sum of money ready to transfer might help you snag a better rate. Rachel Springall, from the comparison site Moneyfacts Compare, suggests the Cahoot Sunny Day saver – you need £1,000 to open the account and it pays 5 pc on up to £3,000.

Those confident they won't need immediate access to all of their cash could consider a notice account. These allow withdrawals, as long as you give advance notice to the bank – usually 30 days but sometimes longer. Morris points to Stafford Building Society's 180-day notice account, which pays 4.26 pc. But the savings expert warns you'll need a minimum deposit of £5,000. You can get 4.16 pc online with Shawbrook Bank with a shorter 45 days' notice period, she adds.

Again, be sure to check the terms – even some easy-access savings accounts have restrictions on withdrawals. Falling foul of these rules can mean your interest rate is reduced or that you forfeit some of the interest you have already earned.

For example, Aldermore's Reward Isa Single Access Account pays 4.11 pc, but this drops to 2.9 pc for those who make more than one withdrawal a year from their account, Morris adds. Nationwide's 1 Year Single Access Saver pays 4 pc but falls to a measly 1.05 pc after one withdrawal.

The Serious Saver: £10,000-£50,000

At this stage in their savings journey, savers must start thinking about tax. Many people don't realise, but interest earned from savings is treated like any other income and could be taxable.

The number of savers who paid tax on savings interest more than doubled from 1.3 million in the 2022/23 tax year to 2.8 million in 2025/26, so it's important to avoid joining their ranks if you can.

Under the 'personal savings allowance', basic-rate taxpayers can earn £1,000 from savings interest tax-free – any further interest is taxed at their usual rate of 20 pc. Higher-rate payers get a £500 allowance and pay 40 pc tax on the rest. Additional-rate payers get no allowance.

A basic-rate payer with £20,000 in an account paying 5 pc interest would reach their limit after a year, as would a higher-rate payer with £10,000 in the same account. This means if they have any more in their accounts, they will have to start paying tax on the interest they earn.

This will become more important from April 2027, when tax on savings interest will increase to 22 pc for basic-rate payers, 42 pc for higher-rate payers, and 47 pc for additional-rate payers.

For these savers, an Isa is key. You can put up to £20,000 a year into these accounts and all gains are tax-free.

Changes to the rules mean that from April 2027, under-65s will be able to put a maximum of £12,000 a year into a cash Isa, so those with bigger pots should make use of the full allowance while they can.

Morris says the current top Cash Isas include those from Trading 212 paying 4.51 pc, Plum, paying 4.31 pc, Tembo Money, paying 4.3 pc, and Atom Bank, paying 4.25 pc. Those who prefer more traditional banking names could opt for Virgin Money's Cash Isa, paying 4.15 pc, Skipton BS at 4.07 pc or Tesco Bank, which pays 4.06 pc.

Having already amassed a decent nest egg also opens up more options. Springall says: 'Some providers have a minimum deposit level of £10,000, so having this lump sum can open up a few alternatives.'

She points to the MBNA one-year fixed bond, which pays 4.66 pc, with a minimum deposit of £1,000. Skipton Building Society's 18-month fixed-rate cash Isa pays 4.55 pc, with a minimum deposit of £500.

Remember that if you have savings that you do not expect to spend within the next five or ten years, you may be able to invest them rather than leaving them in a savings account. 

You are likely to earn more by investing your money in a portfolio of shares and bonds from all around the world than by earning interest on it in a savings account.

While the amount under-65s can put into a cash Isa each year will fall to £12,000 from next April, they will still be able to invest up to £20,000 in a stocks and shares Isa each year. This means that savers could put the first £12,000 into a cash Isa and the remaining £8,000 into a stocks and shares Isa, for example.

Find out how to get started with This is Money's beginner's guide to investing in the stock market. 

The Super Saver: £50,000-£100,000

Now is the time to think about longer-term aims, from a future house move, a nest egg for the children and even retirement. Savers will probably need multiple accounts to manage their different goals and take advantage of top rates and tax allowances.

Sprawling says: 'Unless savings are designated for a specific short-term goal, you should be splitting your money between a rainy day pot for emergencies, and those funds you are unlikely to need and can be deposited for a fixed term or, if you are comfortable, invested.'

A laddering approach can be a great way to divide your money and lock in higher interest rates for longer. This involves splitting your savings into chunks and spreading them across accounts of different terms: easy-access, a one-year fixed rate bond, and longer-term two, three or five-year bonds.

This gives certainty over how much your money will be earning, while making sure some of your cash is still within easy reach if you need it. According to Spring, a third of people with more than 12 months' worth of outgoings in their savings use a laddering technique.

Sprawling says: 'It always makes sense to hold some money in a competitive easy-access account for flexibility, while introducing fixed-rate cash Isas for money you want to protect from tax and keep working harder over time.'

For easy-access accounts, Morris suggests Cynergy Bank Online Easy Access or Hanley Economic Building Society's Dual Access Saver, which pay 4.27 pc. You can make up to two withdrawals a year from the latter. Top one-year fixed rate accounts along with MBNA's 4.66 pc include Kent Reliance at 4.67 pc with a minimum £1,000 deposit and Close Brothers Savings, paying 4.65 pc with a minimum deposit of £10,000.

For longer-term options, she names Chetwood Bank at 4.7 pc for an 18-month fix. You can also consider RCI Bank's two-year fixed rate bond pays 4.68 pc, Kent Reliance's three-year bond at 4.66 pc, and Market Harborough Building Society's five-year bond paying 4.7 pc.

Byrnes says: 'This is the point where financial planning becomes less about building savings and more about optimising them. With a pot of this size, it's important your money is working efficiently, rather than sitting in low-return cash by default.'

The Supreme Saver: £100,000+

With your money spread across different accounts, you might now start to look at other tax-efficient options.

Premium Bonds are a popular choice. Savers can put up to £50,000 into these accounts, which don't pay a fixed rate of interest but instead enter you into a monthly draw to win prizes ranging from £25 to £1 million – all of which are tax-free.

Investing in the stock market becomes more important at this stage, and is a more effective way to grow your money over the long-term than cash in the bank. Be sure to only invest money you are happy to tie up for at least three to five years.

There are plenty of investing apps to choose from, so find one that fits your needs and be sure to understand its fees.

Apps such as JP Morgan Personal Investing, InvestEngine and Moneyfarm offer ready-made investment options that do all the hard work of choosing where to invest for you. For those who prefer to pick their own investments, platforms such as Interactive Investor, AJ Bell and Hargreaves Lansdown may be a good choice.

Pension contributions are an incredibly tax-efficient way to save for the future, so consider putting any extra savings into a pension if you are happy to lock them away for a while. Employees get a contribution from their workplace as well as tax relief on their contributions, which boosts the amount of money in their pot.

For a basic-rate taxpayer, an £80 contribution is effectively topped up to £100 through tax relief, and for a higher-rate payer a £60 contribution is topped up to this amount.

Check where your pension is invested. Unless you choose otherwise, it will be put into a default fund, which may not be appropriate for your needs.

Byrnes says: 'Even at this level, the principles remain the same: ensure you hold enough accessible cash for flexibility and security but make sure the rest of your money is being put to work in a way that reflects your goals.'

One important consideration at this stage is the Financial Services Compensation Scheme (FSCS). This acts as a safety net, protecting your money if your bank fails. The current protection limit is £120,000 per person, per banking licence. Larger sums held with the same institution are not covered, meaning you could lose your money if something goes wrong.

Crucially, the limit is per banking licence, not per brand – some banks operate under the same licence, so their coverage is shared. For example, First Direct is part of HSBC, so money held across both counts towards the same £120,000 protection limit. Be sure to do your homework on newer banking brands, too – for example, Cahoot is owned by Santander.