About the figures in this article: savings rates are Bank of England monthly averages of quoted rates on new household accounts, including unconditional bonuses (series IUMB6VJ and IUMWTFA), downloaded on 10 November 2026. Inflation is CPI from the Office for National Statistics (ONS). They're market averages, not best-buy rates. This article doesn't cover every savings account on the market.

After more than a decade of historically low rates, the Bank of England raised the Bank Rate 14 times between December 2021 and August 2023, taking it from 0.1% to a peak of 5.25%. That pushed savings rates to their highest levels in many years. The Bank began cutting in August 2024 and reached 3.75% in December 2025. On 5 November 2026 it raised the rate to 4%, its first increase since August 2023, as the Middle East conflict pushed up energy prices and inflation.

*September 2026, the latest figure available. October's figure is due on 18 November 2026. Before tax. Sources: Bank of England (the Bank Rate; series IUMB6VJ and IUMWTFA); ONS. Differences are our calculation.

The average one-year fixed bond rate is almost back to its August 2024 level, even though the Bank Rate was lower for most of 2026. Fixed rates are priced partly on where markets expect the Bank Rate to go, so they started rising in spring 2026, before the Bank Rate did. The average instant-access rate has changed much less, and is now below inflation.

What the rise to 4% could mean

Savings providers set their own rates, so they don't always pass on a change in the Bank Rate in full, or straight away. Rates on fixed accounts you already hold don't change. In its November 2026 report, the Bank said it expects CPI inflation to rise to around 5% by the middle of 2027.

Eligible deposits with UK-authorised banks and building societies are protected by the FSCS up to £120,000 per person, per authorised firm.

Read more: Savings rates in 2024 and 2026 compared ꞏ See our savings accounts guide for current rates.