If you haven’t checked the interest rate on your cash for a while, then there’s a chance your bank is taking you for a ride.

In this article we’re going to explain how savings rates compare right now, and when it's worth switching. Plus, we’ll also explain why some ‘headline’ deals on regular savings accounts may not feel quite as generous as they appear.

What is happening with savings rates?

The Bank of England’s base rate has a massive impact on savings rates. When the base rate is very low, banks can offer very low interest rates on their savings accounts. This is because they can borrow money from the Bank of England at a lower rate, so there isn’t a need for them to offer high interest rates to attract deposits.

Over the past few years, the base rate soared as the Bank of England grappled with high inflation, eventually peaking at 5.25% in August 2023. The Bank then began a gradual cycle of cuts from August 2024, taking the rate down to 3.75% by December 2025 where it has held steady ever since, through the Bank's most recent decision on 30 July 2026.

Despite the base rate holding steady rather than falling further, savers can still find decent deals. Bank of England data shows average easy-access rates sitting around 2.1% (source: Bank of England dataset IUMB6VJ, Instant access deposits, 31 August 2026), though on 11 September 2026, more than a dozen easy access accounts offer rates above 4% (often including a short-term, new-customer boost or offer). This remains a significant improvement over the near-zero rates of the early 2020s.

With inflation having ticked back up to 2.9% in July 2026 (the Consumer Prices Index rose by 2.9% in the 12 months to July 2026, according to the Office for National Statistics) and the Bank of England holding rates rather than cutting, further reductions look less certain than they did a year or two ago.

Why do providers offer different savings rates?

While the Bank of England’s base rate has a massive impact on savings rates, it isn’t the only factor.

Competition also plays a huge part, which is why savings rates can differ a lot between providers. For example, if a new provider wishes to attract a large number of new customers in a short space of time, it may offer a headline-grabbing interest rate in order to be featured in the best-buy tables.

Similarly, if a provider has a need to raise capital, it may decide to increase its interest rates in order to charm savers. Once the desired capital has been raised, some providers will quickly move reduce their savings rates. This happens often in the fixed savings account market.

Another reason many savings providers offer low savings rates is simply because they know many customers won’t check their rate or are simply too lazy to move accounts. With the gap between the best and worst savings rates wider than it's been in years, staying with an underperforming account now carries a real cost.

Recent research from AJ Bell reveals that £306bn of UK savings is currently languishing in accounts earning zero interest at all — more than double the equivalent figure a decade ago. The rise of zero-interest holdings proves that many Britons are essentially giving banks a free loan while their own money loses value in real terms.

How can I check if my bank is giving me a fair deal?

With average easy-access rates sitting around 2.1% and top-of-market accounts closer to 5%, there's a wide gap between what's typical and what's achievable. Easy-access accounts earning at or below the current average of 2.1% are earning well below what's achievable elsewhere in the market.

We researched rates directly from provider websites and by looking at comparison sites like Moneyfactscompare on 11 September 2026. While eligibility, terms and account conditions vary by provider, the highest rates in the market are broadly as follows:

Are you looking for a fixed account? The fixed savings account market is a little different from easy access as the rates will depend on how long you’re willing to lock away cash. Also, you typically can’t move cash from a fixed account, so if you have a poor fixed rate deal, you’ll just have to sit tight until the end of the term unfortunately.

For more on fixed-savings accounts, plus information on how you can further boost the interest rate on your cash, take a look at our best savings accounts guide.

Why regular savings rates may not be as generous as they may seem.

You may have seen banks advertising impressive interest rates on regular savings accounts. For example, some regular savings accounts pay headline rates in the high single digits — sometimes 7% or more. To open one, you typically need to already hold a current account with that specific bank or building society.

While putting money into a regular saver can be a good way to get you into the savings habit, it’s worth knowing that the headline rates on these accounts may be misleading for some. That’s because you can typically only earn the high rate of interest on a limited sum. Plus, many regular savings accounts only last for a year or so.

Rates like this are usually fixed for just one year, and monthly deposits could be capped somewhere between £200 and £300.

For example, saving £300 a month for a year at a 7% fixed rate would leave you with roughly £3,735 in total, including around £135 in interest.

So, in summary, when it comes to regular savings accounts, here's what to look out for:

• Check that you qualify to open an account. Many regular savings accounts require you to be a customer of a particular bank in order to open one.

• Check how long any high interest rate lasts. It's usually the case that regular savings accounts pay a high rate for a limited period, often 12 months.

• Once the high rate ends, the balance typically reverts to a much lower standard rate — so this is a natural point to reassess where the money sits.

• Look out for any minimum deposit requirements. Regular savings accounts will sometimes require you to save a minimum amount each month. Missing a monthly minimum can mean the account closes automatically, so it's worth checking this requirement fits your regular budget.

• Be aware of the maximum you can save each month. Every regular saver will limit the amount you can save each month. Saving up to the monthly limit maximises the benefit of the higher rate.

Regular savings accounts aren't well suited to a lump sum, since the monthly deposit cap limits how much of it can earn the advertised rate. Easy-access, notice, and fixed accounts don't have this restriction.

For more on how these accounts work, take a look at our best savings accounts guide.