If you haven't checked the interest rate on your savings for a while, it may be lower than rates available elsewhere. This article explains how savings rates are set, how typical rates compare with the highest advertised rates, and what to check on regular savings accounts.

Market-wide figures in this article come from the Bank of England's database and from Moneyfactscompare, captured on the dates shown. Comparison-site figures reflect accounts listed on that site and may not cover the whole market. Rates change frequently, so check current rates before opening or moving an account.

What is happening with savings rates?

The Bank of England's Bank Rate is one of the main influences on savings rates. The Bank Rate is the interest rate the Bank pays to banks and building societies on money they hold with it. When it changes, banks and building societies usually adjust the rates they charge on loans and pay on savings, although not always by the same amount or at the same time.

At its latest decision on 5 November 2026, the Bank of England raised the Bank Rate from 3.75% to 4%. The next decision is due on 17 December 2026. The Bank Rate isn’t the rate you’ll get on products like a credit card, mortgage or savings account, but it influences them.

Bank of England figures put the average quoted rate on instant access savings for households at 2.07% in August 2026 (Bank of England series IUMB6VJ, which covers a sample of UK banks and building societies and includes unconditional bonuses). Moneyfacts, which averages across the accounts on its own database, put the average easy access rate at 2.53% (published 10 September 2026). The two figures differ because they measure different things.

For comparison, the Bank Rate was 0.1% between March 2020 and December 2021, and savings rates were correspondingly low.

Consumer Prices Index (CPI) inflation was 3.1% in the 12 months to August 2026, according to the Office for National Statistics. When a savings rate is below the inflation rate, the spending power of the money in that account falls over time.

The chart below illustrates how savings rates, the base rate and CPI have moved over the past few years:

Why do providers offer different savings rates?

The Bank Rate isn't the only factor. Competition between providers also affects rates, which is why they can differ between providers. For example, a provider that wants to attract a large number of new customers in a short time may offer a higher rate to appear near the top of comparison tables.

Similarly, a provider that needs to raise funds may raise its rates for a time, then lower them once it has raised what it needs.

Some customers don't review or move their savings, so providers don't all need to match the highest rates on every account.

Investment platform AJ Bell reported in September 2026 that £306 billion was held in UK accounts paying no interest at all, up £6.9 billion in a year, based on Bank of England data. Much of this is likely to be money held in current accounts, many of which pay no interest. Money in an account paying no interest loses spending power while inflation is above zero.

How can I compare the rate I'm getting?

You can compare the rate on your account with average rates and with the highest rates currently advertised. Based on the Bank of England and Moneyfacts averages above (around 2.1% to 2.5% for easy access in August–September 2026) and the highest rates listed on Moneyfactscompare on 24 September 2026, the gap between typical and top-of-table easy access rates was more than two percentage points.

The highest rates listed on Moneyfactscompare on 24 September 2026 were:

These figures reflect accounts seen on Moneyfactscompare and may not capture the whole market. Eligibility, terms and conditions vary by provider.

Fixed-rate accounts work differently from easy access accounts: the rate depends on how long you're willing to lock your money away. Most fixed-rate accounts don't allow withdrawals before the end of the term, and those that do may charge a penalty, often a loss of interest. Check the terms before you open one.

For more on fixed-rate and other savings accounts, see our best savings accounts guide.

How regular savings accounts work

Some regular savings accounts advertise rates in the high single digits. To open one, you may need to hold a current account with the same bank or building society.

The headline rate usually applies only to the amount you pay in each month, up to a monthly cap, and often for a limited period such as 12 months. Because your balance builds up month by month, the interest you earn over the year is roughly half what the same rate would earn on the full year-end balance invested from day one.

For example, saving £300 at the start of each month for a year at a fixed 7% would give you about £3,735, including around £135 in interest. If you paid in at the end of each month, the interest would be around £115. Interest above your Personal Savings Allowance may be taxable.

When looking at a regular savings account, it's worth checking:

• Eligibility. Many regular savings accounts require you to be a customer of the provider, for example by holding its current account.

• How long the rate lasts. The higher rate often applies for a limited period, commonly 12 months, and may be variable rather than fixed.

• What happens at the end. When the term or bonus ends, the balance typically moves to a lower rate.

• Minimum and maximum deposits. Regular savers typically set a monthly maximum and sometimes a minimum. Some accounts have rules about missed payments or withdrawals, which can affect the rate or close the account.

Regular savings accounts aren't designed for a lump sum, because the monthly cap limits how much can earn the advertised rate. Easy access, notice and fixed-rate accounts don't have this restriction.

For more on how these accounts work, see our guide to regular savings accounts.

This article doesn't cover the whole savings market, and other accounts not mentioned here may suit some savers better. ClearScore doesn't give financial advice.