Figures in this article come from the Bank of England, the ONS and Moneyfacts' published market averages, checked on 5 October 2026. Moneyfacts averages cover the accounts it tracks, which may not include every account on the market. Individual account rates vary and change often.

This article looks at where rates are now compared with their 2023–24 levels, and at what the Bank of England and financial markets have said about the outlook.

How high did savings rates go in 2023 and 2024?

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.

Savings rates rose with the Bank Rate in 2023/24. In September 2023, Moneyfacts reported that the average one-year fixed-rate bond paid 5.34%, the highest since 2008. The Bank of England's average rate on two-year fixed cash ISAs (series IUMZID2) was 5.39% the same month. The Moneyfacts average easy-access rate was still 3.11% in May 2024 (Moneyfacts).

The chart below shows how average fixed, deposit and easy access rates have changed over the past 8 years, in relation to the Bank Rate and inflation:

How did savings rates fall in 2024 and 2025?

CPI inflation peaked at 11.1% in October 2022 and then fell back (ONS). As inflation eased, the Bank of England cut the Bank Rate six times between August 2024 and December 2025, with pauses between cuts, taking it from 5.25% to 3.75%.

Average savings rates fell over the same period. Based on Moneyfacts data, the average easy-access rate went from 3.07% in September 2024 to 2.40% in March 2026, and the average one-year fixed rate from 4.43% to 3.79% (Moneyfacts).

The Bank Rate is the interest rate the Bank of England pays on reserves that banks hold with it. It isn't directly linked to savings rates, but it influences the rates banks pay and charge across the economy. Providers set their own savings rates and don't have to pass on changes.

How have savings rates moved in 2026?

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.

In 2026, average savings rates tracked by Moneyfacts have risen, mostly for fixed-rate accounts:

• Easy access: the average rate was 2.41% in February 2026 and 2.53% in September 2026.

• One-year fixed: the average rate was 3.81% in February 2026 and 4.28% in September 2026 (Moneyfacts).

• Two-year fixed cash ISAs: the Bank of England's average rate (series IUMZID2) was 3.67% in February 2026 and 4.41% in August 2026.

Fixed rates tend to follow market interest rates, which reflect where investors expect the Bank Rate to go, and not just today's Bank Rate. In June 2026 the Bank of England said higher oil and gas prices, following events in the Middle East, were expected to push inflation up later in the year (Bank of England, June 2026). In its September 2026 minutes, the Bank reported that market interest rates were pricing a peak in the Bank Rate of around 4.9% by the end of 2027 (Bank of England, September 2026).

Even after these rises, the averages above are below their 2023–24 levels. For example, the two-year fixed cash ISA average was 4.41% in August 2026, compared with 5.39% in September 2023.

Have savings rates peaked?

Nobody can say for certain. On the measures above, savings rates haven't returned to their 2023–24 levels, and fixed rates have been rising in 2026. What happens next depends largely on inflation and on the Bank of England's decisions.

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.

CPI inflation was 3.1% in the 12 months to August 2026 (ONS). In September 2026 the Bank of England projected that it would be about 3¾% in the last quarter of 2026 and slightly above 4% in early 2027. The Bank's target is 2%.

Market pricing in September 2026 pointed to the Bank Rate peaking at around 4.9% by the end of 2027.

These are projections and market expectations, not forecasts by ClearScore, and they can change quickly. Easy-access rates haven't risen as much as fixed rates: the Moneyfacts average was unchanged at 2.53% between July and September 2026.

Inflation matters to savers because it reduces what savings can buy. With CPI at 3.1%, an account paying the September 2026 average one-year fixed rate of 4.28% would give a real return of about 1.2% a year before tax. An account paying the average easy-access rate of 2.53% would lose about 0.6% a year in real terms.

What to check when comparing savings rates

• Introductory bonuses: some of the highest easy-access rates include a bonus that lasts six to 12 months, after which the rate falls.

• Access and terms: fixed-rate accounts usually restrict or charge for early access. Regular savers limit how much you can pay in each month and may be open only to existing customers.

• Tax: interest from cash ISAs is tax-free. Interest from other accounts is taxable only above your allowances. The Personal Savings Allowance is £1,000 for basic-rate taxpayers, £500 for higher-rate and £0 for additional-rate, and people on lower incomes may also get up to £5,000 through the starting rate for savings.

• Protection: eligible deposits are protected by the FSCS up to £120,000 per person per authorised bank or building society. Brands that share a banking licence share one limit.

For more on what drives savings rates, see Why savings rates are changing. For current market figures, see Choice of savings accounts reaches a record high, according to Moneyfacts. To compare account types, see our savings accounts guide.

ClearScore doesn't give financial advice. This article is for general information, doesn't cover every savings account on the market, and other accounts may be better suited to your circumstances.