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, IUMWTFA and IUMB6RH), downloaded on 10 November 2026, and Moneyfacts averages published on 14 October 2026. Inflation figures are from the Office for National Statistics (ONS). They're market averages, not the rate you'd get. Rates change often, so check providers' own pages. This article doesn't cover every savings account on the market.

In 2026, average rates on new fixed savings accounts rose ahead of the Bank Rate. Will this continue?

According to the Bank of England, the average one-year fixed bond paid 4.46% in October 2026, up from 3.51% in March. The average instant-access rate changed much less: it was 2.08% in October 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.

Inflation now

UK inflation was 3.5% in the 12 months to September 2026, up from 3.1% in August, as measured by the Consumer Prices Index (CPI). Transport costs, particularly motor fuels, made the largest upward contribution to the change. That is well below the 11.1% peak seen in October 2022, but above the Bank of England’s 2% target. In November 2026, the Bank said it expects CPI inflation to reach around 5% by the middle of 2027.

The ONS’s CPIH measure, which includes owner occupiers’ housing costs, was 3.6% in the same period.

How inflation affects savings

If your savings earn less interest than the rate of inflation, the money buys less over time, even though the balance grows. With inflation at 3.5%, £10,000 would buy about £9,662 of goods and services in a year's time (£10,000 ÷ 1.035) if it earned no interest.

In October 2026, the average one-year fixed bond rate (4.46%) was about 1 percentage point above September's inflation rate. The average instant-access rate (2.08%) was about 1.4 points below it. Both comparisons are before tax.

Average rates by account type

Source: Moneyfacts UK Savings Trends Treasury Report, 14 October 2026. Averages across accounts on Moneyfacts' database; individual accounts pay more or less.

The sections below explain how three types of account work: notice accounts, regular savers and interest-paying current accounts. Explore them to learn about options for potentially boosting the interest rate you earn.

Notice savings accounts

With a notice account, you have to tell your provider in advance before you withdraw money. Notice periods commonly range from about 30 to 180 days, depending on the account.

On Moneyfacts' October 2026 averages, notice accounts paid more than easy-access accounts but less than one-year fixed bonds. Some easy-access accounts pay more than the average notice account, often through a bonus for the first 6 to 12 months, so it's worth comparing the rate after any bonus ends. Check, too, whether the provider can change the rate during your notice period.

Regular savings accounts

A regular saver lets you pay in a set amount each month, usually for 12 months. Headline rates are often higher than on easy-access accounts, but there's a monthly limit, and some accounts are only open to the provider's existing customers.

Because you build up the balance gradually, you earn interest on a smaller amount than the headline rate suggests. For example, paying £250 a month for 12 months into an account paying a hypothetical 6% AER would earn about £98 of interest on £3,000 paid in. That's about 3.25% of the total paid in. (Our calculation, assuming monthly payments at the start of each month and simple interest.)

Learn more in our savings accounts guide.

Interest-paying current accounts

Some current accounts pay interest on your balance. They tend to follow one of two patterns:

• a higher rate for an introductory period (often 12 months) on a capped balance, sometimes only for customers who also hold another account or pay a fee

• a tiered rate, with a higher rate up to a set balance and a lower rate above it

Conditions such as a minimum monthly deposit, a monthly fee or new-customer eligibility often apply, so check the full terms as well as the headline rate. Applying for a current account may involve a credit check.

Using more than one type of account

You can hold more than one of these accounts at the same time. Each has its own limits and conditions, so this means more to keep track of.

Tax and protection

Depending on your income, interest on non-ISA savings may be covered by the Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers).

Savings income tax rates are set to rise in two steps of two percentage points each, announced at Budget 2025 and Budget 2026. From 6 April 2027, the rates are due to be 24% (basic), 44% (higher) and 49% (additional), up from 20%, 40% and 45%.

Eligible deposits with UK-authorised banks and building societies are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised firm. Brands that share a banking licence share one limit.

Rates change often. See our savings accounts guide for current rates.

Read more

• Do savings rates beat inflation? Real returns, tax and account types explained

• Savings rates in 2024 and 2026 compared