Savings Landscape: 2024 vs. 2026 Comparison

While the interest rate peak of 2024 is behind us, the 2026 savings market offers a more stable environment for long-term planning. Below is a snapshot of how the key economic indicators and savings opportunities have shifted over the past two years.

As of July 2026, the Bank of England has transitioned into a cycle of gradual rate cuts, with the base rate now sitting at 3.75%. While the 5% easy-access rates of 2024 have largely disappeared, top fixed-rate accounts still offer returns around 4.6%. Crucially, with inflation (CPI) currently at 2.8% in May 2026, savers are still achieving a positive 'real' return, though the margin has narrowed compared to last year.

UK inflation and interest rates

According to the latest ONS data, the Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 2.8% in the 12 months to May 2026. While this is down from the 3.6% recorded in December 2025, it remains above the Bank of England's 2% target. With the base rate currently at 3.75%, the window to lock in fixed rates that significantly outperform inflation could be narrowing.

UK inflation - what happened?

Inflation peaked in October 2022 when it hit 11.1%.

That was the highest rate for 40 years and was driven by the soaring cost of energy and food.

Like many similar countries, the Bank of England has an inflation target of 2% which ensures the economy is growing but prices are rising gradually and predictably.

Repeated months with lower inflation puts the UK at the risk of deflation which could signal a recession and cause higher unemployment.

Mark Hicks, a savings expert at investment firm Hargreaves Lansdown, told the Guardian: “This is a window of opportunity for savers, so now is the time to clamber in and grab a decent rate before it closes.”

The urgency comes down to the fact that when interest rates are higher than inflation, savers can make more on their money.

When interest rates are lower than inflation, which they have been since 2008, savings are actually losing value in real terms. That's because they're not growing as much as inflation is, so money is worth less even if it's in a savings account. Essentially, you can buy less with it.

Best savings accounts

NimbleFins' Best Savings Accounts Guide shows that many providers are offering deals in the 4.1% to 4.6% range for easy access up to 1-year fixed terms.

Alternatively, you can lock your money away for five years and find deals in the 4.6% - 4.8% range.

Two year fixed rate

With one-year fixed rates, savers will need to try and find another competitive rate in just 12 months, so some people look to tie their money up for longer in order to protect against further potential base rate cuts.

Some of the highest 2-year rates available in July 2026 are in the 4.65% - 4.85% range.

When will interest rates change?

The Bank of England's Monetary Policy Committee (MPC) sets the base rate eight times a year, based on its assessment of inflation, GDP, and other economic indicators.

The base rate currently stands at 3.75%, following the MPC's decision to hold at its June 2026 meeting, by a vote of 7–2. The Bank cited the risk that higher energy prices, linked to Middle East tensions, could push inflation higher in the second half of 2026 as a reason for holding rather than cutting further.

CPI inflation stood at 2.8% in May 2026, above the Bank's 2% target. The next ONS inflation figures (for June 2026) are due on 16 July 2026. The next MPC interest rate decision is scheduled for 30 July 2026.

Read more:

• NimbleFins Best Savings Accounts Guide

• NimbleFins Best Bank Accounts Guide

• Average Household Savings & Wealth UK

• Interest rate rise warning as up to 1.7m now set to pay tax on their savings – how to avoid

• Martin Lewis reveals hack to avoid paying tax on savings interest as HMRC to rake in £10.4bn