About the figures in this article: average rates are from the Bank of England and Moneyfacts, as published on the dates given. They're market averages, not best-buy rates. Rates change often, so check providers' own pages before opening an account. This article doesn't cover the whole market.

Savings rates on new accounts and rates on accounts people already hold can be quite different. Banks and building societies set their own rates, and accounts that are no longer on sale to new customers don't always keep pace with the ones that are. This article explains how big the gap can be, how to check what your account pays, and how switching works.

How rates on existing accounts compare with new ones

Bank of England figures compare the average rate paid on money people already hold with the average rate offered on new accounts:

Sources: Bank of England, Money and Credit (August 2026, published 29 September 2026) and quoted household interest rates (series IUMB6VJ, downloaded 14 October 2026; the Bank may revise recent months). The existing sight deposits figure includes interest-bearing current accounts as well as savings accounts. Differences are our calculation, before tax.

Moneyfacts has also compared easy-access accounts that are still on sale with closed accounts that existing customers are still in. In July 2024, the average rate on live easy-access accounts was 3.13%, compared with 2.82% on closed accounts. At its widest, in October 2023, the gap was 0.66 percentage points (Moneyfacts, 15 July 2024).

What the regulator has done

Under the FCA's Consumer Duty, banks and building societies must show that their savings products offer fair value. Since 31 July 2024, this has applied to closed products as well as those still on sale. In September 2024, the FCA said average interest paid on easy-access accounts had risen from 1.66% in July 2023 to 2.11% in June 2024, and estimated that savers were about £4 billion a year better off as a result. It said it expected firms "to take action in relation to closed book products" (FCA, 18 September 2024).

How many people switch?

Many savers stay where they are. In a June 2026 survey of 1,096 Which? members, 29% said they hadn't switched savings accounts since 2021 (Which?, 23 August 2026). In an Opinium survey for Hargreaves Lansdown in September 2025, 43% of savers said they had no plans to move their money to a better-paying account. 16% said switching was too much hassle, and 9% said they probably should move but "can't be bothered".

How to check your rate

• Find your current rate. It's shown in your banking app, online account or latest statement. Your provider must tell you before it makes a material cut to a variable rate.

• Check whether your account is still on sale. If it isn't, the rate may be lower than on the provider's current accounts.

• Compare with published averages. The Bank of England and Moneyfacts publish average rates for each account type. If your rate is well below the average, other accounts are likely to pay more.

• Check what happens when a fixed term ends. Many fixed-rate accounts move into a lower-paying account at maturity unless you choose another option.

How switching works

Easy-access accounts. Open the new account first, then move your money across by bank transfer. Some accounts limit how many withdrawals you can make, so check the terms of your old account.

Fixed-rate accounts. Most fixed-rate accounts don't allow early withdrawals, or charge a penalty, often a number of days' interest. It's usually simplest to move your money when the fixed term ends.

Notice accounts. You'll need to give notice, for example 30 or 90 days, before you can withdraw. Read more: how notice savings accounts work.

Cash ISAs. To move a cash ISA to another provider, don’t withdraw the money yourself. Ask your new provider for an ISA transfer and fill in its transfer form, so the money keeps its tax-free status. Transfers between cash ISAs should take no more than 15 working days. Check whether your current ISA charges a fee or interest penalty for transferring out.

If you withdraw the money instead of transferring it, it loses its ISA status. With most ISAs, you can’t put it back without using more of your annual allowance. Some ISAs are “flexible”: you can take money out and put it back into the same ISA in the same tax year without it counting towards your allowance. Replacing money in a flexible ISA isn’t the same as moving it to a new provider. To change provider, you still need a transfer. Your provider can tell you whether your ISA is flexible.

Current accounts. If your money is in a current account, the Current Account Switch Service can move the whole account, including Direct Debits and standing orders, within seven working days. Read more: what is the 7-day Current Account Switch Service?

Opening a savings account doesn't usually involve a credit check, but providers set their own eligibility criteria and may carry out identity or fraud checks. Some accounts are only open to people who already have a current account with the same provider.

Protection and tax

Eligible deposits with UK-authorised banks and building societies are protected by the FSCS up to £120,000 per person, per authorised firm. Some brands share one banking licence, which means they share one limit. If you move money to a new account, check whether the new provider shares a licence with one you already use.

Outside an ISA, whether you pay tax on savings interest depends on your income and the allowances available to you:

• Personal Allowance: if you haven’t used all of your £12,570 Personal Allowance on other income, the unused part can cover savings interest.

• Starting rate for savings: up to £5,000 of interest can be tax-free if your other income is below £17,570. Every £1 of other income above your Personal Allowance reduces it by £1.

• Personal Savings Allowance: up to £1,000 of interest is tax-free for basic-rate taxpayers, £500 for higher-rate and £0 for additional-rate.

Interest above your allowances is taxed. See GOV.UK: tax on savings interest.

This article is for general information and isn't financial advice.

Read more:

• How much UK cash earns no interest? What Bank of England data shows

• How do notice savings accounts work?

• Tax on savings interest

• Savings accounts guide

• Average household savings & wealth UK