Erin Yurday
Author
Fixed savings rates are climbing again — even though the base rate hasn't moved. Here's why
08 September 2026
4 min read
Contents
How does the base rate impact savings rates?How savings rates have moved by account type Will savings rates rise?The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement.
After peaking at 5.25% in August 2023, the Bank of England cut the base rate six times between August 2024 and December 2025, bringing it down to 3.75% — where it has held steady ever since. But savers locking into fixed-rate bonds and ISAs have seen something unexpected: average rates on offer have been rising again since around February/March 2026, even with no change to the base rate itself. Instant-access rates, by contrast, have stayed roughly flat over the same period.
For those with some savings, let's explore the current market-leading easy-access and fixed accounts.
How does the base rate impact savings rates?
The base rate is the rate at which the Bank of England lends to commercial banks, and it has a significant influence on the interest rates those banks offer to savers and borrowers.
After more than a decade of historically low rates, the Bank of England raised the base rate fourteen times between December 2021 and August 2023, taking it from 0.1% to a peak of 5.25%. This drove savings rates to their highest levels in many years. Since August 2024, the Bank has cut rates several times, bringing the base rate to its current level of 3.75% (still effective in September 2026).
When the base rate rises, borrowing typically becomes more expensive, affecting mortgage rates, loans, and other forms of credit. Savings rates generally move in the same direction, though the relationship is not always immediate or proportional. Banks and building societies have historically been quicker to pass on base rate rises to borrowers than to savers, and quicker to pass on cuts to savers than to borrowers.
Fixed-term savings rates don't only track the base rate itself, they also move with what markets expect the base rate to do in future. Since spring 2026, market pricing has shifted to reflect a greater chance of a base rate rise later in the year, driven largely by higher energy prices linked to the conflict in the Middle East. That shift has fed through into higher fixed-rate savings pricing, even though the Bank has not yet changed the base rate.
As a result, the best savings rates available on the market do not always move in exact lockstep with base rate changes.
How savings rates have moved by account type
Instant access deposits | 1 year fixed rate bond | 2 yr fixed rate bond | 3 year fixed rate bond | 2 year fixed cash ISA | |
IUMB6VJ | IUMWTFA | IUMB6RH | IUMB6RI | IUMZID2 | |
31 Aug 26 | 2.07% | 4.04% | 4.24% | 4.37% | 4.41% |
31 Jul 26 | 2.09% | 3.98% | 4.05% | 4.20% | 4.34% |
30 Jun 26 | 2.14% | 4.12% | 4.08% | 4.15% | 4.37% |
31 May 26 | 2.13% | 4.00% | 4.11% | 4.11% | 4.40% |
30 Apr 26 | 2.12% | 3.78% | 3.83% | 4.02% | 4.28% |
31 Mar 26 | 2.13% | 3.51% | 3.50% | 3.76% | 3.80% |
28 Feb 26 | 2.12% | 3.61% | 3.55% | 3.74% | 3.67% |
31 Jan 26 | 2.15% | 3.67% | 3.65% | 3.76% | 3.70% |
31 Dec 25 | 2.20% | 3.71% | 3.72% | 3.80% | 3.72% |
30 Nov 25 | 2.20% | 3.77% | 3.75% | 3.81% | 3.82% |
31 Oct 25 | 2.23% | 3.79% | 3.77% | 3.83% | 3.82% |
30 Sep 25 | 2.26% | 3.79% | 3.76% | 3.83% | 3.79% |
31 Aug 25 | 2.27% | 3.80% | 3.76% | 3.83% | 3.82% |
31 Jul 25 | 2.34% | 3.86% | 3.78% | 3.82% | 3.82% |
30 Jun 25 | 2.37% | 3.95% | 3.82% | 3.84% | 3.80% |
31 May 25 | 2.41% | 3.98% | 3.81% | 3.75% | 3.82% |
30 Apr 25 | 2.46% | 4.06% | 3.93% | 3.88% | 4.02% |
31 Mar 25 | 2.45% | 4.05% | 3.97% | 3.90% | 3.97% |
28 Feb 25 | 2.57% | 4.07% | 3.94% | 3.92% | 3.80% |
31 Jan 25 | 2.62% | 4.04% | 3.85% | 3.91% | 3.73% |
Average quoted rates on instant-access accounts have stayed close to flat over the past 18 months, sitting around 2.1% for most of 2025 and easing slightly to 2.07% by August 2026.
Fixed-rate products tell a different story: after falling steadily from their autumn 2023 peaks (when 1-year and 2-year fixed bonds briefly topped 5%) to a low point in February–March 2026, average rates on 1-year, 2-year and 3-year fixed bonds, and 2-year fixed cash ISAs, have all turned upward again, rising by roughly 0.5 to 0.75 percentage points between their 2026 low and August 2026.
Source: Bank of England, Quoted household interest rates (series IUMWTFA, IUMB6RH, IUMB6RI, IUMZID2, IUMB6VJ), monthly data to August 2026. These are market-wide averages, not best-buy rates — individual providers may offer more or less than the average shown.
Will savings rates rise?
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 July 2026 meeting, by a vote of 6-3. The policymakers balanced lingering global energy shocks against a more stable domestic outlook.
CPI inflation stood at 2.9% in July 2026, above the Bank's 2% target.
For more savings tips, and an updated list of the top accounts, take a look at our best savings accounts guide. And with rising rates, be aware of going over the Personal Savings Allowance, which you can read about here.
Erin Yurday
Author
08 September 2026
4 min read
Contents
How does the base rate impact savings rates?How savings rates have moved by account type Will savings rates rise?The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement.
Meet the author
Author
Erin Yurday
Erin was the founder of NimbleFins, a data driven personal finance site. A former derivatives trader and finance expert at the Stanford Graduate School. Erin turns research into plain answers so you can understand your credit.
Fixed savings rates are climbing again — even though the base rate hasn't moved. Here's why
Erin Yurday
Author
08 September 2026
4 min read
Contents
How does the base rate impact savings rates?How savings rates have moved by account type Will savings rates rise?The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement.
After peaking at 5.25% in August 2023, the Bank of England cut the base rate six times between August 2024 and December 2025, bringing it down to 3.75% — where it has held steady ever since. But savers locking into fixed-rate bonds and ISAs have seen something unexpected: average rates on offer have been rising again since around February/March 2026, even with no change to the base rate itself. Instant-access rates, by contrast, have stayed roughly flat over the same period.
For those with some savings, let's explore the current market-leading easy-access and fixed accounts.
How does the base rate impact savings rates?
The base rate is the rate at which the Bank of England lends to commercial banks, and it has a significant influence on the interest rates those banks offer to savers and borrowers.
After more than a decade of historically low rates, the Bank of England raised the base rate fourteen times between December 2021 and August 2023, taking it from 0.1% to a peak of 5.25%. This drove savings rates to their highest levels in many years. Since August 2024, the Bank has cut rates several times, bringing the base rate to its current level of 3.75% (still effective in September 2026).
When the base rate rises, borrowing typically becomes more expensive, affecting mortgage rates, loans, and other forms of credit. Savings rates generally move in the same direction, though the relationship is not always immediate or proportional. Banks and building societies have historically been quicker to pass on base rate rises to borrowers than to savers, and quicker to pass on cuts to savers than to borrowers.
Fixed-term savings rates don't only track the base rate itself, they also move with what markets expect the base rate to do in future. Since spring 2026, market pricing has shifted to reflect a greater chance of a base rate rise later in the year, driven largely by higher energy prices linked to the conflict in the Middle East. That shift has fed through into higher fixed-rate savings pricing, even though the Bank has not yet changed the base rate.
As a result, the best savings rates available on the market do not always move in exact lockstep with base rate changes.
How savings rates have moved by account type
Instant access deposits | 1 year fixed rate bond | 2 yr fixed rate bond | 3 year fixed rate bond | 2 year fixed cash ISA | |
IUMB6VJ | IUMWTFA | IUMB6RH | IUMB6RI | IUMZID2 | |
31 Aug 26 | 2.07% | 4.04% | 4.24% | 4.37% | 4.41% |
31 Jul 26 | 2.09% | 3.98% | 4.05% | 4.20% | 4.34% |
30 Jun 26 | 2.14% | 4.12% | 4.08% | 4.15% | 4.37% |
31 May 26 | 2.13% | 4.00% | 4.11% | 4.11% | 4.40% |
30 Apr 26 | 2.12% | 3.78% | 3.83% | 4.02% | 4.28% |
31 Mar 26 | 2.13% | 3.51% | 3.50% | 3.76% | 3.80% |
28 Feb 26 | 2.12% | 3.61% | 3.55% | 3.74% | 3.67% |
31 Jan 26 | 2.15% | 3.67% | 3.65% | 3.76% | 3.70% |
31 Dec 25 | 2.20% | 3.71% | 3.72% | 3.80% | 3.72% |
30 Nov 25 | 2.20% | 3.77% | 3.75% | 3.81% | 3.82% |
31 Oct 25 | 2.23% | 3.79% | 3.77% | 3.83% | 3.82% |
30 Sep 25 | 2.26% | 3.79% | 3.76% | 3.83% | 3.79% |
31 Aug 25 | 2.27% | 3.80% | 3.76% | 3.83% | 3.82% |
31 Jul 25 | 2.34% | 3.86% | 3.78% | 3.82% | 3.82% |
30 Jun 25 | 2.37% | 3.95% | 3.82% | 3.84% | 3.80% |
31 May 25 | 2.41% | 3.98% | 3.81% | 3.75% | 3.82% |
30 Apr 25 | 2.46% | 4.06% | 3.93% | 3.88% | 4.02% |
31 Mar 25 | 2.45% | 4.05% | 3.97% | 3.90% | 3.97% |
28 Feb 25 | 2.57% | 4.07% | 3.94% | 3.92% | 3.80% |
31 Jan 25 | 2.62% | 4.04% | 3.85% | 3.91% | 3.73% |
Average quoted rates on instant-access accounts have stayed close to flat over the past 18 months, sitting around 2.1% for most of 2025 and easing slightly to 2.07% by August 2026.
Fixed-rate products tell a different story: after falling steadily from their autumn 2023 peaks (when 1-year and 2-year fixed bonds briefly topped 5%) to a low point in February–March 2026, average rates on 1-year, 2-year and 3-year fixed bonds, and 2-year fixed cash ISAs, have all turned upward again, rising by roughly 0.5 to 0.75 percentage points between their 2026 low and August 2026.
Source: Bank of England, Quoted household interest rates (series IUMWTFA, IUMB6RH, IUMB6RI, IUMZID2, IUMB6VJ), monthly data to August 2026. These are market-wide averages, not best-buy rates — individual providers may offer more or less than the average shown.
Will savings rates rise?
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 July 2026 meeting, by a vote of 6-3. The policymakers balanced lingering global energy shocks against a more stable domestic outlook.
CPI inflation stood at 2.9% in July 2026, above the Bank's 2% target.
For more savings tips, and an updated list of the top accounts, take a look at our best savings accounts guide. And with rising rates, be aware of going over the Personal Savings Allowance, which you can read about here.
Erin Yurday
Author
08 September 2026
4 min read
Contents
How does the base rate impact savings rates?How savings rates have moved by account type Will savings rates rise?The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement.
Meet the author
Author
Erin Yurday
Erin was the founder of NimbleFins, a data driven personal finance site. A former derivatives trader and finance expert at the Stanford Graduate School. Erin turns research into plain answers so you can understand your credit.