Erin Yurday
Author
Fixed savings rates are climbing again — even though the base rate hasn't moved. Here's why
19 October 2026
3 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.
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.
Savers locking into fixed-rate bonds and ISAs have seen average rates on offer rising since around February/March 2026. Instant-access rates, by contrast, have stayed roughly flat over the same period.
How does the base rate impact savings rates?
The Bank Rate (often called the base rate) is the interest rate the Bank of England pays on reserves that banks hold with it. It influences 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 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.
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 decide their own rates, so they don't always pass on changes in full, or straight away.
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 | |
30 Sep 26 | 2.06% | 4.35% | 4.53% | 4.56% | 4.53% |
31 Aug 26 | 2.03% | 4.08% | 4.40% | 4.37% | 4.40% |
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 interest rates on new savings accounts, January 2025 to September 2026.
Average quoted rates on instant-access accounts drifted down through 2025, from 2.62% in January to 2.20% in December, and have stayed close to 2.1% through 2026, reaching 2.06% in September.
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 0.8 to 1 percentage point between their 2026 low and September 2026.
Source: Bank of England, Quoted household interest rates (series IUMWTFA, IUMB6RH, IUMB6RI, IUMZID2, IUMB6VJ), monthly data to September 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.
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.
Interest outside an ISA may be taxable if it exceeds your available allowances. These can include your Personal Allowance, the starting rate for savings and your Personal Savings Allowance, depending on your circumstances. Cash ISA interest is tax-free. Read more about tax on savings.
Erin Yurday
Author
19 October 2026
3 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
19 October 2026
3 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.
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.
Savers locking into fixed-rate bonds and ISAs have seen average rates on offer rising since around February/March 2026. Instant-access rates, by contrast, have stayed roughly flat over the same period.
How does the base rate impact savings rates?
The Bank Rate (often called the base rate) is the interest rate the Bank of England pays on reserves that banks hold with it. It influences 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 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.
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 decide their own rates, so they don't always pass on changes in full, or straight away.
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 | |
30 Sep 26 | 2.06% | 4.35% | 4.53% | 4.56% | 4.53% |
31 Aug 26 | 2.03% | 4.08% | 4.40% | 4.37% | 4.40% |
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 interest rates on new savings accounts, January 2025 to September 2026.
Average quoted rates on instant-access accounts drifted down through 2025, from 2.62% in January to 2.20% in December, and have stayed close to 2.1% through 2026, reaching 2.06% in September.
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 0.8 to 1 percentage point between their 2026 low and September 2026.
Source: Bank of England, Quoted household interest rates (series IUMWTFA, IUMB6RH, IUMB6RI, IUMZID2, IUMB6VJ), monthly data to September 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.
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.
Interest outside an ISA may be taxable if it exceeds your available allowances. These can include your Personal Allowance, the starting rate for savings and your Personal Savings Allowance, depending on your circumstances. Cash ISA interest is tax-free. Read more about tax on savings.
Erin Yurday
Author
19 October 2026
3 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.