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UK savings account rates climb as providers compete for deposit cash
Moneyfacts says the number of savings accounts paying more than the Bank of England base rate rose to 1,385 this month, the highest in more than six years.
UK savers are seeing higher deposit rates as bank and fintech competition pushes up returns on easy-access accounts and fixed-rate savings products, a development highlighted by the UK’s financial data provider Moneyfacts, according to the Guardian Business. The article says instant- and easy-access accounts can pay up to 5% interest, while the average one-year fixed-rate bond is at 4.22%, the highest since November 2024. For regular savings, it adds that some accounts are now offering rates up to 8%, reflecting increased choice for people trying to move cash out of non-yielding accounts.
Moneyfacts data cited by the Guardian Business shows that the number of “live” savings accounts paying more than the Bank of England base rate, currently 3.75%, rose to 1,385 this month. The outlet notes this figure is based on the interest paid on a balance of £5,000, and it also says more than half of all live accounts meet that threshold.
The report also points to easy-access pricing, with the average non-ISA easy-access rate at 2.53%, its highest for almost a year. It highlights Revolut’s instant-access savings offer for new UK customers, offering 5% until 4 December this year on balances up to £25,000, after which the rate reverts to the plan’s determined level.