Savers looking to get the best rates on their money have been warned to move swiftly to ensure the accounts with the highest return on interest rates leave the market.
Every month on Independent Money, we lay out the best savings accounts of different types: easy access, fixed term and cash ISAs – but some have now been withdrawn by banks and building societies, with more to follow.
The Bank of England (BoE) lowering interest rates in December meant plenty of lenders would follow suit within the next month or two, as their savings account offers move in tandem with the BoE’s base rate – which is referred to as the variable rate in your savings account.
Revolut’s 4.5 per cent limited-time offer, for example, was only available to be opened before 22 January, and is no longer available. Meanwhile, Nationwide is set to lower the rate of more than 30 savings accounts in the coming days - and others will follow suit if they haven’t already.
Alice Haine, personal finance analyst at Bestinvest, urged people to find the best place for their cash now and move fast before further cuts are made. “Savings rates have already fallen back notably following six BoE rate cuts since August 2024 – making it harder for savers to generate meaningful real returns,” she said.
“Those hoping to preserve returns on cash held in bank and building society savings would be wise to seek out the most competitive deals sooner rather than later. Further rate cuts expected this year will apply additional downwards pressure on savings rates - however, the UK’s rising personal tax burden is proving even more corrosive.”
Right now, Chase’s 4.5 per cent offer remains a standout for easy access savings, while for cash ISAs, Trading 212 offers 4.33 per cent, including a bonus for signing up through this link.
That said, both of those accounts are variable rates too, and if interest rates drop further, the headline rate for your account is also likely to come down – so if you were looking to lock in top rates for longer, fixed-term saver accounts would be the way to go.
The trade-off for those is that you get the higher rate guaranteed, but you usually can’t access your cash until it matures. But even those top rates are coming down, making it more important for people decide fast if they want to take the best deals on the market.
“For savers, falling inflation puts the spotlight firmly on getting the best possible return. As expectations grow that interest rates will start to come down, savings rates are likely to follow,” agreed Harriet Guevara, chief savings officer at Nottingham Building Society.
“That makes now an important moment to shop around, while competition between providers is still delivering strong returns. Fixed-rate accounts in particular can offer peace of mind by locking in today’s rates before they fall.
“The key is not to settle for the first rate you see. Look carefully at terms, timeframes and flexibility, and think about whether certainty or access matters most to you. There are still competitive deals available, but being proactive can make a real difference to how hard your savings work over the year ahead.”
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Chetwood Bank still offers 4.21 per cent on a one-year fixed bond, while Oaknorth Bank, through Meteor, offers 4.35 per cent for a year or slightly lower for nine months. You can also get 4.4 per cent on an unusual three-month term through Santander, on the Prosper platform if you are a new client.
The best fixed deals on the market tend to get removed once enough people have opened them - as Marcus has done this week with a 4.55 per cent deal.
“Seeing your savings rate fall can feel like a real blow, especially when you’re trying to build up a financial cushion or put money aside for future plans. Even relatively modest reductions in interest can make a noticeable difference to what you earn on your deposits, and with so many accounts being affected, it’s likely that a lot of everyday savers will feel the impact.” Nicola Morgan, consumer finance expert at Confused.com.
“Staying on top of how your savings are performing and reviewing your accounts regularly can help you keep your financial goals on track, even when headline rates are falling.”
If you’re opening a savings account or moving your money, you should always check the terms beyond the rate to make sure it suits your likely needs. All rates are usually shown as an annual rate (AER) for easy comparison, but there may be other restrictions, such as the number of withdrawals, a bonus which expires after a set time or others.
Analysis for Spring by Moneycomms has shown this month that 34 out of 50 easy access savings accounts offered by the UK’s leading providers have at least one form of restriction attached, while the average rate offered on what they term true easy access accounts by the biggest banks was just 1.12 per cent.
Four out of nine of the big UK banks offer even lower, a dismal 0.90 per cent - meaning it’s vital to move your money elsewhere if that’s what it’s earning while inflation is still running well above 3 per cent.
Interest rates are predicted to come down twice more across 2026, but the BoE are very unlikely to vote for a cut at their next meeting in February.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
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