Savers urged to escape the apathy trap and switch
Savers are urged to shake apathy and switch accounts even if the Bank of England Base Rate (BBR) is held, according to Moneyfactscompare.co.uk analysis.
Savings market analysis
- Half of UK savings accounts can beat 3.75%, the Bank of England Base Rate (BBR). Savers might enjoy inflation-beating returns for now, but real returns could be squandered should inflationary pressures worsen in the months ahead. Interest rates may not rise in the short-term due to stagflation fears.
- Savers with closed accounts must act now to review their rates, even if BBR were to rise in the coming months, it takes longer for these customers to feel the benefits of interest rate rises*. The Bank of England Base Rate (BBR) last rose by 0.25% back on 3 August 2023. It took two months for on-sale savings deals to catch up (easy access and easy access ISAs), but it took three months on closed accounts for easy access customers to see an improvement, and four months for those with a closed easy access ISA.
- Switching accounts is essential to earn better returns, with the average closed rates sitting below on-sale accounts, both for easy access and ISA equivalents. As of the start of April 2026, the average easy access rate was 2.47%, versus 2.39% on closed, and the ISA equivalent was 2.75% on sale versus 2.49% closed (AER).
- The Moneyfacts Average Savings Rate rose month-on-month, the biggest rise since September 2023. However, over the past 12 months, the Consumer Price Index (CPI) has averaged at 3.45% (between April 2025 and March 2026), but the Moneyfacts Average Savings Rate was 3.46% over the same period.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Savers should not hesitate to chase down a better deal, they must escape the apathy trap regardless of any moves to the Bank of England Base Rate (BBR). It is evident that savers will earn more by taking advantage of higher rates with on sale accounts compared to a closed account, and even if BBR were to rise, it takes longer for closed accounts to see the full benefits*. Apathy is dangerous when it comes to maximising interest returns, so savers need to feel inspired to shop around to take advantage of top rates. The best deals are typically offered by challenger banks and mutuals, and they work incredibly hard to entice new business. Building societies are also consistent and offering a fair value, in line with their principles to support their members.
“Savers who have their nest egg in a closed account could be missing out more than they realise, and they could see the real value of their cash diminish should inflation spike. However, they could hold out for longer with real returns by proactively switching to on sale accounts, offered by providers who breathe life into the savings market. A closed easy access account will be earning a pitiful 2.39%, which results in a loss of £322 a year if savers were instead to invest £20,000 into an account earning 4.00%. This could be even worse if the cash has been languishing in an old account paying a paltry rate, so it’s wise to review any accounts at least once every six months or so.
“As it stands, around half of UK savings accounts on the market can beat 3.75%, the current BBR, so savers might feel positive, but the months ahead are looking bleak and any interest earned moving forward could be squandered due to the cost of living. Inflationary pressures can indeed lead to rises to BBR, like in the past where 0.25% was passed onto BBR back in August 2023, but the current fear of stagflation ahead makes a rise less likely. Any saver who wants a guaranteed return on their hard-earned cash could grab a fixed rate bond or ISA, but those who want more flexibility would be wise to look beyond the high street and move their old pots to more lucrative accounts.
“It’s now been just over three weeks since the start of the 2026/27 tax-year, and it’s the last one before the £20,000 yearly ISA allowance changes. Indeed, from 6 April 2027, savers will see their cash ISA limit reduced to £12,000, but those aged 65 and over will continue to be able to save up to £20,000 in a cash ISA each year. The intention of the cut is to drive consumers to invest more, but anyone concerned should seek advice in the first instance to see how this will impact them. Fiscal drag is causing millions of savers to have their Personal Savings Allowance (PSA) halved, down from £1,000 in earned interest to just £500, which is why ISAs remain an essential part of any saver’s portfolio to shield returns from tax.”
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Savings market analysis
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|
Average savings rates
|
Apr-21
|
Apr-24
|
Apr-25
|
Mar-26
|
Apr-26
|
27-Apr-26
|
|
Easy access
|
0.16%
|
3.11%
|
2.77%
|
2.42%
|
2.46%
|
2.47%
|
|
Notice account
|
0.37%
|
4.27%
|
3.81%
|
3.31%
|
3.30%
|
3.32%
|
|
One-year fixed bond
|
0.43%
|
4.59%
|
4.19%
|
3.79%
|
3.90%
|
4.04%
|
|
Five-year fixed bond
|
0.88%
|
3.92%
|
4.02%
|
3.89%
|
4.02%
|
4.11%
|
|
Easy access ISA
|
0.22%
|
3.38%
|
3.04%
|
2.62%
|
2.74%
|
2.75%
|
|
Notice ISA
|
0.34%
|
4.16%
|
3.72%
|
3.27%
|
3.31%
|
3.37%
|
|
One-year fixed ISA
|
0.36%
|
4.52%
|
4.13%
|
3.76%
|
4.01%
|
4.14%
|
|
Five-year fixed ISA
|
0.82%
|
3.80%
|
3.97%
|
3.87%
|
4.04%
|
4.15%
|
|
Averages based on £10,000 gross rate. Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk
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| |
|
Moneyfacts Average Savings Rate
|
| |
Apr-21
|
Apr-24
|
Apr-25
|
Mar-26
|
Apr-26
|
27-Apr-26
|
|
Moneyfacts Average
Savings Rate
|
0.39%
|
3.91%
|
3.65%
|
3.32%
|
3.40%
|
3.47%
|
|
Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs.
|
|
Source: Moneyfacts Average Savings Rate.
|
*Moneyfacts on-sale versus closed account data, back when a 0.25% BBR rise last occurred:
On-sale products - It took two months for average rates to catch up with the 0.25% BBR rise on 3 August 2023. Between the start of August and the start of October 2023 – The average easy access rate rose from 2.83% to 3.18%, and the ISA equivalent rose from 2.87% to 3.26% (AER).
Closed products - It took three months for the average easy access rate, and four months for the ISA equivalent, to catch up with the 0.25% BBR rise on 3 August 2023. Between the start of August and the start of October 2023 – The average easy access rate rose from 2.29% to 2.52%, and the ISA equivalent rose from 2.40% to 2.60% (AER).
Savers urged to escape the apathy trap and switch
Savers are urged to shake apathy and switch accounts even if the Bank of England Base Rate (BBR) is held, according to Moneyfactscompare.co.uk analysis.
Savings market analysis
- Half of UK savings accounts can beat 3.75%, the Bank of England Base Rate (BBR). Savers might enjoy inflation-beating returns for now, but real returns could be squandered should inflationary pressures worsen in the months ahead. Interest rates may not rise in the short-term due to stagflation fears.
- Savers with closed accounts must act now to review their rates, even if BBR were to rise in the coming months, it takes longer for these customers to feel the benefits of interest rate rises*. The Bank of England Base Rate (BBR) last rose by 0.25% back on 3 August 2023. It took two months for on-sale savings deals to catch up (easy access and easy access ISAs), but it took three months on closed accounts for easy access customers to see an improvement, and four months for those with a closed easy access ISA.
- Switching accounts is essential to earn better returns, with the average closed rates sitting below on-sale accounts, both for easy access and ISA equivalents. As of the start of April 2026, the average easy access rate was 2.47%, versus 2.39% on closed, and the ISA equivalent was 2.75% on sale versus 2.49% closed (AER).
- The Moneyfacts Average Savings Rate rose month-on-month, the biggest rise since September 2023. However, over the past 12 months, the Consumer Price Index (CPI) has averaged at 3.45% (between April 2025 and March 2026), but the Moneyfacts Average Savings Rate was 3.46% over the same period.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Savers should not hesitate to chase down a better deal, they must escape the apathy trap regardless of any moves to the Bank of England Base Rate (BBR). It is evident that savers will earn more by taking advantage of higher rates with on sale accounts compared to a closed account, and even if BBR were to rise, it takes longer for closed accounts to see the full benefits*. Apathy is dangerous when it comes to maximising interest returns, so savers need to feel inspired to shop around to take advantage of top rates. The best deals are typically offered by challenger banks and mutuals, and they work incredibly hard to entice new business. Building societies are also consistent and offering a fair value, in line with their principles to support their members.
“Savers who have their nest egg in a closed account could be missing out more than they realise, and they could see the real value of their cash diminish should inflation spike. However, they could hold out for longer with real returns by proactively switching to on sale accounts, offered by providers who breathe life into the savings market. A closed easy access account will be earning a pitiful 2.39%, which results in a loss of £322 a year if savers were instead to invest £20,000 into an account earning 4.00%. This could be even worse if the cash has been languishing in an old account paying a paltry rate, so it’s wise to review any accounts at least once every six months or so.
“As it stands, around half of UK savings accounts on the market can beat 3.75%, the current BBR, so savers might feel positive, but the months ahead are looking bleak and any interest earned moving forward could be squandered due to the cost of living. Inflationary pressures can indeed lead to rises to BBR, like in the past where 0.25% was passed onto BBR back in August 2023, but the current fear of stagflation ahead makes a rise less likely. Any saver who wants a guaranteed return on their hard-earned cash could grab a fixed rate bond or ISA, but those who want more flexibility would be wise to look beyond the high street and move their old pots to more lucrative accounts.
“It’s now been just over three weeks since the start of the 2026/27 tax-year, and it’s the last one before the £20,000 yearly ISA allowance changes. Indeed, from 6 April 2027, savers will see their cash ISA limit reduced to £12,000, but those aged 65 and over will continue to be able to save up to £20,000 in a cash ISA each year. The intention of the cut is to drive consumers to invest more, but anyone concerned should seek advice in the first instance to see how this will impact them. Fiscal drag is causing millions of savers to have their Personal Savings Allowance (PSA) halved, down from £1,000 in earned interest to just £500, which is why ISAs remain an essential part of any saver’s portfolio to shield returns from tax.”
|
Savings market analysis
|
|
Average savings rates
|
Apr-21
|
Apr-24
|
Apr-25
|
Mar-26
|
Apr-26
|
27-Apr-26
|
|
Easy access
|
0.16%
|
3.11%
|
2.77%
|
2.42%
|
2.46%
|
2.47%
|
|
Notice account
|
0.37%
|
4.27%
|
3.81%
|
3.31%
|
3.30%
|
3.32%
|
|
One-year fixed bond
|
0.43%
|
4.59%
|
4.19%
|
3.79%
|
3.90%
|
4.04%
|
|
Five-year fixed bond
|
0.88%
|
3.92%
|
4.02%
|
3.89%
|
4.02%
|
4.11%
|
|
Easy access ISA
|
0.22%
|
3.38%
|
3.04%
|
2.62%
|
2.74%
|
2.75%
|
|
Notice ISA
|
0.34%
|
4.16%
|
3.72%
|
3.27%
|
3.31%
|
3.37%
|
|
One-year fixed ISA
|
0.36%
|
4.52%
|
4.13%
|
3.76%
|
4.01%
|
4.14%
|
|
Five-year fixed ISA
|
0.82%
|
3.80%
|
3.97%
|
3.87%
|
4.04%
|
4.15%
|
|
Averages based on £10,000 gross rate. Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk
|
| |
|
Moneyfacts Average Savings Rate
|
| |
Apr-21
|
Apr-24
|
Apr-25
|
Mar-26
|
Apr-26
|
27-Apr-26
|
|
Moneyfacts Average
Savings Rate
|
0.39%
|
3.91%
|
3.65%
|
3.32%
|
3.40%
|
3.47%
|
|
Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs.
|
|
Source: Moneyfacts Average Savings Rate.
|
*Moneyfacts on-sale versus closed account data, back when a 0.25% BBR rise last occurred:
On-sale products - It took two months for average rates to catch up with the 0.25% BBR rise on 3 August 2023. Between the start of August and the start of October 2023 – The average easy access rate rose from 2.83% to 3.18%, and the ISA equivalent rose from 2.87% to 3.26% (AER).
Closed products - It took three months for the average easy access rate, and four months for the ISA equivalent, to catch up with the 0.25% BBR rise on 3 August 2023. Between the start of August and the start of October 2023 – The average easy access rate rose from 2.29% to 2.52%, and the ISA equivalent rose from 2.40% to 2.60% (AER).
