Top fixed savings rates hit highest levels since 2024

Savers can reap the rewards of higher guaranteed cash returns and make hundreds more pounds by switching old flexible accounts, regardless of any Bank of England Base Rate (BBR) moves, according to Moneyfactscompare.co.uk analysis.

• Savers must not be deterred from grabbing a top rate - A ‘wait and see’ approach is widely expected this week from The Bank of England’s Monetary Policy Committee, but regardless of BBR moves, savings rates have been rising and should not be overlooked. 
• Guaranteed cash returns on fixed rate bonds are at a two-year high. Top one-year bond rate of 4.91% gross is the highest rate available for new customers since October 2024 (4.95%, back when BBR was 5.00%). 
• Higher savings rates for longer - Longer-term fixed bonds are also thriving, the top five-year fixed bond rate of 4.94% is the highest offer since August 2024 (4.95%).
• Savers lose out on over £400* a year by not switching their flexible pots - A closed easy access account will be earning an average of 2.40%, yet if savers were instead to invest £20,000 into an account paying 4.51% gross for a year, it would net them £422 more. Moving a nest egg, large or small, is still worth the effort.
• Only one in five (18%) of live easy access accounts pay more than 3.75% (BBR).
• Highest cash returns across the market in over a year. The Moneyfacts Average New Savings Rate is now 3.59%, its highest point since May 2025 at 3.59%. 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Savers who want a guaranteed return on their hard-earned cash can reap the rewards of the highest fixed bond rates since 2024. Whether savers choose a shorter-term bond for one year, or a longer-term commitment of a five-year deal, both top rate deals have risen substantially in recent months, practically since the start of March 2026. This rare dose of good news for savers is somewhat of a silver lining after years of poor real returns. Ongoing tensions in the Middle East have seen notable rises to swap rates, and with the cost of living feared to worsen in the months ahead, now is an ideal time for savers to get a guaranteed inflation-busting return on their nest egg. 

“It would be unwise to rule out any changes to the Bank of England Base Rate (BBR) this year, but it’s important to stress that fixed savings rates are not tethered to rises or falls to the BBR. The top one-year fixed bond rate today at 4.91% stands above the BBR of 3.75%, and the last time the top deal was this high was in October 2024, at 4.95%, which was lower than the BBR at the time of 5%. Savers might want to move quickly to grab the best rates; for example if a challenger bank reaches its funding targets, this in turn can lead to a rate cut or the deal being pulled entirely. The last time a one-year bond paying 5% was available to new customers was back in September 2024 (5.05%). 

“Those savers who prefer to keep their cash close to hand with an easy access account must still make the effort to check their rate and switch, because loyalty does not pay. Over the course of 12 months, savers could miss out on over £400* in interest if they leave their cash to languish in a closed account if they have £20,000 saved. This is down to the lower rates paid on closed easy access accounts, of just 2.40% on average. Building societies and challenger banks are offering some of the top rates across the market, yet savers would also be wise to check to see if their existing bank offers an exclusive deal for a year or so, such as a regular savings account. The message is clear, savers must feel encouraged to take advantage of the lucrative returns on offer, regardless of any hold or change to the Bank of England Base Rate (BBR).”

*Based on a £20,000 investment earning 2.40% over 12 months earns £480 in interest, but on 4.51% gross (Tembo - HomeSaver) it earns £902 - a difference of £422, thus over £400.

Top fixed savings rates, based on a £10,000 investment, gross rates, available direct for new customers: 

• Top one-year bond on 23 July 2026 - 4.91% gross, Habib Bank Zurich plc and OakNorth Bank. Top deal in March 2026 was 4.25% from Rova. Top deal a year ago was 4.55% from Cynergy Bank and Marcus by Goldman Sachs. 
• Top five-year bond on 23 July 2026 - 4.94% gross, GB Bank. Top deal in March 2026 was 4.52% from UBL UK. Top deal a year ago was 4.64% from UBL UK.

Top rate data for historical analysis is based on the 1^st available day of each month.