Savers are being urged to take action and avoid complacency, even if the Bank of England Base Rate (BBR) remains unchanged, according to analysis from Moneyfactscompare.co.uk. With rates still shifting unevenly across the market, many consumers risk missing out on stronger returns simply by staying put.
Half of savings accounts outperform base rate
Analysis shows that around half of UK savings accounts currently pay more than the 3.75% BBR. While this suggests savers can still achieve inflation-beating returns in the short term, Moneyfacts warns that this position may not last. Should inflationary pressures persist or worsen, real returns could quickly be eroded, particularly if interest rates remain static amid stagflation concerns.
The disparity between accounts also highlights the importance of switching. As of early April 2026, the average easy access savings rate stood at 2.47%, compared with 2.39% on closed accounts. For ISAs, the gap is similarly evident, with on-sale accounts averaging 2.75% versus 2.49% on closed products.
Closed accounts slow to respond to rate rises
Savers stuck in older, closed accounts are particularly disadvantaged when rates rise. Following the last 0.25% increase in the BBR on 3 August 2023, it took two months for on-sale easy access accounts and ISAs to reflect higher rates. However, closed accounts lagged significantly, taking three months for easy access products and four months for easy access ISAs to show improvement.
This delay means savers not actively switching could miss out on meaningful gains even when rates are rising.
Inflation outpacing some returns
The Moneyfacts Average Savings Rate has recently risen month-on-month, marking its strongest increase since September 2023. However, over the past year, returns have broadly tracked inflation rather than exceeding it in a meaningful way. Between April 2025 and March 2026, the Consumer Price Index (CPI) averaged 3.45%, compared with a Moneyfacts Average Savings Rate of 3.46% over the same period.
While this suggests savers are broadly keeping pace with inflation, the margin remains extremely narrow.
‘Apathy trap’ warning for savers
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, warned that inertia remains one of the biggest threats to savers’ returns.
Springall 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.”
She added that challenger banks and mutuals continue to drive much of the strongest value in the market, with building societies also playing a key role in delivering competitive returns in line with their mutual principles.
Springall also warned that savers in closed accounts may be losing out significantly, particularly if inflation accelerates again.
According to Springall, “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.”
She highlighted that a closed easy access account paying 2.39% could cost a saver around £322 per year compared to an account paying 4.00% on a £20,000 balance.
Given this, she recommended savers review their accounts at least every six months.
ISA changes and tax pressures add urgency
Springall also pointed to upcoming changes in the ISA landscape as a further reason for savers to act. The current tax year is the final one before changes reduce the cash ISA allowance from £20,000 to £12,000 from 6 April 2027, although those aged 65 and over will retain the full allowance.
The policy shift is designed to encourage greater investment activity, but Springall urged savers to seek advice before making decisions based on the change.
At the same time, fiscal drag continues to erode tax-free allowances. The Personal Savings Allowance (PSA) has effectively been halved for many savers, falling from £1,000 to £500 in taxable interest for basic rate taxpayers, reinforcing the importance of ISAs in protecting returns.
Market snapshot
Despite recent improvements, average savings rates remain highly varied across account types. As of April 2026, easy access accounts averaged 2.47%, while one-year fixed bonds reached 4.04%. Five-year fixed ISAs stood higher still at 4.15%, reflecting continued demand for longer-term deposits.
The Moneyfacts Average Savings Rate has also edged higher, rising to 3.47% by 27 April 2026, compared with 3.40% earlier in the month. However, the longer-term trend shows a slowdown from peaks seen in 2024.
Sharing her thoughts on this latest Moneyfacts update, Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), comments:
“For first-time buyers, maximising returns on savings is more important than ever. Every extra pound earned in interest can help boost a deposit, improve mortgage options, and strengthen overall financial resilience. With changes to ISA allowances on the horizon, now is also a crucial window for savers to take full advantage of existing tax-efficient products.
“In a market where both inflation and borrowing costs continue to influence buyer behaviour, making informed and active financial decisions is essential. Seeking advice and exploring the full range of savings options available can help ensure that aspiring homeowners are in the strongest possible position to achieve their goals.”
Savings market analysis by Moneyfacts
Average savings rates (£10,000 deposit, AER):
| Product | 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% |
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% |
Source: Moneyfacts Average Savings Rate
