Savers are being urged to switch accounts to avoid losing out on returns, even if the Bank of England holds the base rate.
Analysis from Moneyfactscompare.co.uk shows around half of UK savings accounts currently offer rates above 3.75%, the current base rate, yet many savers remain in underperforming deals.
The data highlights a widening gap between on-sale and closed accounts, with older products continuing to lag behind newer, more competitive rates.
As of April 2026, the average easy access savings rate stood at 2.47% for on-sale accounts, compared to 2.39% for closed accounts. The gap is wider for ISAs, with on-sale rates at 2.75% versus 2.49% for closed products.
BETTER DEALS
The findings also suggest that savers in older accounts are slower to benefit from any future rate rises. Following the last base rate increase in August 2023, it took up to four months for improvements to filter through to some closed ISA accounts.
Over the past 12 months, savings rates have broadly kept pace with inflation, with the Moneyfacts average savings rate at 3.46% compared to an average Consumer Price Index of 3.45%. However, any renewed inflationary pressure could quickly erode real returns.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, says: “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.
“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.”
She adds that savers with £20,000 in an account paying 2.39% could lose more than £300 a year compared to switching to a deal offering 4%.
Springall also points to upcoming changes to ISA allowances, with the annual cash ISA limit set to fall from £20,000 to £12,000 from April 2027 for most savers, increasing the importance of maximising returns in the current tax year.
DEPOSIT BOOST
Mary-Lou Press (main picture, inset), President of NAEA Propertymark (National Association of Estate Agents), says: “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.”
