Savings rates in the UK move up and down depending on the base rate set by the Bank of England. This also follows inflation, as the central bank will generally raise the base rate when inflation is high to bring it down and lower it again when inflation is within the central bank’s target range. In times of high inflation, it’s worth taking advantage of better rates on savings accounts.
The UK’s average instant access savings rate was 2.61% as of November 2024. This is down from a 13-year high of 2.82% in January 2024.
Meanwhile, the average variable cash ISA interest rate was 2.20% as of November 2024. This is down from a peak of 3.37% in October 2023, but up from an average rate of 2.37% in January 2024.
Savers can generally find higher rates in fixed-rate ISAs, where you lock your money away for a set period. The average savings interest rate for a 1-year fixed rate ISA was 4.09% in November 2024, down from 5.48% in October 2023.
| Month | Cash ISA (variable) | 1 year fixed rate ISA | Instant access |
|---|---|---|---|
| Nov 24 | 2.20% | 4.09% | 2.61% |
| Oct 24 | 2.58% | 4.21% | 2.65% |
| Sep 24 | 2.52% | 4.43% | 2.66% |
| Aug 24 | 2.90% | 4.62% | 2.73% |
| Jul 24 | 2.80% | 4.59% | 2.79% |
| Jun 24 | 2.86% | 4.54% | 2.78% |
| May 24 | 2.92% | 4.56% | 2.76% |
| Apr 24 | 2.78% | 4.53% | 2.77% |
| Mar 24 | 2.68% | 4.56% | 2.80% |
| Feb 24 | 2.93% | 4.64% | 2.81% |
| Jan 24 | 2.37% | 4.65% | 2.82% |
| Dec 23 | 2.74% | 4.98% | 2.81% |
| Nov 23 | 2.95% | 5.27% | 2.80% |
| Oct 23 | 3.37% | 5.48% | 2.77% |
| Sep 23 | 3.15% | 5.47% | 2.74% |
| Aug 23 | 2.65% | 5.39% | 2.56% |
| Jul 23 | 2.70% | 5.01% | 2.23% |
| Jun 23 | 2.59% | 4.36% | 1.82% |
| May 23 | 2.43% | 4.12% | 1.74% |
| Apr 23 | 2.61% | 4.01% | 1.63% |
| Mar 23 | 1.96% | 3.73% | 1.53% |
| Feb 23 | 1.85% | 3.97% | 1.44% |
| Jan 23 | 1.73% | 3.80% | 1.24% |
| Dec 22 | 1.90% | 3.48% | 1.20% |
| Nov 22 | 1.76% | 3.18% | 0.99% |
| Oct 22 | 1.70% | 3.35% | 0.92% |
| Sep 22 | 1.44% | 2.62% | 0.64% |
| Aug 22 | 0.81% | 2.13% | 0.47% |
| Jul 22 | 0.68% | 1.80% | 0.42% |
| Jun 22 | 0.62% | 1.72% | 0.31% |
| May 22 | 0.51% | 1.43% | 0.26% |
| Apr 22 | 0.48% | 0.96% | 0.22% |
| Mar 22 | 0.47% | 0.81% | 0.15% |
| Feb 22 | 0.31% | 0.69% | 0.12% |
| Jan 22 | 0.31% | 0.54% | 0.11% |
| Dec 21 | 0.19% | 0.43% | 0.11% |
| Nov 21 | 0.21% | 0.46% | 0.11% |
| Oct 21 | 0.17% | 0.41% | 0.11% |
| Sep 21 | 0.17% | 0.38% | 0.11% |
| Aug 21 | 0.17% | 0.35% | 0.09% |
| Jul 21 | 0.16% | 0.29% | 0.08% |
| Jun 21 | 0.19% | 0.33% | 0.07% |
| May 21 | 0.24% | 0.33% | 0.06% |
| Apr 21 | 0.17% | 0.30% | 0.06% |
| Mar 21 | 0.13% | 0.35% | 0.07% |
| Feb 21 | 0.33% | 0.35% | 0.06% |
| Jan 21 | 0.35% | 0.43% | 0.06% |
| Dec 20 | 0.32% | 0.46% | 0.06% |
| Nov 20 | 0.35% | 0.76% | 0.07% |
| Oct 20 | 0.26% | 0.54% | 0.08% |
| Sep 20 | 0.22% | 0.56% | 0.07% |
| Aug 20 | 0.21% | 0.56% | 0.07% |
| Jul 20 | 0.22% | 0.56% | 0.09% |
| Jun 20 | 0.38% | 0.71% | 0.16% |
| May 20 | 0.57% | 0.98% | 0.23% |
| Apr 20 | 0.52% | 1.04% | 0.28% |
| Mar 20 | 0.54% | 1.27% | 0.39% |
| Feb 20 | 0.56% | 1.21% | 0.41% |
| Jan 20 | 0.60% | 1.22% | 0.41% |
| Dec 19 | 0.57% | 1.23% | 0.41% |
| Nov 19 | 0.53% | 1.29% | 0.43% |
| Oct 19 | 0.87% | 1.30% | 0.43% |
| Sep 19 | 0.93% | 1.27% | 0.43% |
| Aug 19 | 0.89% | 1.24% | 0.43% |
| Jul 19 | 0.87% | 1.23% | 0.44% |
| Jun 19 | 0.95% | 1.25% | 0.44% |
| May 19 | 0.85% | 1.21% | 0.45% |
| Apr 19 | 0.86% | 1.35% | 0.45% |
| Mar 19 | 0.95% | 1.36% | 0.45% |
| Feb 19 | 0.90% | 1.40% | 0.45% |
| Jan 19 | 0.86% | 1.41% | 0.27% |
| Dec 18 | 0.93% | 1.43% | 0.27% |
| Nov 18 | 0.89% | 1.43% | 0.27% |
| Oct 18 | 0.96% | 1.45% | 0.27% |
| Sep 18 | 0.85% | 1.42% | 0.27% |
| Aug 18 | 0.76% | 1.31% | 0.22% |
| Jul 18 | 0.68% | 1.34% | 0.21% |
| Jun 18 | 0.68% | 1.30% | 0.21% |
| May 18 | 0.63% | 1.20% | 0.20% |
| Apr 18 | 0.68% | 1.17% | 0.20% |
| Mar 18 | 0.88% | 1.24% | 0.21% |
| Feb 18 | 0.86% | 1.12% | 0.20% |
| Jan 18 | 0.94% | 1.26% | 0.20% |
| Dec 17 | 0.36% | 1.19% | 0.21% |
| Nov 17 | 0.29% | 1.23% | 0.12% |
| Oct 17 | 0.27% | 1.42% | 0.12% |
| Sep 17 | 0.30% | 1.19% | 0.14% |
| Aug 17 | 0.35% | 1.11% | 0.14% |
| Jul 17 | 0.33% | 0.97% | 0.14% |
| Jun 17 | 0.34% | 0.98% | 0.15% |
| May 17 | 0.41% | 0.96% | 0.15% |
| Apr 17 | 0.45% | 0.99% | 0.15% |
| Mar 17 | 0.43% | 0.74% | 0.15% |
| Feb 17 | 0.44% | 0.91% | 0.15% |
| Jan 17 | 0.40% | 0.89% | 0.15% |
| Dec 16 | 0.49% | 0.85% | 0.15% |
| Nov 16 | 0.59% | 0.90% | 0.25% |
| Oct 16 | 0.64% | 0.85% | 0.26% |
| Sep 16 | 0.65% | 0.80% | 0.28% |
| Aug 16 | 0.70% | 1.09% | 0.28% |
| Jul 16 | 0.81% | 1.06% | 0.34% |
| Jun 16 | 0.85% | 1.07% | 0.40% |
| May 16 | 0.87% | 1.07% | 0.40% |
| Apr 16 | 0.92% | 1.10% | 0.44% |
| Mar 16 | 0.87% | 1.26% | 0.46% |
| Feb 16 | 0.91% | 1.38% | 0.46% |
| Jan 16 | 0.86% | 1.40% | 0.47% |
| Dec 15 | 0.85% | 1.17% | 0.48% |
| Nov 15 | 0.99% | 1.38% | 0.54% |
| Oct 15 | 0.99% | 1.39% | 0.54% |
| Sep 15 | 0.98% | 1.52% | 0.54% |
| Aug 15 | 1.01% | 1.51% | 0.55% |
| Jul 15 | 1.01% | 1.43% | 0.54% |
| Jun 15 | 1.01% | 1.46% | 0.54% |
| May 15 | 1.01% | 1.40% | 0.56% |
| Apr 15 | 1.03% | 1.41% | 0.56% |
| Mar 15 | 1.02% | 1.41% | 0.55% |
| Feb 15 | 1.02% | 1.41% | 0.55% |
| Jan 15 | 1.02% | 1.43% | 0.55% |
| Dec 14 | 1.05% | 1.41% | 0.57% |
| Nov 14 | 1.09% | 1.46% | 0.57% |
| Oct 14 | 1.09% | 1.49% | 0.63% |
| Sep 14 | 1.09% | 1.50% | 0.62% |
| Aug 14 | 1.09% | 1.50% | 0.62% |
| Jul 14 | 1.19% | 1.50% | 0.62% |
| Jun 14 | 1.17% | 1.49% | 0.72% |
| May 14 | 1.19% | 1.48% | 0.73% |
| Apr 14 | 1.31% | 1.54% | 0.73% |
| Mar 14 | 1.40% | 1.55% | 0.73% |
| Feb 14 | 1.18% | 1.50% | 0.73% |
| Jan 14 | 1.17% | 1.50% | 0.76% |
| Dec 13 | 1.09% | 1.50% | 0.81% |
| Nov 13 | 1.17% | 1.54% | 0.75% |
| Oct 13 | 1.26% | 1.61% | 0.75% |
| Sep 13 | 1.26% | 1.67% | 0.75% |
| Aug 13 | 1.26% | 1.74% | 0.75% |
| Jul 13 | 1.26% | 1.75% | 0.76% |
| Jun 13 | 1.32% | 1.78% | 0.83% |
| May 13 | 1.40% | 1.74% | 0.83% |
| Apr 13 | 1.90% | 1.90% | 0.98% |
| Mar 13 | 1.94% | 2.01% | 0.98% |
| Feb 13 | 1.84% | 2.01% | 1.03% |
| Jan 13 | 1.78% | 2.02% | 1.05% |
| Dec 12 | 1.85% | 2.16% | 1.05% |
| Nov 12 | 2.03% | 2.20% | 1.07% |
| Oct 12 | 2.21% | 2.34% | 1.42% |
| Sep 12 | 2.39% | 2.54% | 1.53% |
| Aug 12 | 2.52% | 2.53% | 1.53% |
| Jul 12 | 2.57% | 2.63% | 1.55% |
| Jun 12 | 2.57% | 2.66% | 1.55% |
| May 12 | 2.70% | 2.72% | 1.53% |
| Apr 12 | 2.84% | 2.78% | 1.54% |
| Mar 12 | 2.83% | 2.77% | 1.54% |
| Feb 12 | 2.57% | 2.51% | 1.55% |
| Jan 12 | 2.41% | 2.60% | 1.54% |
| Dec 11 | 2.41% | 2.59% | 1.52% |
| Nov 11 | 2.41% | 2.59% | 1.52% |
| Oct 11 | 2.42% | 2.69% | 1.51% |
| Sep 11 | 2.42% | 2.69% | 1.50% |
| Aug 11 | 2.37% | 2.54% | 1.47% |
| Jul 11 | 2.54% | 2.59% | 1.42% |
| Jun 11 | 2.31% | 2.51% | 1.46% |
| May 11 | 2.65% | 2.54% | 1.45% |
| Apr 11 | 2.68% | 2.70% | 1.44% |
| Mar 11 | 2.68% | 2.48% | 1.33% |
| Feb 11 | 2.47% | 2.33% | 1.31% |
| Jan 11 | 2.41% | 2.43% | 1.29% |
Inflation represents how goods and services rise in cost and decrease your money’s value. While interest rates on savings accounts might make it seem like your account’s value is increasing, inflation could be causing your savings to lose value in “real terms”.
According to our recent survey, the average savings per person in the UK is £11,185. If that amount had been put in a standard variable ISA in January 2014, it would have effectively lost £2,718 in real terms by January 2024.
We calculated this by comparing how average savings rates have kept up with inflation. For example, if average savings rates had been at the level of inflation, £11,185 deposited in 2014 would be worth £14,986 in 2024. Instead, with the actual average savings rates, your savings would be worth £12,268. Most of this loss comes in the last few years, as inflation has soared due to various geopolitical and economic events.
The inflation rate is now coming down after hitting a high of 11.1% in October. This could be the best time to lock in a higher savings rate, as many fixed-rate savings accounts and ISAs are offering higher savings interest rates.
| Year | Difference |
|---|---|
| Jan 17 | £73 |
| Jan 16 | £81 |
| Jan 15 | -£26 |
| Jan 14 | -£7 |
| Jan 18 | -£203 |
| Jan 19 | -£393 |
| Jan 20 | -£515 |
| Jan 21 | -£564 |
| Jan 22 | -£913 |
| Jan 23 | -£2,045 |
| Jan 24 | -£2,718 |
The average inflation rate in the UK reached a 41-year high of 11.1% in October 2022. This triggered a rise in the base rate and a rise in overall savings rates, although banks were not quick to pass on rates to consumers.
This meant that savings rose to higher average interest rates than before, although as the inflation rate decreases, we’ve seen savings rates begin to drop again.
The inflation rate in September 2024 was 1.7%, which is lower than the average easy access savings rate.
| Month | Average instant access savings rate | CPI inflation rate |
|---|---|---|
| Oct 24 | 2.65% | 2.30% |
| Sep 24 | 2.66% | 1.70% |
| Aug 24 | 2.73% | 2.20% |
| Jul 24 | 2.79% | 2.20% |
| Jun 24 | 2.78% | 2.00% |
| May 24 | 2.77% | 2.00% |
| Apr 24 | 2.77% | 2.30% |
| Mar 24 | 2.80% | 3.20% |
| Feb 24 | 2.81% | 3.40% |
| Jan 24 | 2.82% | 4.00% |
| Dec 23 | 2.81% | 4.00% |
| Nov 23 | 2.80% | 3.90% |
| Oct 23 | 2.77% | 4.60% |
| Sep 23 | 2.74% | 6.70% |
| Aug 23 | 2.56% | 6.70% |
| Jul 23 | 2.23% | 6.80% |
| Jun 23 | 1.82% | 7.90% |
| May 23 | 1.74% | 8.70% |
| Apr 23 | 1.63% | 8.70% |
| Mar 23 | 1.53% | 10.10% |
| Feb 23 | 1.44% | 10.40% |
| Jan 23 | 1.24% | 10.10% |
| Dec 22 | 1.20% | 10.50% |
| Nov 22 | 0.99% | 10.70% |
| Oct 22 | 0.92% | 11.10% |
| Sep 22 | 0.64% | 10.10% |
| Aug 22 | 0.47% | 9.90% |
| Jul 22 | 0.42% | 10.10% |
| Jun 22 | 0.31% | 9.40% |
| May 22 | 0.26% | 9.10% |
| Apr 22 | 0.22% | 9.00% |
| Mar 22 | 0.15% | 7.00% |
| Feb 22 | 0.12% | 6.20% |
| Jan 22 | 0.11% | 5.50% |
| Dec 21 | 0.11% | 5.40% |
| Nov 21 | 0.11% | 5.10% |
| Oct 21 | 0.11% | 4.20% |
| Sep 21 | 0.11% | 3.10% |
| Aug 21 | 0.09% | 3.20% |
| Jul 21 | 0.08% | 2.00% |
| Jun 21 | 0.07% | 2.50% |
| May 21 | 0.06% | 2.10% |
| Apr 21 | 0.06% | 1.50% |
| Mar 21 | 0.07% | 0.70% |
| Feb 21 | 0.06% | 0.40% |
| Jan 21 | 0.06% | 0.70% |
| Dec 20 | 0.06% | 0.60% |
| Nov 20 | 0.07% | 0.30% |
| Oct 20 | 0.08% | 0.70% |
| Sep 20 | 0.07% | 0.50% |
| Aug 20 | 0.07% | 0.20% |
| Jul 20 | 0.09% | 1.00% |
| Jun 20 | 0.16% | 0.60% |
| May 20 | 0.23% | 0.50% |
| Apr 20 | 0.28% | 0.80% |
| Mar 20 | 0.39% | 1.50% |
| Feb 20 | 0.41% | 1.70% |
| Jan 20 | 0.41% | 1.80% |
| Dec 19 | 0.41% | 1.30% |
| Nov 19 | 0.43% | 1.50% |
| Oct 19 | 0.43% | 1.50% |
| Sep 19 | 0.43% | 1.70% |
| Aug 19 | 0.43% | 1.70% |
| Jul 19 | 0.44% | 2.10% |
| Jun 19 | 0.44% | 2.00% |
| May 19 | 0.45% | 2.00% |
| Apr 19 | 0.45% | 2.10% |
| Mar 19 | 0.45% | 1.90% |
| Feb 19 | 0.45% | 1.90% |
| Jan 19 | 0.27% | 1.80% |
| Dec 18 | 0.27% | 2.10% |
| Nov 18 | 0.27% | 2.30% |
| Oct 18 | 0.27% | 2.40% |
| Sep 18 | 0.27% | 2.40% |
| Aug 18 | 0.22% | 2.70% |
| Jul 18 | 0.21% | 2.50% |
| Jun 18 | 0.21% | 2.40% |
| May 18 | 0.20% | 2.40% |
| Apr 18 | 0.20% | 2.40% |
| Mar 18 | 0.21% | 2.50% |
| Feb 18 | 0.20% | 2.70% |
| Jan 18 | 0.20% | 3.00% |
| Dec 17 | 0.21% | 3.00% |
| Nov 17 | 0.12% | 3.10% |
| Oct 17 | 0.12% | 3.00% |
| Sep 17 | 0.14% | 3.00% |
| Aug 17 | 0.14% | 2.90% |
| Jul 17 | 0.14% | 2.60% |
| Jun 17 | 0.15% | 2.60% |
| May 17 | 0.15% | 2.90% |
| Apr 17 | 0.15% | 2.70% |
| Mar 17 | 0.15% | 2.30% |
| Feb 17 | 0.15% | 2.30% |
| Jan 17 | 0.15% | 1.80% |
| Dec 16 | 0.15% | 1.60% |
| Nov 16 | 0.25% | 1.20% |
| Oct 16 | 0.26% | 0.90% |
| Sep 16 | 0.28% | 1.00% |
| Aug 16 | 0.28% | 0.60% |
| Jul 16 | 0.34% | 0.60% |
| Jun 16 | 0.40% | 0.50% |
| May 16 | 0.40% | 0.30% |
| Apr 16 | 0.44% | 0.30% |
| Mar 16 | 0.46% | 0.50% |
| Feb 16 | 0.46% | 0.30% |
| Jan 16 | 0.47% | 0.30% |
| Dec 15 | 0.48% | 0.20% |
| Nov 15 | 0.54% | 0.10% |
| Oct 15 | 0.54% | -0.10% |
| Sep 15 | 0.54% | -0.10% |
| Aug 15 | 0.55% | 0.00% |
| Jul 15 | 0.54% | 0.10% |
| Jun 15 | 0.54% | 0.00% |
| May 15 | 0.56% | 0.10% |
| Apr 15 | 0.56% | -0.10% |
| Mar 15 | 0.55% | 0.00% |
| Feb 15 | 0.55% | 0.00% |
| Jan 15 | 0.55% | 0.30% |
| Dec 14 | 0.57% | 0.50% |
| Nov 14 | 0.57% | 1.00% |
| Oct 14 | 0.63% | 1.30% |
| Sep 14 | 0.62% | 1.20% |
| Aug 14 | 0.62% | 1.50% |
| Jul 14 | 0.62% | 1.60% |
| Jun 14 | 0.72% | 1.90% |
| May 14 | 0.73% | 1.50% |
| Apr 14 | 0.73% | 1.80% |
| Mar 14 | 0.73% | 1.60% |
| Feb 14 | 0.73% | 1.70% |
Savings rates 30 years ago were generally much higher than they are now due to the base rate being much higher. In 1990, the base rate was 13.88%, which meant that savings rates were high to keep in line with it.
By the year 2000, the base rate was 5.75%, and the average savings rates hovered around this mark. Then, by the end of 2008, it had been reduced to 2.00%, and by 2009, it was lowered even further to 0.50%, meaning low savings rates came with it.
Average savings rates remained low through the 2010s but began rising again in 2022 as the Bank of England began to raise the base rate once more in an effort to control inflation.
The average inflation rate in the UK reached a 41-year high in October 2022. Meanwhile, between 1995 and 2020, the UK experienced relatively low inflation of around 2%. The average inflation since 1989 is 2.69%.
Out of the last 34 years, 2022 recorded the highest inflation rate at 9.1%, followed by 1991 with 7.5%. The CPI (Consumer Price Index) inflation rate peaked at 11.1% in October 2022, while the CPIH (Consumer Prices Index including owner occupiers’ housing costs) inflation rate peaked at 9.6%.
| Year | Average inflation rate |
|---|---|
| 2023 | 7.30% |
| 2022 | 9.10% |
| 2021 | 2.60% |
| 2020 | 0.90% |
| 2019 | 1.80% |
| 2018 | 2.50% |
| 2017 | 2.70% |
| 2016 | 0.70% |
| 2015 | 0% |
| 2014 | 1.50% |
| 2013 | 2.60% |
| 2012 | 2.80% |
| 2011 | 4.50% |
| 2010 | 3.30% |
| 2009 | 2.20% |
| 2008 | 3.60% |
| 2007 | 2.30% |
| 2006 | 2.30% |
| 2005 | 2.10% |
| 2004 | 1.30% |
| 2003 | 1.40% |
| 2002 | 1.30% |
| 2001 | 1.20% |
| 2000 | 0.80% |
| 1999 | 1.30% |
| 1998 | 1.60% |
| 1997 | 1.80% |
| 1996 | 2.40% |
| 1995 | 2.60% |
| 1994 | 2% |
| 1993 | 2.50% |
| 1992 | 4.20% |
| 1991 | 7.50% |
| 1990 | 7% |
| 1989 | 5.20% |
Matt Mckenna
UK Head of Communications
T: +44 20 8191 8806
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