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last mo.

UK Savings Rates Slide to Multi-Month Lows as 'Easy Access' Deals Disappoint

A Bank of England rate cut is now pulling returns lower, prompting warnings that this marks a new era of weaker cash yields.

Out of the 50 accounts analysed, only 16 qualified as 'pure' easy access products (Photo: Dominic Lipinski//PA)
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Overview

  • The Moneyfacts Average Savings Rate fell to 3.35% in January, the lowest since May 2023 and down from 3.64% a year earlier.
  • Key averages hit multi-month lows, including easy-access at 2.48%, easy-access ISA at 2.69%, notice ISA at 3.34%, and one-year fixed at about 3.85%.
  • Research for Spring by Moneycomms found only 16 of 50 leading 'easy access' accounts allow unrestricted withdrawals, with 68% carrying conditions such as bonus expiries or withdrawal limits.
  • Among major high-street banks, true unrestricted easy-access savings pay an average of just 1.12%, with several large lenders offering around 0.9%.
  • December’s base rate cut to 3.75% is feeding through to deposits, and analysts caution there is room for further falls, urging savers to shop around or reassess cash allocations.