18th June 2026
Savers with closed accounts are urged to move their pots, to beat the Bank of England Base Rate (BBR). Loyalty does not pay. This is according to Moneyfactscompare.co.uk analysis.
Savings market analysis
Loyalty does not pay. A closed easy access account will be earning a pitiful 2.39%, which results in a loss of £322 a year unless savers were instead to invest £20,000 into an account paying 4.00%. Moving a nest egg, large or small, is still worth the effort.
Four in five (80%) of live easy access accounts pay less than 3.75%, the Bank of England Base Rate (BBR), with the average rate paying less than inflation.
Savers with closed accounts must act now to review their rates. Even if BBR were to rise in the coming months, it takes longer for these customers to feel the benefits of interest rate rises*. BBR last rose by 0.25% back on 3 August 2023. It took two months for on-sale savings deals to catch up (easy access and easy access ISAs), but it took three months for closed accounts for easy access customers to improve, and four months for those with a closed easy access ISA.
Highest cash returns in over a year. The Moneyfacts Average Savings Rate is now 3.57%, its highest point since May 2025 at 3.59%. However, some savers can be missing out by being blinded by loyalty and ignoring fixed rates.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said, "Savers blinded by loyalty or failing to check their easy access accounts regularly could be earning a paltry rate. Even if savers have a small amount saved, a pot out of sight means it is out of mind.
Convenience comes at a cost, so savers who keep their pots with a high street bank, or even in a current account, are not making their money work as hard as it could. Challenger banks and building societies offer some of the best returns on the savings market and switching doesn’t take much effort, yet some savers might feel it’s not worth doing.
Now that 80% of easy access accounts pay less than 3.75%, the Bank of England Base Rate (BBR), the bleak reality is many will see their hard-earned cash lose value in real terms, due to inflation sitting at 2.8%.
“Savers who have their cash stashed in a closed savings account might be earning a paltry rate right now, and even if BBR were to rise, it takes longer for closed accounts to see any benefit*.
The top savings rates on live easy access accounts pay more than 4%, yet some of the biggest high street banks pay just 1%. A closed easy access account will be earning a pitiful 2.39% on average, which results in a loss of £322 a year unless savers instead deposited £20,000 into an account earning 4.00%. You can’t blame savers for feeling apathetic, but it’s important to review rates every six months or so at the bare minimum.
“Those with no emergency fund should know it’s never too late to start saving little and often to build a nest egg, yet one in 10 do not have any cash savings, according to the Financial Conduct Authority (FCA).
Savers can automate the habit by using apps which are designed to move disposable cash out of a bank account, which can be a satisfying way to grow a savings pot gradually.
However, those with lump sums could be better off opening a fixed rate bond or ISA, to lock into a guaranteed rate for peace of mind. Fixed savings rates have been on the rise over the past few months, with the one-year fixed bond rising by 0.45%, from 3.79% in March 2026 to 4.24%, yet over the same period, the average easy access account has risen by just 0.11% from 2.42% to 2.53%. Much of this change to fixed rates is down to speculation that interest rates will remain higher for longer, and providers working hard to draw in funds.
“Savings providers do not have to pass on BBR rises, but savers can find a handful of easy access accounts which have a rate guarantee linked to moves. Providers such as LemFi, Tembo Money and Chase will follow moves to the Bank of England Base Rate, so they could be worth considering.
However, these providers also apply an introductory bonus rate, so it’s important to make a diary note to review and switch if it no longer offers a good deal. One thing these brands all have in common is that the savings accounts must be opened via a mobile app, which will not suit those who need to bank in branch for accessibility reasons.
Those who prefer to manage their account in branch will still find building societies leading the charge to offer BBR-beating savings deals, offering fair value in line with their principles, so they should not go unnoticed.
“Shielding hard-earned cash from tax will become increasingly important for savers, with fiscal drag causing millions to have their Personal Savings Allowance (PSA) halved, down from £1,000 in earned interest to just £500. Just one change can help savers protect their savings pot, placing it in an ISA. Cash ISAs are popular for this very reason, as £12bn was deposited into ISAs in April 2026, one of the largest monthly deposit totals since records began in April 1999. However, this is the last year to use up the full £20,000 cash ISA allowance for those aged under 65, with rules changing in April 2027 to reduce the limit to £12,000.
The idea is to drive more savers to consider a stocks and shares ISA, which can provide more fruitful returns in the longer-term, but it’s vital savers get good advice to feel more confident to invest before they make the leap.”