Savings rates rocket following base rate hike. Here's the highest saving rates right now

After holding at a peak of 5.25% throughout late 2024, the Bank of England has entered a period of steady rate cuts. As of February 2026, the base rate stands at 3.75% following a 0.25% reduction in December 2025. The base rate can have a big impact on savings rates, as rates typically become more generous as borrowing costs increase.

While savings rates are no longer 'rocketing' from their historical lows, they remain at some of their most competitive levels in over a decade, though market leaders have begun to trim their offers in anticipation of further cuts.

For those with some savings, let's explore the current market-leading easy-access and fixed accounts.

How does the base rate impact savings rates?

The base rate refers to the rate at which banks can lend from one another. Over the past decade or so, interest rates have stood at rock-bottom levels. Because of this, the UK has become accustomed to cheap borrowing and pitiful returns for savers. However, so far in 2022, the Bank of England has hiked its base rate on FIVE occasions. Plus, members of the bank's Monetary Policy Committee have indicated further rises may be on the horizon if inflation doesn't subside.

When the base rate rises, borrowing becomes more expensive. This is why rising interest rates often leads to lenders hiking the cost of new mortgages, loans, and other types of credit. A climbing base rate also has a big impact on savings rates. Put simply, as the base rate rises, savings rates should also rise.

However, in the past we've seen banks and building societies show reluctance when it comes to passing on any base rate rises to savers. Because of this, it's best to expect savings rates to generally head upwards whenever the base rate rises.

In other words, while market-leading savings deals often become more generous when the base rate rises, rises that are exactly in line with the size of any base rate rise are a rarity. For example, while the top market-leading deal has since increased since Thursday's hike, the top rate hasn't increased by as much as 50 basis points.

What are the highest savings rates right now?

If you're a saver, it's a good time to sort your money as rates are rising across the board.

Easy-access savings

Chase Bank's continues to be a market favorite, offering a boosted easy-access rate of 4.5% AER (which includes a 12-month bonus on top of their standard variable rate). However, other app-based challengers are pushing for the crown; for instance, Plum and Chip have recently offered rates as high as 4.3% to 4.5% AER for new customers through promotional boosts.

Ulster Bank currently leads with an easy-access rate of 4.51% AER, while Monument Bank offers 4.16% AER (on deposits over £25,000). Sidekick is also competitive with a 4.23% AER multi-shield account, proving that savers can still find returns well above the 3.75% base rate if they look beyond traditional high-street names.

Fixed savings

Like easy-access deals, rates on fixed savings accounts are also strong. Fixed-rate bonds currently offer strong guaranteed returns, though we are seeing an 'inverted yield curve' where shorter fixes pay more than longer ones. As of February 2026, top 1-year fixed rates are hovering around 4.23% to 4.55% (e.g., Union Bank of India or Marcus by Goldman Sachs). In contrast, 5-year fixes have dropped to around 4.15% to 4.20%, reflecting market expectations that interest rates will be lower in the long term.

Keep in mind that market rates can change; but when your money is in a fixed account you can't access your cash before the term's up. This is why locking away cash for a very long period of time is a certain risk.

For those looking for a shorter commitment, UBL UK and Union Bank of India UK are currently offering roughly 4.23% AER for a 1-year fix. This allows you to lock in a rate significantly higher than the current inflation rate without committing your funds for multiple years.

Important: All accounts mentioned above have the full £85,000 FSCS savings safety protection.

Will savings rates continue rising?

With the Bank of England having begun its rate-cutting cycle, the consensus among analysts is that savings rates have likely passed their peak. In February 2026, the MPC voted 5–4 to hold the base rate at 3.75%, with nearly half the committee favoring a further cut. Savers should act now to lock in fixed deals, as rates are expected to trend downward toward 3.25% by the end of the year.

While these expected moves can already be priced in, if you currently have savings it may be best to look for a savings account now rather than wit. Remember, easy-access accounts allow you to add and withdraw cash at will. So if more generous accounts launch in future, you can simply move your money. Obviously this flexibility doesn't apply if you opt for a fixed account.

For more savings tips, and an updated list of the top accounts, take a look at our best savings accounts guide. And with rising rates, be aware of going over the Personal Savings Allowance, which you can read about here.