Average UK Savings Rates (September 2026)
The average quoted rate on a 1-year fixed bond is 4.35%, and on a 2-year fixed cash ISA 4.53%, according to the Bank of England.
| Product | September 2026 | A year earlier | Change |
|---|---|---|---|
| 1-year fixed rate bond | 4.35% | 3.79% | +0.56 points |
| 2-year fixed rate cash ISA | 4.53% | 3.79% | +0.74 points |
What the average rate earns
| Savings | Interest a year at 4.35% | A month |
|---|---|---|
| £1,000 | £44 | £4 |
| £5,000 | £218 | £18 |
| £10,000 | £435 | £36 |
| £20,000 | £870 | £73 |
| £50,000 | £2,175 | £181 |
Compared with the Bank Rate and inflation
The Bank Rate is 3.75% and CPI inflation was 3.1% in August 2026. A savings rate above inflation grows your money in real terms. Find out what your money was worth in the past with the inflation calculator.
About these figures
These are averages of the rates quoted by banks and building societies for new savers, published by the Bank of England. The best accounts usually pay more than the average. Easy-access accounts normally pay less than fixed bonds because you can take your money out at any time. This is not financial advice.
Source: Bank of England Statistical Interactive Database, quoted household interest rates. Figures fetched 12 October 2026.
Frequently asked questions
What is the average savings rate in the UK?
The Bank of England reports an average quoted rate of 4.35% on 1-year fixed-rate bonds and 4.53% on 2-year fixed cash ISAs in September 2026.
Is it better to save in an ISA?
Interest in an ISA is tax-free, so it is worth most to people who would otherwise pay tax on their savings interest. The yearly limit is £20,000. See the savings interest tax calculator.
Do savings rates beat inflation?
Inflation (CPI) was 3.1% in August 2026. A savings rate above that means your money grows in real terms; below it, your money buys less over time, even though the balance goes up.
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.