- Savers should still be able to make more than 4% on savings and beat inflation in 2026.
- There will be pressure on easy access and variable savings rates in the first half of 2026, and HL expects them to fall towards 3.5% by the end of the year.
- The most competitive fixed rate savings accounts are likely to remain stable, above 4%, as future cuts are already priced in.
- For the first time in years, a meaningful gap will open between easy access and fixed rate accounts.
- Moving from a miserable account at the big five banks to the top paying accounts in 2026 could make you over 3 percentage points more.
Mark Hicks, director of savings, Hargreaves Lansdown:
“Sluggish savers are going to work harder to stay ahead of inflation in 2026, while savvy savers will need to switch strategy – from chasing the top rates to identifying the best types of accounts for their needs.
Sluggish savers
The Bank of England is expected to continue a gradual cutting cycle, and HL forecasts two cuts in 2026 – to reach 3.25% by the end of the year. Savers should still be able to get decent returns, even after inflation, but they will need to work harder.
The big five banks already pay 1% on their regular savings accounts, so it’s worth considering taking money out of low‑paying savings accounts with the high street giants and checking the rates available with online banks and savings platforms, which tend to offer much better deals. Moving from a miserable account at the big five banks to the top paying accounts in 2026 could make you over 3 percentage points more.
Savvy savers
For those who have been more focused on getting top rates, the focus will also need to shift. For years, they have been able to get better returns from easy access accounts instead of opting for fixed rate deals – where the money is tied up for a period in return for a guaranteed rate.
Throughout 2025, we have seen both easy access and fixed rates fall significantly. As we predicted back in 2025, easy access rates have fallen further than fixed rates across both ISA and non-ISA products. This is typical when the market is coming to the end of a rate cutting cycle. This is likely to continue into 2026. There will be further pressure on easy‑access and variable savings rates in the first half of 2026 as rates fall. We expect them to fall towards 3.5% by the end of the year. The risk shifts from “missing the peak” savings rates to quietly sliding back into low‑paying accounts.
Meanwhile, the most competitive fixed rate savings accounts are likely to remain stable above 4% as future cuts are already priced in. For the first time in years, a meaningful gap will open up between easy access and fixed rate accounts. It means the UK savings market in 2026 is likely to shift from a pure “rate grab” environment to one where, as interest rates edge lower, savers need to find the right accounts for their needs.
A savings strategy
Any cash that is unlikely to be needed during 2026 could be locked into competitive fixed term cash ISAs or savings accounts – or a combination of both – to make the most of both tax efficiency and the most competitive rates.
A sensible structure is to keep an emergency buffer in easy access – enough to cover 3-6 months’ worth of essential spending, and then ladder the rest across different fixed terms at around 4.2–4.4%, so more of your money earns a higher, predictable return, while fixed term rates beat easy access.
One of the easiest ways to manage a number of different types of account with different banks is to use an online savings platform, which lets you switch easily without the paperwork of opening new accounts, and keep an eye on everything in one place.”
Changes in Savings rates throughout 2025
| Jan-25 | Dec-25 | Change | ||
| ISA | EA | 4.90% | 4.28% | 0.62% |
| 12m Fixed | 4.53% | 4.31% | 0.22% | |
| Non- ISA | EA | 4.86% | 4.48% | 0.38% |
| 12m Fixed | 4.77% | 4.55% | 0.22% | |
