How will the change to the Base Rate affect my savings account?

On 4 August 2016 the Bank of England announced a decrease in the Bank of England Base Rate from 0.50% to 0.25%.

What is the Base Rate (also known as the Bank Rate)?

The Base Rate is set by the Bank of England and it affects the interest rates offered by Banks, Building Societies and other financial institutions. The Base Rate is reviewed monthly and can be increased or decreased by the Bank of England at any time. The Base Rate has been consistently low and until the recent changes, had been unchanged for 7 years.

What does it mean for my savings account?

The Bank of England Base Rate is one of a number of factors we take into account when reviewing interest rates. Any change in the Base Rate will form part of ongoing rate reviews across our savings product range.

How will I know if the interest rate of my account is affected?

If you have a savings account which:

  • tracks the Bank Rate, your rate will change on 1 December 2016.
  • has a fixed rate of interest, your account will not be affected by this change.
  • has a variable rate of interest, your account may be affected. On this occasion we will be writing to our customers to inform them of any change.

If you are unsure which type of account you hold, please refer to your account terms and conditions.

Other ways of checking your savings interest rate

You can view all rates for accounts we offer on our interest rates page, by logging on to Internet Banking and selecting your account, or by signing into our mobile and tablet apps.