Understanding the base rate

How the base rate affects your savings can seem complex. We're here to help break down the facts.

The recent announcement

On 07 August 2025 the Bank of England announced a decrease in the Bank of England base rate from 4.25% to 4.00%.

Let’s look at the details

What is the base rate? expandable section

The base rate, or Bank Rate, impacts interest rates from banks and other financial institutions. The Bank of England sets it, regularly reviews it, and can increase or decrease it at any time.
How can a base rate change affect your account? expandable section

We consider the base rate among other factors when we decide on the interest rates for our savings accounts.

Whether a base rate change affects your interest rate depends on if you have a fixed or variable account. If you’re unsure what type of account you have, you can check this in the terms and conditions.
What will happen if the Bank of England base rate falls to 0% or below? expandable section

If the Bank of England announces a rate of 0% or below, we’ll keep our rates under review.

Accounts with a fixed rate

Your account won't be affected.

Accounts with a variable rate

Your interest rate could change.

Whenever the base rate changes, we review the interest rates of our variable accounts and could decide to change them. If we decide to lower your rate, we’ll write to you to let you know. We won’t write to you if we increase your rate.
How to check what your interest rate is expandable section

It's good to know you can check on your account anytime with our online services.

If you don’t use these services, you can use our PDFs to find your interest rate.

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The Financial Services Compensation Scheme (FSCS) protects up to £85,000 of the eligible money you hold with us.

More about the FSCS

Protecting your money

The Financial Services Compensation Scheme (FSCS) protects up to £85,000 of the eligible money you hold with us.

More about the FSCS

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Understanding the base rate

The recent announcement

Let’s look at the details

Accounts with a fixed rate

Accounts with a variable rate

Getting started online

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Mobile banking app

Online banking

Protecting your money

Protecting your money

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