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Savings rates

The UK Bank Base Rate was held at 5.25% in November.

At the beginning of the year there was the expectation that rapidly rising interest rates would be temporary and would fall rapidly. Over the last few months, stronger than expected economies has led to increases in long term bond yields. The Bank of England in their report last week said that projections expected interest rates to remain at the current level until the middle of next year.


9th November 2023

Despite these higher rate expectations, the market leading one-year fixed rate bond of 6.2% was withdrawn by National Savings and Investments (NS&I) early in October. As NS&I are backed by HM Treasury, it is generally accepted that they should not distort the savings market by offering rates higher than is generally available. It has been felt that high street banks have not passed on the base rate increases to their savers, especially on easy access accounts so this may have been to exert pressure on them.

You should check the rate on any savings accounts you have with high street banks, as these may be lower than market rates. While having a small amount in these accounts for convenience may be fine, you could be losing out on interest if you have more substantial deposits with them.

Looking at rates at the time of writing (on Tuesday 7 November) an indicative sample of the rates you can secure at present are as follows:

Source: 07.11.23

There is also some cash held in portfolios for the purpose of paying fees and the rate for this cash is currently 4.26%, which while not the very best rate available is competitive.

We have not included institutions in the table above as rates change quickly. If you wish to review the interest rates you are getting currently, please do speak to your Old Mill financial planner.