Understanding the base rate

The base rate changing may impact your savings. We're here to explain the facts.

Useful to know

On 6 February 2025, the Bank of England announced a decrease in the Bank of England base rate from 4.75% to 4.50%.

A 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.

Getting started online

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

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

Everyday banking

Help & security

Difficult times

Go paper-free

Bank accounts

Features & support

Already bank with us?

Borrowing

Features & support

Already borrowing with us?

Your Credit Score

Mortgages

Features & support

Already with us?

Mortgage support

Savings

Features & support

Already saving with us?

Think ISA first

Investing

Guides and support

Already investing with us?

Introducing our Self-Invested Personal Pension (SIPP)

Insurance

Other insurance

Claims

Already insured with us?

Support for existing customers

Home insurance

Understanding the base rate

Useful to know

A look at the details

Getting started online

Mobile banking app

Online banking

Mobile banking app

Online banking

Protecting your money

Protecting your money

You might also like

Message us online

Your Credit Score

Money worries

Savings accounts and ISAs

Savings accounts and ISAs

Products and services expandable section Products and services

Help & security expandable section Help & security

Legal expandable section Legal

About us expandable section About us

Products and services

Help & security

Legal

About us