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 November 2024, the Bank of England announced a decrease in the Bank of England Base Rate from 5.00% to 4.75%.

What is the Base Rate?

The Base Rate, also known as the Bank Rate, affects the interest rates offered by Banks, Building Societies and other financial institutions. It is set by the Bank of England, which regularly reviews it and can increase or decrease it at any time.

How can a Base Rate change affect your account?

The Base Rate is one of a number of things we look at when reviewing the interest rates of our savings accounts.

What will happen if the Bank of England Base Rate falls to 0% or below?

In the event of the Bank of England announcing a rate of 0% or below, we will keep our rates under review.

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 will write to you to let you know. We will not write to you if we increase your rate.

How to check what your interest rate is

Any interest rate changes will be shown on our Savings page.