Is it time to fix your savings?

We explain which accounts have changed since the base rate cut

Only 7% of easy access savings accounts have seen interest rate cuts since the Bank of England (BoE) reduced its base rate on May 8, according to an analysis.

This is significantly lower than the number of rate cuts recorded after the base rate was previously reduced in November 2024—the last time we conducted this analysis.

Some notable cuts were made by smaller providers. For example, Chip, which previously offered a market-leading easy access rate, slashed it from 4.76% AER to just 3.3%.

With more savings account rates likely to fall in the coming days and weeks, here we explain which accounts have been most affected—and what you can do to protect your money.

What’s happening to easy access accounts?

Base rate cuts are significant for savers, as banks typically respond by lowering the interest paid on savings accounts. Variable-rate products, like easy access accounts, are often the first to be affected.

We used Moneyfacts data to analyze all easy access account rates on April 30 and again on May 13—just one week before and five days after the BoE cut its rate from 4.5% to 4.25%.

We found that 7% of all easy access accounts had reduced their rates. While not a massive figure, most of these cuts came from smaller banks and building societies. In some cases, the cuts were steep—over a full percentage point.

Chip made the most dramatic reductions. The app-only provider lowered the rate on its Easy Access Saver—which limits customers to three withdrawals a year before penalties—from 4.76% AER to 3.3%, a drop of 1.43 points. The unlimited withdrawal version also fell sharply, dropping from 4.6% to 3.24% AER, a 1.36-point decrease.

OakNorth Bank also made a significant cut, reducing the rate on its Easy Access Savings Account from 3.25% AER to 2%, a 1.25-point drop.

Other digital banks made smaller cuts. Atom Bank reduced its unlimited access rate by 0.35 points, while Zopa and Tandem lowered their easy access rates by 0.25 points.

Among high street names, Barclays was the only one to reduce easy access rates, cutting returns on both its Everyday Saver and Rainy Day Saver by 0.1 and 0.26 points respectively.

Cause for optimism—or time to switch?

The proportion of easy access accounts hit by cuts after May’s base rate reduction is significantly lower than in November 2024, when we found that 19% of accounts had their rates reduced. This time, it’s just 7%.

Moneyfacts data shows that the average easy access rate slightly increased from 2.76% AER in April to 2.78% in May 2025. Our latest analysis also found that a handful of accounts have actually increased their rates since the May 8 cut—including those from Hampshire Trust Bank, Leeds Building Society, and West Brom Building Society.

However, any optimism should be tempered with caution. More providers are likely to reduce rates in the coming weeks. Savers should consider their next steps now.

Your first option is to switch to another easy access account offering a higher rate. Alternatively, opening a fixed-term savings account could lock in a guaranteed rate for the duration of the term—regardless of what happens elsewhere in the market.

Will savings rates fall further?

Savings rates surged to record highs after the BoE raised the base rate 14 times between December 2021 and August 2023.

When the base rate was first cut in August last year, average savings rates began to fall. Similar trends followed rate changes announced in November 2024 and February 2025.

As more providers respond to the shifting market, it’s likely that rates will continue to decline.

However, today’s rates remain significantly higher than they were two years ago, when the average easy access account offered just 2.06% AER. In May 2021, that figure was as low as 0.16% AER.

It’s also important to remember that the base rate isn’t the only factor influencing savings rates. Product demand and competition from other providers can also push rates up or down.

3 ways to maximise your savings when interest rates fall

Savvy savers should find it straightforward to hunt down the best rates. But how can you ensure your savings are working as hard as possible?

1. Lock in your savings for longer
It might seem counterintuitive when shorter-term fixed-rate accounts are currently offering better rates, but the best available one-year bond today might no longer exist when it matures.
If you don’t need access to your funds soon, consider a two- to five-year account instead. This could save you from settling for a lower rate later.

2. Make the most of your tax-free Isa allowance
There’s a limit to how much interest you can earn tax-free in standard savings accounts (£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers, and no allowance for additional-rate taxpayers). ISAs let you invest up to £20,000 per year, tax-free.

3. Sign up to a savings platform
Platforms like Raisin and Hargreaves Lansdown can help you find market-leading savings accounts. Once registered, you only need to remember one login.

Most platforms notify you when a bond matures to help prevent your savings from languishing in a low-interest account. But remember, savings platforms don’t cover the entire market—so you might miss the best rate from a provider not included on the platform.