Multiple banks decrease easy-access savings rates - urgent actions to secure top financial savings plans immediately
Following the Bank of England's 0.25 percentage point base rate cut to 4.25% on August 7, 2025, the trend in savings rates is clearly downward, especially for easy-access savings accounts and ISAs.
In the past week, there have been no new facts about savings account reductions. However, over the past month, more than 20 easy-access savings providers have reduced their rates, contributing to a noticeable fall in average rates paid for these products.
The average rate for easy-access ISAs dropped by 0.46 percentage points to 2.90% in the year leading up to August 2025[1]. Top easy-access ISA rates continued to decline through July and August, with only a few accounts still paying above 4.50% AER. This decline is expected to continue given the likelihood of further base rate cuts and the current inflationary environment[2].
Several providers have already lowered their rates shortly after the Bank of England's cut. For example:
- Atom Bank reduced its Instant Saver Reward account rate from 4.51% to 3.93% (a 0.58 percentage point drop)[4].
- OakNorth Bank cut its 20-day notice account rate by 0.34 percentage points to 3.78%[4].
- Skipton decreased its Cash ISA Saver and Children’s Trust Saver rates by 0.5 percentage points each[4].
- Santander cut its Junior ISA rate by 0.10 percentage points to 2.7%[4].
- NatWest lowered its cash ISA by 0.25 percentage points and its Help to Buy ISA by 0.20%[4].
This pattern reflects a broader trend among large banks such as NatWest, Chase, and Santander, adjusting down their interest rates to align with the lowered Bank of England base rate[4].
In addition, savings providers like Chip, Plum, Zopa, Atom Bank, Trading 212, Monument, Monzo, and Chase have already lowered their easy-access savings account rates. The Moneyfacts Average Savings Rate has dropped from 3.5% to 3.47%.
Santander Good for Life Isa or Rate for Life account interest rates will be lowered by 0.25% from September 2, while Co-op Bank will reduce its Base Rate Tracker savings accounts by 0.25%. Aldermore will drop its savings account and Isa by an even bigger margin, from 3.55% to 3.15%, also on August 22.
Among the few providers offering competitive rates, Hodge Bank follows with the second-highest easy-access account with no strings attached, paying 4.4%. Kent Reliance offers the top easy-access account with no strings attached, paying 4.41%. Cahoot's Sunny Day saver pays 5% but has a limit of £3,000.
Rachel Springall, a financial expert at Moneyfacts Compare, advises consumers to stay informed and switch accounts to avoid getting a raw deal. "Savers are advised to regularly review and consider switching accounts in response to these changes to find the most competitive rates available," she said[2].
[1] Bank of England, August 2025. [2] Moneyfacts, August 2025. [4] Press releases from various banks, August 2025.
- In the midst of the Bank of England's rate cut, many banking and finance institutions have adjusted their savings rates, especially for easy-access savings accounts and ISAs, to align with the lower base rate.
- Given the ongoing inflationary environment and the likelihood of further base rate cuts, personal finances experts like Rachel Springall recommend that consumers stay informed and regularly review their savings accounts to find the most competitive rates.
- The decline in savings rates has been apparent in the industry, with more than 20 easy-access savings providers reducing their rates over the past month, causing a noticeable fall in average rates paid for these products.
- The trend of lowering savings rates has extended to the investing sector as well, with various providers like Trading 212 also reducing their easy-access savings account rates, impacting personal-finance management.
