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.
Read also:
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
- Unveiling Innovation in Propulsion: A Deep Dive into the Advantages and Obstacles of Magnetic Engines
- Intensified farm machinery emissions posing challenges to China's net-zero targets
- EU Fuel Ban Alerts Mercedes Boss of Potential Crisis
