What’s next for interest rates in 2026?
3 minute read
What’s next for interest rates in 2026?
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Our million pound pledge
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How much do you know about interest rates? They can have a big impact on how your savings grow. And even a small change in rates can affect the amount of interest you earn.
As we move into 2026, lots of people are wondering what will happen with rates this year. Will they go up? Will they go down? We can’t predict the future, but we do have a few helpful insights so you can prepare.
Why do interest rates matter for savers?
An interest rate is the amount you’ll earn for the money you have in a savings account. If your interest rate is high, generally you’ll make more money. When your rate is lower, you’ll earn less.
When interest rates go down, this can affect variable rate savings accounts. Because these rates aren’t fixed, it means the rates can change at any time. There are a variety of factors that can cause these rates to change.
Fixed rate accounts offer more certainty. With these accounts, your interest rate will stay the same for a set period of time. The downside? You could miss out on higher rates if interest rates rise.
That’s why it helps to stay engaged with your savings. Checking your rate and knowing your options can help make sure your money keeps working for you.
What happened to interest rates in 2025?
What might happen to interest rates in 2026?
- Thursday 5 February 2026
- Thursday 19 March 2026
- Thursday 30 April 2026
- Thursday 18 June 2026
- Thursday 30 July 2026
- Thursday 17 September 2026
- Thursday 5 November 2026
- Thursday 17 December 2026
Many experts think any further cuts will be slow and steady. The Bank of England has also said that any move to lower rates will be “gradual”2.
As always, these are forecasts, not guarantees. The speed of change will depend on how the economy performs. Global events and inflation could all affect it. The Bank of England could also bring the base rate up if they think it’s needed. The MPC could change its approach if economic conditions change. Anything is possible!
How the base rate impacts your account with us
The base rate is one of the things we use to decide our interest rates. While our fixed rate accounts are, well, fixed(!), our variable accounts could be affected by the base rate.
We always aim to do what’s right for our members and offer you the best rates we can. If our rates do go up or down, we’ll let you know.
What can you do if rates fall in 2026?
There are a few simple steps you can take:
Check all your savings accounts - A quick review could highlight where your money might work harder elsewhere.
Think about using different types of savings accounts - Easy access accounts give flexibility. Fixed rate accounts offer certainty. We offer a range of fixed and variable rate savings products, from fixed bonds to easy access ISAs, which could help you save for your sunny days.
Keep your goals in mind - The right account depends on when you need your money. The highest rate is not always the best option if it limits access. Stay up to date to help you plan. Watching MPC announcements and savings trends can make future changes feel easier to manage.
We’re here to help
Sources:
[1] Source - Bank of England Announcement (8th May 2025) | Capital Economics
[2] Source - Interest rates and Bank Rate: our latest decision | Bank of England
Published January 2026
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