Banks are engaging in a covert tactic that could jeopardize your savings, warns Sylvia Morris. If you hold one of these bank accounts, prompt action is necessary to safeguard your money.
Top Easy-Access Savings Account Rates Fall Following Bank of England Base Rate Cut
After the Bank of England cut its base rate by 0.25% to 4% in August 2025, top easy-access savings account rates have experienced a significant drop but still remain relatively high compared to the base rate.
The best easy-access rate is now from the Chase Saver With Boosted Rate account, which dropped from 5% to 4.75% AER. Other notable rates include Atom Bank's Reward Saver Account, reduced from 4.6% to 4% AER, and Santander's Easy Access Saver Limited Edition, which dropped from 4% to 3% AER as of August 1, 2025.
Moneybox offers an instant access savings account at 2.9% AER, with a 1% bonus if linked to qualifying ISA or pension accounts, and a variable ISA rate of 4% initially, dropping to 3.75% after 12 months. The best easy access ISA rates currently reach up to 4.7% AER, but these are variable and have started falling following the base rate cut, with further declines expected if the base rate falls again.
Among the worst is Chip with an underlying rate of just 3.04% once the bonus has disappeared. On the other hand, some accounts still offer rates above 4% AER, such as Vida Savings with a one-year fixed-rate cash Isa rate of 4.25pc and Paragon with a 15-month fixed-rate cash Isa rate of 4.28pc.
Building societies typically change their rates at the start of the next month after a base-rate fall. Notable building societies, including Yorkshire and Coventry, have announced that their rates are under review.
In the fixed-rate bond market, the best rate stands at 4.44pc from Vanquis Bank, while Atom bank's fixed-rate bond rate is 4.42pc. The best one-year fixed-rate cash Isa rate remains unchanged at 4.31pc from Shawbrook Bank.
Following this base rate cut, savings providers quickly reduced interest rates on various accounts. New app-based accounts such as Trading 212, Plum, and Moneybox have been cutting rates, while some savings providers like Atom bank have seen significant reductions in their rates. For example, Atom bank's Instant Saver Reward dropped from 4.6pc to 4pc, more than twice the size of the base rate cut.
Overall, while easy-access savings rates have experienced a "huge" cut following the base rate drop, some accounts still offer rates above 4% AER, which is notably higher than the current 4% Bank of England base rate. However, rates are expected to continue trending lower due to the base rate cuts and inflation conditions.
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