The Bank of England’s decision to cut the base rate from 4 per cent to 3.75 per cent in December will affect savers across the country
Personal finance website Finder is urging people with savings accounts to re-evaluate their banking arrangements, as four major high street banks are poised to slash their rates in the upcoming fortnight. The experts at Finder have been meticulously tracking these shifts in savings rates to provide up-to-the-minute updates on which institutions are cutting rates and when.
The Bank of England’s recent move to lower the base rate from 4 per cent to 3.75 per cent in December will impact a multitude of savers across the country. These individuals are being warned to stay alert for any changes to their current savings account rates.
From Wednesday, January 14, Santander will be trimming the rates on its ‘Good for Life ISA’ and ‘Rate for Life’ accounts by 0.25 per cent. Additionally, a selection of accounts at NatWest and RBS are set to reduce their offerings on January 19 by up to 0.25 per cent.
Barclays customers also have reason to worry, according to Finder. The bank intends to decrease the rate on its ‘Reward Saver’, previously 2.10 per cent, and ‘Blue Rewards Saver’, formerly 2.75 per cent, to 1.85 per cent and 2.51 per cent respectively on January 28, 2026.
A detailed rundown of the forthcoming reductions in savings rates is provided below. The next review of the base rate is scheduled for February 5, 2026, reports the Daily Record.
Santander
- Good for Life ISA, January 14
- From 4.00% to 3.75%
Santander
- Rate for Life, January 14
- From 4.25% to 4.00%
NatWest
- Digital Regular Saver (up to £5,000), January 19
- From 5.50% to 5.25%
NatWest
- Flexible Saver (£1 – £24,999), January 19
- From 1.06% to 1.00%
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NatWest
- Savings Builder (up to £10,000), January 19
- From 1.50% to 1.25%
NatWest
- Help to Buy ISA, January 19
- From 1.85% to 1.60%
RBS
- Digital Regular Saver (over £5,000), January 19
- From 5.50% to 5.25%
RBS
- Flexible Saver (£1 – £24,999), January 19
- From 1.06% to 1.00%
RBS
- Savings Builder (over £10,000), January 19
- From 1.50% to 1.25%
Barclays
- Reward Saver, January 26
- From 2.10% to 1.85%
Barclays
- Blue Rewards Saver, January 26
- From 2.75% to 2.51%
Kate Steere, a personal finance expert at Finder, shed some light on these changes: “The gap between the best and worst savings rates on the market is striking. If you were earning the new NatWest or RBS rate of 1.00 per cent AER with the amount we found the average Brit has saved (£16,067), you’d get just £160 in interest over the course of the year.”
She added: “Compare this to a top-of-market rate like Chase’s 4.5 per cent, which would generate around £720 in interest on the same amount over the same period, and the real impact of where you put your money becomes clear.”
Ms Steere further commented: “Analysts aren’t predicting further changes to the base rate in the near future, so now is the time to give your savings a new year reset and find yourself a rewarding rate. 2026/2027 is also the last tax-year before the Cash ISA limit is cut to £12k, so if you can afford to lock your cash away, now is a great time to seek out a good deal on a fixed-rate ISA. Currently, Investec is offering 4.12% AER for a 1-year fix.”
