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Higher for longer outlook boosts savings returns

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Caitlyn Eastell, Apprentice Press & PR Assistant
Caitlyn Eastell, Personal Finance Analyst 01603 476169 Email Caitlyn
22/04/2026
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Higher for longer outlook boosts savings returns

A higher for longer outlook could lift savings returns, but borrowers still face rising mortgage costs of up to £1,700, Moneyfactscompare.co.uk analysis can reveal.

Higher for longer outlook boosts savings returns

A higher for longer outlook could lift savings returns, but borrowers still face rising mortgage costs of up to £1,700, Moneyfactscompare.co.uk analysis can reveal.

Mortgages

  • Since the previous inflation announcement, the Moneyfacts Average Mortgage rate has risen from 5.50% to 5.71%.
  • Meanwhile, the average two-year fixed rate has risen from 5.56% to 5.83%. The average five-year fixed rate has risen from 5.54% to 5.73%.
  • Borrowers are still facing an over £1,700 yearly increase on an average two-year fix or over £1,300 on the average five-year fix based on a typical £250,000 mortgage over 25 years since the Iran conflict began, despite rate hikes stabilising.
  • Some of the biggest lenders, such as HSBC, Lloyds Bank Halifax and Barclays Mortgage have reduced their fixed rate mortgages by up to 0.37% in the past week.

 

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“Rising mortgage rates seem to have stabilised as average rates have held firm in recent weeks. However, borrowers could still be facing a £1,700 yearly increase on a two-year fix or £1,300 on a five-year fix since the conflict in Iran began. Swap rates have edged closer to 4%, and this has spurred a handful of the biggest lenders to start introducing cuts. Markets are still sensitive to sudden shifts, so it remains to be seen how long this will be the case. Homebuyers will need to evaluate their affordability because rates could stay higher for longer as the Bank of England tries to bring inflation back towards its target.”

 

Mortgages

  • Since the previous inflation announcement, the Moneyfacts Average Mortgage rate has risen from 5.50% to 5.71%.
  • Meanwhile, the average two-year fixed rate has risen from 5.56% to 5.83%. The average five-year fixed rate has risen from 5.54% to 5.73%.
  • Borrowers are still facing an over £1,700 yearly increase on an average two-year fix or over £1,300 on the average five-year fix based on a typical £250,000 mortgage over 25 years since the Iran conflict began, despite rate hikes stabilising.
  • Some of the biggest lenders, such as HSBC, Lloyds Bank Halifax and Barclays Mortgage have reduced their fixed rate mortgages by up to 0.37% in the past week.

 

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“Rising mortgage rates seem to have stabilised as average rates have held firm in recent weeks. However, borrowers could still be facing a £1,700 yearly increase on a two-year fix or £1,300 on a five-year fix since the conflict in Iran began. Swap rates have edged closer to 4%, and this has spurred a handful of the biggest lenders to start introducing cuts. Markets are still sensitive to sudden shifts, so it remains to be seen how long this will be the case. Homebuyers will need to evaluate their affordability because rates could stay higher for longer as the Bank of England tries to bring inflation back towards its target.”

 

Savings

  • The Consumer Price Index (CPI) rose to 3.3% during March, from 3.0% in February. The Bank of England’s projection rate for inflation during Q1 2027 is 1.7%.
  • The Moneyfacts Average Savings Rate currently sits at 3.46%, which is higher than inflation, meaning savers can get real returns on their cash but it’s still important to shop around for the best rates.
  • There are currently 1,582 savings accounts that beat inflation* (139 easy access, 131 notice accounts, 138 variable rate ISAs, 387 fixed rate ISAs and 787 fixed rate bonds).
  • In April 2025, there were 1,608 deals that could beat CPI which was then at 2.6% (March 2025 CPI) and in April 2024, there were 1,364 deals that could beat CPI which was at 3.2% (March 2024 CPI).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“The fading rate environment attitude at the start of the year has U-turned as fresh inflation shocks continue to shift base rate expectations. By Q3, inflation is expected to hit 3.5%. The last time it was around this figure there were 1,224 deals that could beat CPI but based on today’s rates there would be over 200 more*. The ‘higher for longer’ stance could temporarily push this number even higher, giving savers unrivalled choice, however, providers may not be able to maintain these competitive margins as markets remain volatile.

“During times of uncertainty, some savers may place higher value on flexibility. Easy access accounts can be useful to help manage monthly volatility, giving savers the freedom to respond to unexpected costs. Today the top easy access account edges ahead of even the top fixed bonds, on £10,000 that equates to a small £5 yearly advantage, but this can quickly grow on larger sums. However, savers not willing to bet on variable rates remaining elevated may be willing to sacrifice the higher rates for guaranteed returns.

“Savers face a tricky balancing act. While they may be able to enjoy more competitive returns in the short-term, inflation will quickly catch up, eroding their hard-earned cash. In any case it’s crucial savers shop around for deals that pay over 3.3% to ensure they aren’t left out of pocket.”

Savings

  • The Consumer Price Index (CPI) rose to 3.3% during March, from 3.0% in February. The Bank of England’s projection rate for inflation during Q1 2027 is 1.7%.
  • The Moneyfacts Average Savings Rate currently sits at 3.46%, which is higher than inflation, meaning savers can get real returns on their cash but it’s still important to shop around for the best rates.
  • There are currently 1,582 savings accounts that beat inflation* (139 easy access, 131 notice accounts, 138 variable rate ISAs, 387 fixed rate ISAs and 787 fixed rate bonds).
  • In April 2025, there were 1,608 deals that could beat CPI which was then at 2.6% (March 2025 CPI) and in April 2024, there were 1,364 deals that could beat CPI which was at 3.2% (March 2024 CPI).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“The fading rate environment attitude at the start of the year has U-turned as fresh inflation shocks continue to shift base rate expectations. By Q3, inflation is expected to hit 3.5%. The last time it was around this figure there were 1,224 deals that could beat CPI but based on today’s rates there would be over 200 more*. The ‘higher for longer’ stance could temporarily push this number even higher, giving savers unrivalled choice, however, providers may not be able to maintain these competitive margins as markets remain volatile.

“During times of uncertainty, some savers may place higher value on flexibility. Easy access accounts can be useful to help manage monthly volatility, giving savers the freedom to respond to unexpected costs. Today the top easy access account edges ahead of even the top fixed bonds, on £10,000 that equates to a small £5 yearly advantage, but this can quickly grow on larger sums. However, savers not willing to bet on variable rates remaining elevated may be willing to sacrifice the higher rates for guaranteed returns.

“Savers face a tricky balancing act. While they may be able to enjoy more competitive returns in the short-term, inflation will quickly catch up, eroding their hard-earned cash. In any case it’s crucial savers shop around for deals that pay over 3.3% to ensure they aren’t left out of pocket.”

 

Savings market analysis

Top savings deals at £10,000 gross

17-Apr-24

16-Apr-25

25-Mar-26

Today

Easy access account

Ulster Bank – 5.20%

Atom Bank – 4.65%

Tembo Money – 4.71% (includes bonus)

Tembo Money – 4.71% (includes bonus)

Notice account

Hinckley & Rugby BS – 5.25% (180-day)

Kent Reliance – 4.77% (60-Day)

The Stafford BS – 4.26% (180-Day)

The Stafford BS – 4.26% (180-Day)

One-year fixed rate bond

SmartSave – 5.17%

Cynergy Bank – 4.65% (payable on maturity)

Union Bank of India (UK) Ltd – 4.45% (payable on maturity)

MBNA – 4.66% (payable on maturity)

Two-year fixed rate bond

iFAST Global Bank – 5.10%

Close Brothers Savings – 4.58%

Market Harborough BS – 4.65%

RCI Bank UK – 4.65%

Three-year fixed rate bond

UBL UK – 4.85% (payable on maturity)

UBL UK – 4.61% (payable on maturity)

Market Harborough BS – 4.75%

RCI Bank UK – 4.60%

Four-year fixed rate bond

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.31% (payable on maturity)

thisbank – 4.57%

Five-year fixed rate bond

UBL UK – 4.95% (payable on maturity)

UBL UK – 4.64% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

Close Brothers Savings – 4.67%

Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

17-Apr-24

16-Apr-25

25-Mar-26

Today

Easy access ISA

Moneybox – 5.16% (includes bonus)

Moneybox – 5.71% (includes bonus)

Plum – 4.62% (includes bonus)

Plum – 4.27% (includes bonus)

Notice ISA

West Brom BS – 5.10% (60-day)

Tipton & Coseley BS – 4.50% (60-day)

Aldermore 4.15% - (60 Day)

Aldermore 4.15% - (60 Day)

One-year fixed rate ISA

Virgin Money – 5.05%

Gatehouse Bank – 4.35%** (payable on maturity)

Hodge Bank – 4.36%

Investec Save – 4.52% (payable on maturity)

Two-year fixed rate ISA

State Bank of India – 4.65% (payable on maturity)

UBL UK – 4.35% (payable on maturity)

Charter Savings Bank – 4.36%

Santander – 4.50%

Three-year fixed rate ISA

UBL UK – 4.59% (payable on maturity)

UBL UK – 4.39% (payable on maturity)

West Brom BS – 4.40%

Close Brothers Savings – 4.53%

Four-year fixed rate ISA

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.15% (payable on maturity)

UBL UK – 4.15% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 4.52% (payable on maturity)

UBL UK – 4.58% (payable on maturity)

UBL UK – 4.49% (payable on maturity)

UBL UK – 4.57% (payable on maturity)

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

 

Savings market analysis

Top savings deals at £10,000 gross

17-Apr-24

16-Apr-25

25-Mar-26

Today

Easy access account

Ulster Bank – 5.20%

Atom Bank – 4.65%

Tembo Money – 4.71% (includes bonus)

Tembo Money – 4.71% (includes bonus)

Notice account

Hinckley & Rugby BS – 5.25% (180-day)

Kent Reliance – 4.77% (60-Day)

The Stafford BS – 4.26% (180-Day)

The Stafford BS – 4.26% (180-Day)

One-year fixed rate bond

SmartSave – 5.17%

Cynergy Bank – 4.65% (payable on maturity)

Union Bank of India (UK) Ltd – 4.45% (payable on maturity)

MBNA – 4.66% (payable on maturity)

Two-year fixed rate bond

iFAST Global Bank – 5.10%

Close Brothers Savings – 4.58%

Market Harborough BS – 4.65%

RCI Bank UK – 4.65%

Three-year fixed rate bond

UBL UK – 4.85% (payable on maturity)

UBL UK – 4.61% (payable on maturity)

Market Harborough BS – 4.75%

RCI Bank UK – 4.60%

Four-year fixed rate bond

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.31% (payable on maturity)

thisbank – 4.57%

Five-year fixed rate bond

UBL UK – 4.95% (payable on maturity)

UBL UK – 4.64% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

Close Brothers Savings – 4.67%

Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

17-Apr-24

16-Apr-25

25-Mar-26

Today

Easy access ISA

Moneybox – 5.16% (includes bonus)

Moneybox – 5.71% (includes bonus)

Plum – 4.62% (includes bonus)

Plum – 4.27% (includes bonus)

Notice ISA

West Brom BS – 5.10% (60-day)

Tipton & Coseley BS – 4.50% (60-day)

Aldermore 4.15% - (60 Day)

Aldermore 4.15% - (60 Day)

One-year fixed rate ISA

Virgin Money – 5.05%

Gatehouse Bank – 4.35%** (payable on maturity)

Hodge Bank – 4.36%

Investec Save – 4.52% (payable on maturity)

Two-year fixed rate ISA

State Bank of India – 4.65% (payable on maturity)

UBL UK – 4.35% (payable on maturity)

Charter Savings Bank – 4.36%

Santander – 4.50%

Three-year fixed rate ISA

UBL UK – 4.59% (payable on maturity)

UBL UK – 4.39% (payable on maturity)

West Brom BS – 4.40%

Close Brothers Savings – 4.53%

Four-year fixed rate ISA

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.15% (payable on maturity)

UBL UK – 4.15% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 4.52% (payable on maturity)

UBL UK – 4.58% (payable on maturity)

UBL UK – 4.49% (payable on maturity)

UBL UK – 4.57% (payable on maturity)

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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©2026 Moneyfacts Group plc. All Rights Reserved. Use of this Website constitutes acceptance of the Company’s General Terms of Use & Privacy Policy. Moneyfacts Group plc is registered in England and Wales, company no. 4063110. Registered office: Moneyfacts House, 66-70 Thorpe Road, Norwich, NR1 1BJ. Moneyfacts, MONEY £ ACTS and INTEREST are Registered Trademarks.