Rachel Reeves delivered her Spring Forecast this afternoon, which had been overshadowed before it even started by events in the Middle East.

As expected, the Spring Forecast (rather than Spring Statement as it has been referred to in previous years) did not include any fiscal changes, with Reeves previously committing to only holding one fiscal event each year, in the Autumn Budget.

By way of updates, Reeves announced that the Office for Budget Responsibility (OBR) had ‘adjusted the profile of GDP’ resulting in it downgrading its UK Growth projection for 2026 from 1.4% (as forecast in November 2025) to 1.1%, but the OBR increased its forecasts for 2027 (1.5% to 1.6%) and 2028 (again 1.5% to 1.6%).  Reeves also heralded the interest rate cuts seen in recent months, but events in the Middle East have significantly reduced the chance of a further cut in March, given the inflationary oil and gas price rises seen since the weekend.

Therefore, the most important upcoming tax changes are those we already knew about, specifically:

• A 2% increase in dividend tax taking effect on 6 April 2026.
• VCT tax relief being cut from 30% to 20% on 6 April 2026.
• Business and Agricultural Relief limited to £2.5m per individual, with effect from 6 April 2026 – this importantly increased from the previously proposed £1m and can be passed between spouses if not used on first death.
• A 2% increase in savings and property taxes taking effect on 6 April 2027.
• A cap in Cash ISA contributions of £12,000 for under 65s with effect from 6 April 2027.
• Pensions forming part of estates for inheritance tax purposes from 6 April 2027.
• A Mansion Tax being introduced in April 2028.
• Salary Sacrifice pension contributions benefiting from National Insurance Contribution savings limited to £2,000 with effect from 6 April 2029.
• Income Tax thresholds frozen until April 2031.

If you would like to discuss the impact of the above on your personal financial situation, why not get in touch for a free initial conversation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions

The Financial Conduct Authority (FCA) does not regulate estate planning or tax advice.

The increasing number of online ‘finfluencers’ has pushed regulators to take legal action in an unprecedented crackdown on online personalities handing out financial advice.

Following a freedom of information act requested by BrokerChooser, the Financial Conduct Authority (FCA) revealed action being taken against unauthorised finfluencers has increased by 174% last year.  

Importantly, this has led to three finfluencers being arrested and charged with encouraging followers to invest in high-risk foreign exchange traded funds. Their court appearances are set for 2027.

This is important as it demonstrates the shifting landscape around unregulated financial advice. For many years the finfluencer trend has been growing, with many content creators, such as those found on TikTok or Instagram, pivoting to give their often young audience questionable financial advice, sometimes in the form of ‘get rich quick’ schemes.  

Given the sheer scale of unregulated financial advice being promoted on these social platforms, there are calls for broader social media reform and platform cooperation. 34 million videos are uploaded to TikTok every day, and the FCA cannot check every one.  

However, the first arrests demonstrate that the FCA is serious about cracking down on the trend, and sets a precedent that things are changing.

The FCA commented: “Even when social media platforms remove the illegal content we flag, new accounts pop up in no time with identical, or almost identical, content. They must be more proactive in identifying and removing unlawful content early before it reaches UK consumers.”

Despite this, it is important to recognise that there is another side, and the FCA does acknowledge that some finfluencers can offer helpful guidance, which makes policing the content all the more difficult.

What is a ‘finfluencer’?

Finfluencer is a relatively new term, used to describe a content creator who operates on social media to promote financial products and services to their audience. What separates a finfluencer’s advice from real financial advice is the finfluencer is often unqualified, unauthorised and unregulated. Finfluencer derives from the term ‘influencer’ which, in marketing and social media terms, refers to a person with the ability to influence viewer’s opinions on social media or video sharing platforms like YouTube. You do not need to prove that you have any qualifications to become a finfluencer, you just need to have an audience.

The problem with finfluencers

If a finfluencer is knowledgeable about the product or service they promote and their content is considered 'responsible' by the FCA, finfluencers can actually be beneficial. They help to educate buyers and help them to evaluate their choices and understand the variety of products available to them in a simple and easy to digest way.

The problem is that there are many examples where this is not the case. Many finfluencers promote unlawful 'get rich quick' schemes or act irresponsibly in their communications, with endorsement of questionable crypto investments and ‘memestocks’ being a common trend (at the time of writing). In such cases, less knowledgeable audience members could be exploited and even scammed, with 55% of those who have followed financial advice on social media reporting losing money, according to TSB.

Aside from the obvious detriment to the victims of this kind of unlicensed advice, the wider reaching implication is that this misinformation leads to a general distrust of financial services, further discouraging financial literary and ultimately hurting the average consumer.

 If you are tired of misinformation and are seeking real, impartial and fully qualified financial advice, book a free non-committal initial consultation with one of our accredited advisers who will be happy to help. Alternatively, you can give us a call on 0333 323 9065.  

Arrange your free initial consultation

This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.

It’s been a curious few weeks for savers; a tale of two trends in the fixed rate tables in particular and a timely reminder that inflation, the Bank of England base rate and savings account rates don’t always move in perfect harmony. The good news is that the resilience of certain pockets of the savings market is providing a golden opportunity for those who are quick to act.

Inflation: heading in the right direction  

The latest figures from the Office for National Statistics (ONS) show that the rising cost of living slowed to 3% in the 12 months to January 2026, down from 3.4% in December last year. That’s a meaningful drop and, on the face of it, very welcome news for households.  

Better still, many forecasters expect inflation to continue to fall this year, potentially reaching the Bank of England’s 2% target by the summer.  

However, what’s good news for borrowers and the wider economy isn’t all good news for savers.  

With inflation easing, the likelihood of further base rate cuts from the Bank of England has increased. Markets are widely expecting a 0.25% cut at the next meeting on 19th March, with an ever increasing possibility of a couple more to follow later in the year.

And that’s where things get interesting.

A tale of two fixed rate tables

Despite the expectation of falling base rates, savings rates have been remarkably resilient. So now could be a good time to lock in some of your cash, to hedge against further base rate and therefore savings rate cuts.  

In the fixed rate bond tables, shorter-term rates have edged down slightly recently, but not dramatically. The top 1-year bond is currently paying 4.23% from Union Bank of India UK, only fractionally lower than the 4.25% we saw from DF Capital before it withdrew its market-leading deal a couple of weeks ago.  

In the 2-year space, rates have also dipped only marginally. Chetwood Bank now tops the table at 4.17%, just shy of the 4.19% and 4.18% that were available recently from Close Brothers, Birmingham Bank and OakNorth Bank before those products were withdrawn.  

But here’s the really encouraging part: longer-term rates have actually ticked up.

Chetwood has also taken the lead in the 3-year table with 4.20%, nudging OakNorth into second place at 4.18%. And in the 5-year table, Chetwood is offering 4.36% AER – the highest 5-year rate we’ve seen since November last year!  

So, while short-term rates may be softening slightly in anticipation of base rate cuts, those willing to lock in, especially for the longer term, are being rewarded.  

A similar pattern in fixed rate ISAs

The fixed rate cash ISA tables tell a very similar story.  

Shorter-term ISA rates have edged down. The top 1-year ISA is now 4.10% from State Bank of India UK, compared with 4.15% just a couple of weeks ago. The average of the top five has also slipped as providers have withdrawn higher-paying deals and replaced them with slightly less generous versions.  

In the 2-year ISA table, Furness Building Society leads at 4.07%, but that’s still below the 4.11% that had been available from Tandem Bank recently.  

The 3-year ISA table has been steadier.  Aldermore remained mostly unchallenged at 4.15%. Close Brothers had briefly knocked Aldermore from its perch offering 4.16%, but this has subsequently been withdrawn.  And unfortunately Tandem and Cynergy which were also offering 4.15% have launched new ISAs paying less, so overall the average has fallen. As a result of this benign behaviour from others, Aldermore has reduced the rate it’s offering to 4.10% - lower but still the best rate!

In the 5-year ISA market, there has been a little more competition, pushing rates up. Castle Trust Bank launched a 5-year ISA at 4.25%, just ahead of Hampshire Trust Bank at 4.24%. Close Brothers then matched the 4.25%, albeit with a higher minimum deposit.  

Once again, the message is clear: if inflation and interest rates continue to fall, those who lock in now, especially for longer, could look back and feel very smug indeed.  

It’s probably worth remembering that whilst at first glance cash ISAs look like they pay a lower interest rate than the equivalent fixed rate bonds, once you strip tax from the advertised rate, cash ISAs often offer far better value to those who pay income tax on their normal savings.    

For example, at the time of writing, the top 1-year fixed rate bond is paying 4.23% AER, whilst the top 1-year fixed rate cash ISA is paying 4.10% tax-free/AER. For those who don’t pay tax on their savings, the bond is clearly the winner as it would provide an extra £13 of gross interest for each £10,000 deposited. 

But if you are a taxpayer, you could earn more in the ISA. The rate on the bond would fall to 3.38% after basic rate tax has been deducted, so a basic rate taxpayer with a deposit of £20,000 would earn £820 in the cash ISA, but just £676 from the bond, if they have already used their Personal Savings Allowance. 

The real danger is inertia  

According to the Bank of England, more than £298 billion is sitting in current accounts earning no interest at all. Zero. Nothing. Not even enough to buy a coffee.  

And the high street bank’s so-called savings accounts often pay some of the worst rates available - well below inflation. If inflation is 3% and you’re earning less than that, the purchasing power of your cash is quietly eroding. But it doesn’t have to be that way. You can do better – much better.  

The first and most obvious solution is to shop around and open the best accounts directly. The top rates in the market are significantly higher than those offered by most high street banks. Yes, it may mean opening accounts with names you’re less familiar with, but provided they are authorised and therefore part of the Financial Services Compensation Scheme (FSCS), your money is safe up to the new limit of £120,000 per person, per banking license.  

The exception is if you choose to hold funds with National Savings and Investments (NS&I), as all money held in the State-owned bank is fully backed by the Treasury, regardless of how much that is, although the payoff is that its rates have become less competitive of late.  

For some, opening and monitoring multiple savings accounts is fine.  For others, it’s precisely the reason they never move their money.  

The rise of the cash platform  

And this is where innovation is finally catching up with savers’ needs.  

Cash platforms – including our own Savers Hub, powered by Insignis – allow you to access a wide range of competitive savings accounts through a single log-in. You can spread large sums across multiple banks, stay within FSCS limits, and manage everything in one place.  

Crucially, you don’t need to keep monitoring maturity dates and constantly scanning the market for replacements. The platform does the heavy lifting by letting you know when money is maturing and if better rates become available.  

As we approach the end of the tax year, it’s also worth remembering that you can open cash ISAs via the platform and transfer in existing ISAs, helping to consolidate what can otherwise become a patchwork quilt of accounts built up since ISAs were introduced back in 1999.  

For diligent savers who have used their allowance year after year, ISA pots can now run into very substantial sums – often spread across multiple providers. Bringing them together onto one platform can dramatically simplify your financial life.  

The bottom line

Inflation is falling. Base rate cuts are likely. Savings rates, for now, are holding up better than many expected, particularly for longer fixes. 

But the real risk isn’t whether you fix at 4.23% or 4.17%. 

It’s leaving your hard-earned cash earning next to nothing because moving it feels like too much effort. 

In a falling rate environment, inertia becomes even more expensive.  

Whether you take control yourself and open the best accounts directly, or use a cash platform to do the legwork for you, there has never been a better time to make sure your savings are working as hard as you do. 

For the best rates available, keep an eye on our Best Buy tables, which monitors the very best rates from the whole of the market. 

But if you are one of those people who are cash rich but time poor, take a look at how our Savers Hub could help you. Request a non-obligatory illustration today or request a demonstration of how the cash platform could help you with managing your savings effortlessly.  

Arrange your free initial consultation

Rates correct as at 27/02/2026.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

The UK inflation rate fell to 3% in the year to January 2026, according to the latest data from the Office for National Statistics (ONS), down from 3.4% in December 2025 and marking the lowest rate in ten months.

That said, although the rate of inflation has fallen significantly from December, it still remains above the Bank of England’s 2% target.

A fall was largely expected by economists, however the drop from December’s 3.4% rate was a little more than expected. As a result of this, the number of expected interest rate cuts this year has increased to more than the two expected, causing the stock markets to begin pricing in the change.

 Generally falling inflation figures are good news for the economy. A falling inflation rate paves the way for increased interest rate cuts, which in turn should be good news for rising equity markets, lower mortgages, and higher employment rates. And with unemployment at 5.2%, the highest level in nearly five years, interest rate cuts will hopefully be welcome to many searching for jobs. 

Why is inflation falling? 

According to ONS figures, meat, motor fuels and airfares all played a pivotal role in bringing down inflation since December, partially offset by the cost of hotel stays and takeaways, which rose.  

Another significant influence on inflation falling over the last 12 months, is that the VAT increase to school fees last year, has now dropped out of the figures. 

Food inflation fell from 4.5% to 3.6%, an encouraging change considering how sticky food prices have been in the past few years, and the lowest in nine months.

Easing transport costs were an additional contributor, with air fares reversing December’s spike and petrol prices dropping by 3.1p per litre between December 2025 and January 2026. According to ING THINK, the research and analysis division of ING Bank, inflation is expected to continue to fall this year, and actually get down to the 2% target by the summer, although the April figures will be the big test, as important measures such as energy costs are repriced in that month.

As a result, it’s expected that the next base rate cut will occur next month at the Bank of England meeting on 19th March 2026, with another in June.

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affects the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

 Our chartered financial advisers are expert and unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch. 

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This article is for information only and does not constitute individual advice. 

Figures obtained from HM Revenue and Customs (HMRC) from a freedom of information request revealed that nearly 80,000 junior ISA (JISA) accounts used their full allowance during the 2023/24 tax year, higher than the amount seen in the previous four years.

This change marked a 41% increase compared to 2020/21 and a 9% increase from 2022/23.

It is the highest level of maximum contributions (£9,000 per year) recorded since before the coronavirus pandemic struck and reveals thousands of parents and grandparents opting to use all tax wrappers at their disposal.  

A total of £1.8bn was subscribed to JISAs in 2023/2024, with only about 36% going into cash. Whereas, 80% of the JISAs that were maxed out in full, were in stocks and shares accounts. This suggests that the 18-year time horizon and potential for tax-free growth appeals more to those potentially looking to pass on their wealth during their lifetime to the next generation.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest.  

What is a Junior ISA (JISA)? 

A Junior ISA (JISA) works in much the same way as a standard ISA, but it’s designed specifically for children under the age of 18. Parents or legal guardians can open and manage the account on a child’s behalf, saving or investing money for their future in a tax-efficient way. A JISA can be a cash account or a stocks and shares account. Any interest, dividends, or capital growth earned within a JISA is completely tax-free, just like with adult ISAs.

There is a separate annual allowance for Junior ISAs of £9000 which does not eat into the £20,000 adult ISA limit. Once money is paid into a JISA, it belongs to the child and cannot be withdrawn until they turn 18, at which point the account automatically converts into an adult ISA and the young person gains full control. In short, a JISA is a long-term savings option aimed at giving children a financial head start.

If you want to find out more or you are looking to pass on wealth to your family, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help.  

Arrange your free initial consultation

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash or tax advice. 

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.

Just in time for Valentine’s Day, National Savings & Investments (NS&I) has confirmed that from 12 February 2026, the interest rates on its popular easy-access savings accounts will fall:

The Direct Saver rate will drop from 3.30% gross/AER to 3.05 per cent gross/AER.

The Income Bonds rate will fall from 3.26%/3.30% AER to 3.01%/3.05% AER.  

These reductions come on the back of the cuts made to the Guaranteed Growth and Guaranteed Income Bonds, announced last month and will be another blow to those loyal NS&I customers.  

This is the first change in these rates since March 2025, although the base rate has been cut a number of times from 4.50% in February 2025 to its current level of 3.75%. NS&I says it is adjusting its pricing in line with wider market conditions.  

However, when you compare the new rates with the best from the open market, you can earn far more, especially on a large balance.  

How do these new rates stack up against the best easy-access accounts?

While NS&I’s products remain competitive compared to the high street banks, in the context of the whole of the savings market they are looking far less attractive.

At the top of our easy-access best buy table sits the Chase Saver with the boosted rate, paying 4.50% AER variable for the first 12 months for new customers who open or have opened a Chase current account from 29 December 2025. This includes a 2.25% fixed boost for 12 months added on top of the standard variable rate.  

That is a sizeable step up from NS&I’s 3.05% but the catch is that it is for new customers only and you need to have a current account with Chase opened since December 2025.  

A strong competitor is the DF Capital Easy Access Account (Issue 7) paying 4.20% AER variable and the account offers unlimited withdrawals.

For those who need monthly interest, Shawbrook Bank’s Bonus Easy Access Savings Account Issue 5 is paying 4.13% AER/ 4.05% monthly.

To put those differences in context, here’s how much interest you’d earn in 12 months on a deposit of £120,000:

NS&I Direct Saver at 3.05%: £3,660 before tax is deducted

DF Capital Easy Access Account at 4.20%: £5,040 before tax is deducted

That’s over £1,300 more in gross interest with DF Capital in a year on the same sum of cash. The wider picture is clear: there are higher-paying alternatives currently available.  

A strong competitor is the Nottingham Building Society Bonus Access Saver paying 4.14% AER variable for the first 12 months, as this rate includes a 2.44% variable bonus until 30/4/2027. But the account offers unlimited withdrawals.

For those who need monthly interest, Shawbrook Bank’s Bonus Easy Access Savings Account Issue 5 is paying 4.13% AER/4.05% monthly.  

The Chase offer at 4.50% would produce £5,400 in gross interest over the year on the same £120,000, although as mentioned above, there are other hoops that need to be jumped through in order to be eligible for this account.

Why NS&I is still popular for many savers

Despite being less competitive on headline rates, NS&I remains extremely popular due to its unique protection proposition.

All money you hold with NS&I is 100 per cent guaranteed by HM Treasury, meaning the capital you put in is protected in full, regardless of how much. This is stronger cover than banks and building societies, where protection is through the Financial Services Compensation Scheme (FSCS).  

That said, from 1 December 2025, the FSCS protection limit was increased from £85,000 to £120,000 per person, per authorised institution. So, most people will have adequate protection in the unlikely event a bank or building society fails, as your deposits are protected up to that level by the FSCS.  

That is great protection for cash held across typical savings accounts, but for those with large cash balances above £120,000, NS&I’s stronger guarantee remains an important factor in deciding whether to keep all cash under one roof, or to distribute it across several providers.

What about cash platforms?

Another option for those with large cash holdings is a cash savings platform such as our Savers Hub provided by Insignis. These platforms let you spread savings across multiple banks and building societies from a single login, often with competitive interest rates.

It means you can keep more than £120,000 protected in multiple savings accounts without the hassle of managing a number of accounts yourself, and you can often find competitive rates that beat NS&I and many high street offerings.

So, what should savers do?

Here’s a simple rule of thumb:

If security is paramount and you have large sums over the FSCS threshold, NS&I is still worth considering because of the full government guarantee on higher amounts.  

But, if you want the best return on a large funds, whether that’s emergency fund easy access savings or longer term fixed rate options, look at top-paying options and consider spreading risk via a savings platform.

If you want to make your cash work harder, it is important to compare rates regularly and move money when better deals arise. In a market that is shifting and where relatively small rate differences can add up to hundreds of pounds over a year, staying informed is the best way to keep your savings working as hard as possible. Check our best buy tables for the most up to date savings rates. 

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Rates correct as at 09/02/2026.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

2026 has barely begun, yet savers are already being reminded that the interest rate landscape is shifting. Following the base rate cut on 18th December last year, we’ve started to see savings rates tumble. Not just variable rates, but fixed rates too. And last week, National Savings & Investments (NS&I) was one of those providers to announce reductions.  

The new issues of the British Savings Bonds, which is another name for NS&I’s fixed rate Guaranteed Growth and Guaranteed Income Bonds, are now on sale at lower rates than those available since November 2025 as the table below shows. 

British Savings Bonds are available to new customers and to existing customers whose Bonds are reaching maturity. Savers can invest from £500 up to £1 million per person in each Issue but must be prepared to lock their money away for the full term, as early withdrawals are not permitted. At maturity, savers can either take their money or reinvest into a new term.

While this news will undoubtedly disappoint savers who value the security of having their money with the state-owned bank, it’s no real surprise as it reflects both changes in the wider savings market and NS&I’s unique role within it.  

Why is NS&I making this move?

It’s important to remember that NS&I does not operate like a traditional bank or building society. NS&I’s purpose is to raise a specific amount of money for the Government each year. This is measured through its Net Financing target, which represents the net change in funds raised after taking account of inflows, withdrawals and interest/Premium Bond prize funds payments.

For the current year, the Net Financing target stands at £13 billion plus or minus £4 billion, an increase from the previous year from £12 billion, as confirmed in the November 2025 Budget. Managing inflows is a delicate balancing act, as if NS&I pays rates that are too competitive, it risks attracting more money than it needs and overshooting its target.

As best buy fixed term rates elsewhere in the market started to fall following the base rate cut in December, some of NS&I’s Guaranteed Growth and Guaranteed Income Bonds found their way into the top five best buy tables. This is unusual: NS&I rarely features so prominently because it normally avoids leading the market on price.

When NS&I products become too attractive, one of the simplest ways to manage demand is to reduce rates on new Issues. That is exactly what we have seen recently. Whilst disappointing for savers, the move is entirely consistent with NS&I’s remit and past behaviour – and in line with market sentiment as a whole.

What is happening in the rest of the market?

This move by NS&I is part of a broader trend across the savings market due to expectations for future interest rate cuts. The markets are pricing in further base rate reductions during 2026. Fixed rate savings products are priced based on interest rate expectations over the full term of the bond, not just current conditions, which means that changes in outlook can have an impact on rates.

As we start 2026, overall rates have started to drift downwards, although longer term rates have edged down by less.  

Over the last year, the average of the top five best 5-year rates has fallen by less than 0.20 per cent, while the average of the top five best 1-year rates has dropped by around 0.34 per cent. This reflects how providers price fixed term products. Short term rates react more quickly to changes in base rate expectations, while longer term pricing smooths those movements over time.

There have been a few notable exceptions to the downward trend, which is encouraging for savers. Marcus (from Goldman Sachs) has introduced a market leading 1-year bond paying 4.55% - the highest rate we’ve seen since October last year.  

And OakNorth, via the Prosper app, recently launched a 1-year bond paying 4.30 per cent, placing it firmly near the top of the tables. Shawbrook Bank has followed with a 1-year offering at 4.27 per cent. These moves show that competition has not disappeared entirely and that attractive rates can still be found by those prepared to look beyond the most familiar names.

Take a look at our Best Buy tables for the latest top rates on offer.

Why would savers stick with NS&I?

For existing NS&I customers who have already received their 30-day maturity letters, there is some reassurance. They will still receive the interest rate quoted in their letter if they act within the specified timeframe. For them and for everyone else, the decision about whether to invest with NS&I now depends on priorities rather than headline rates alone.

Savers should be clear about the trade-off. NS&I’s rates are no longer among the best available. For those willing to shop around, there are higher paying options available.  

There will of course always be savers who value the unique security that comes with NS&I, as well as the comfort of familiarity. All funds deposited with the state-owned bank are protected in full by HM Treasury, regardless of the amount. You can deposit up to £1 million into each issue of the British Savings Bonds. For those with larger cash sums, that reassurance can outweigh the lower rates.

But, if you do have more than the £120,000 Financial Services Protection Scheme (FSCS) limit, cash platforms are another valuable option. They allow you to manage savings across multiple banks with just one login, often making it easier to stay within protection limits and to switch between products when better rates become available. This can be especially useful for those with larger cash holdings who want both convenience and competitive returns.

For a no-obligation illustration, take a look at our cash platform, Savers Hub powered by Insignis.

With interest rates starting to fall, it's really important for savers to keep an eye on the rates they are earning, and to ditch and switch if they are not being paid a competitive rate. Keep an eye on our Best Buy tables to see the top rates available.

Arrange a free initial consultation

Rates correct as at 16/01/2026.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

Although it’s unusual to see a base rate cut in December, (in the last 50 years, it’s been cut in December just 12 times) I’m afraid on this occasion it was inevitable, especially when the latest inflation information was announced. Lower than expected inflation gave the Bank of England the ability to cut the base rate by 0.25%, although once again it was a close thing as the vote was 5-4 in favour with the Governor, Andrew Bailey, casting the deciding vote. Good news for borrowers, but not such great Christmas cheer for savers.

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The savings markets in 2025 have been shaped by shifting expectations for interest rates but with the base rate beginning the year at 4.75% and finishing 1% lower at 3.75%, the impact on savings rates has been clear to see. That said, sometimes fierce competition means that the falls have been more modest than they might have been.

As we approach the end of 2025, let’s take a look at how the key areas of the savings market have performed, and what’s still available for savers today.

Easy access savings

Bearing in mind the base rate had fallen to 4.75% by the beginning of 2025, from a high of 5.25%, the year began with easy access accounts still looking pretty respectable. Top payers in early January 2025 were paying as much as 4.85%, due to ongoing competition. And although the base rate was cut twice in the first half of the year, Chase Bank bucked the trend and introduced an easy access account paying 5% in June, putting a cat amongst the pigeons and keeping competition alive. But after another base rate cut in August, even Chase had to start reducing what it was offering. And as the year progressed and the market started pricing in lower base rate expectations, those headline easy-access rates have steadily softened. That said, at the time of writing, the very best easy access accounts are still paying up to 4.50% - still being driven by Chase!  

For savers who need and value immediate access, returns remain reasonable, although the very best deals are less generous than they were in January. For basic rate taxpayers, at the moment if you pay tax on the interest you earn, as long as you have your cash in an account paying 4% or more (before the deduction of tax) your interest will at least keep up with the rising cost of living.  

For higher and additional rate taxpayers it’s more of a challenge as you’d need to find an account paying 5.33% gross/AER and 5.81% gross/AER respectively.  

There are some providers that pay a little more, but for lower balances. Cahoot, for example is still paying 5% AER on its Sunny Day Saver, but only on balances of up to £3,000.  And Santander pays 6% AER on its Edge Saver Account on balances of up to £4,000, but you have to hold a Santander Edge Current Account, which comes with a monthly fee.

And of course, easy access accounts have variable rates, so can be cut at any time. The key here is to keep a close eye on what interest you are earning and switch if it becomes uncompetitive. That way you can mitigate at least some of the damaging effect of inflation.

Fixed-rate bonds

The top rates on fixed term bonds have also fallen by far less than the base rate over the last year, which indicates that there are still some good options to be considered before rates fall further.

What continues to be a trend is that the top long-term rates are lower than the top short-term rates, but the gap has narrowed: The drop in the top 5-year rate has been less than  0.20% over the year, from 4.50% to 4.31%, whilst the top 1-year rate has fallen from 4.79% to 4.46%.

This relative resilience makes sense when you think about how fixed products are priced: lenders hedge their duration and funding costs over the term of the product, so short-term shifts in base rate expectations don’t always translate into immediate dramatic rate cuts. But what it does indicate is that the base rate is likely to fall further in 2026 and possibly beyond.  

Whilst the top rates are lower than they have been in the recent past, the cuts have been considerably less than the base rate cut of 1% - so with more rate reductions expected, now could be a good time to lock up some of your cash – even for the longer term if you won’t need access to your money.

Check out our Best Buy tables for the latest rates

Easy access ISAs

Tax-free easy access ISAs began 2025 on a competitive note, with the top deals paying up to 5%. But the very best rates, both then and now were being offered by the ever more prolific digital money app providers, such as Moneybox, Plum and Trading 212.  

Although these providers have been around for a few years now, they had become a more prolific and dominant force in the market, which has been great news for those prepared to open and manage their ISAs via an app – and for keeping the competition alive.  

What is important to realise though is that these companies aren’t banks themselves, but they hold your cash with fully regulated UK banks, so your cash is protected by the Financial Services Compensation Scheme (FSCS), but it’s important to understand how that protection works. It’s the underlying bank’s licence that determines your protection, not the app you use. The FSCS protects up to £120,000 per person per bank licence, and this limit applies to all the cash you hold with that bank in total. That means you must add together any money you hold directly with the bank and any money you hold with it through different apps. Using multiple apps does not give you multiple £120,000 protections if they rely on the same underlying bank. Savers need to be aware of where their cash is actually held so they do not accidentally go over the FSCS limit with one bank.

Today, however, they are notably missing from the top five, taking a back seat for now, allowing other banks and more traditional building societies to appear. App only bank Atom is now in the top spot paying 4.25%, with the Principality Building Society in 2nd place with it’s Online Bonus 5 Access Cash ISA Issue 5 paying 4.20%. For those who would prefer a more traditional account without restricted access, Kent Reliance has an Easy access cash ISA – Issue 69, which is paying 4.16%. You can make as many withdrawals as you like and the account can be opened online or in branch if there’s one near you!

So, there’s plenty to choose from, and as the returns are tax free, at these levels the interest is paying more than inflation, so is keeping up with the cost of living.

Fixed-rate ISAs

With the recent Budget announcements that the annual cash ISA allowance will be cut to £12,000 for those under 65, and that the tax rate on savings interest will increase by 2% from April 2027, the value of a cash ISA is even clearer. Even with the lower allowance, using a cash ISA remains an effective way to protect your savings from tax.

So it’s great to see that the top ISA rates have remained pretty resilient throughout 2025, although inevitably have fallen a bit.

Once again, as with the fixed rate bonds, the fall in the top rates available are far less than base rate – but they may of course fall further following the latest news from the Bank of England.

And once again, the 5-year term rate has fallen by far less than the shorter-term rates – the top 5-year cash ISA available is now paying 4.14%, down from 4.18% at the beginning of 2025. Compare this to the fall of the top 1-year ISA rate from 4.53% in January, to the current level of 4.30%.

More importantly, the top fixed term ISA rates have fallen less than the equivalent fixed term bonds, so there has been a narrowing of the spread between fixed-rate ISAs and bonds, which suggests providers have been keen to keep those ISA wrappers competitive, even as base rate pressure mounted through the year.

Some people may think that cash ISAs do not offer the best value, as at first glance it looks like they pay a lower interest rate than the equivalent fixed rate bonds. But once you strip tax from the advertised rate, cash ISAs are offering far better value to those who pay income tax on their normal savings.  

For example, at the time of writing, the top 1-year fixed rate bond is paying 4.46% AER, whilst the top 1-year fixed rate cash ISA is paying 4.30% tax-free/AER. For those who don’t pay tax on their savings, the bond is clearly the winner as it would provide an extra £16 of gross interest for each £10,000 deposited.  

But if you are a taxpayer, you could earn more in the ISA. The rate on the bond would fall to 3.57% after basic rate tax has been deducted, so a basic rate taxpayer with a deposit of £20,000 would earn £860 in the cash ISA, but just £714 from the bond, if they have already used their Personal Savings Allowance. 

For savers who prioritise certainty and tax efficiency, the relative resilience of fixed rate ISAs has been one of the bright spots of 2025.

What’s next?

The lesson of 2025 is that savers who monitor the market closely and move quickly when attractive deals arise are likely to be the ones who benefit most.  

In their latest report the Bank of England stated, “We think that Bank Rate is likely to fall gradually further in future, but that will depend on whether variables like pay growth and services inflation continue to ease.”

So, we are likely to see more rate cuts, although hopefully not too many in 2026. This means that you should review your savings as soon as possible, and if you don’t need access to all your cash, perhaps it would make sense to lock into some of the rates that are currently available, to hedge against these future expected rate reductions. Rates may be drifting lower, but they haven’t disappeared - and there are still solid opportunities for those willing to look.

A platform such as Savers Hub, powered by Insignis, allows you to open, manage, and switch between a range of high-interest savings accounts through a single, secure log-in. This approach not only offers flexibility and control but also ensures that your cash remains easily accessible while working effectively for you.

Why not see how much you could be earning by requesting a free no obligation illustration today.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office.  

Accounts correct at 19/12/2025.

The Financial Conduct Authority (FCA) does not regulate cash flow planning,

The first Budget of my professional career was the 1988 Nigel Lawson “Giveaway” Budget. As an office junior, my job was to head into the city and queue up (with dozens of other fresh faced office juniors) to receive the printed full Budget from the Government’s press offices. I dutifully returned to work, clutching it in my sweaty palms, so that the senior advisers could pore over it. No internet, no leaks, just a bundle of white pages hastily stapled together.

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Since that March day (it always used to be in the Spring) Budgets have come and gone but they all have one thing in common. Namely, the fear and rumour that ferments in the days and weeks beforehand. I have to say that the media are one of the major guilty parties and, more than ever, are responsible for whipping up a frenzy of bitterness and resentment, even before the Chancellor, whoever they happen to be, has stepped up to the dispatch box.

I don’t think I’m wrong in saying that I’ve never witnessed quite so much ‘bracing’ in fear and anticipation as this Budget. The nation became paralysed in apocalyptic fear as if the end of the world were approaching.

So, I thought it was time to take stock and look at the Budget in the clear light of day and also in the context of historical Budgets.

The fear and rumour mill

Ever since that dreary March day in 1988, I can say that one fear has pervaded every single Budget. Namely, the fear that higher rate tax relief will be removed from pension contributions. This Budget was, of course, no exception and the fear spread even further than that. About sometime in September this year, a rumour started (I don’t know from where) that tax free cash (now technically known as the Pension Commencement Lump Sum, or PCLS) would be reduced from £268,275 to £40,000. Personally, I thought it was unlikely and wasn’t afraid to say so. Not only would it not result in higher tax take for the Treasury (who in their right mind would now willingly withdraw £286,275, subjecting themselves to income tax on £246,275?) but it would also have made Rachel and Labour, even more unpopular than they are already.

Nevertheless, a huge number of people acted and withdrew their tax free cash and are now sitting on it in a taxable environment.

But pensions were definitely going to take a bullet somehow. After all, they are still highly efficient methods of saving, something which seems to have been lost on some of the general public, based on a tsunami of negative press, again, which doesn’t always help. Animal Farm springs to mind when the animals, having taking over the farm, come up with the tenets of animal life. “Four legs good, two legs bad”. And so, the media has a similar chant “non pensions good, pensions bad”. But are they? If I were to tell you that you could invest in a pension and get 41.6% tax free cash from it, would you be interested? If you are a higher rate taxpayer, this is exactly what you get! For every £100 put in, you only pay £60 (20% tax relief at source and a further 20% back in your tax returns). So, tax free cash at 25% means 25% of £60 which equals 41.6%. When you retire, if you’re a basic rate taxpayer, you are only paying 20% on the £75 whenever you draw on it. By the way, if you make pension contributions and your earnings are between £100,000 and £125,140, because this income reduces your personal allowance, the equivalent tax relief is not 40%, it is 60% so the effective tax free cash rate is a whopping 62.5%.

Given how generous tax relief is, I think that the slight knock pensions took (future reductions in salary sacrifice) is really getting away with it.

The hammer blow came last year

Of course, last year’s Budget delivered a hammerblow to pensions in that, from April 2027, Inheritance Tax (IHT) will apply. For ten years, since George Osborne announced pensions ‘freedom’ many have earmarked their pension funds for Estate Planning purposes, since so this recent news was very unwelcome. In effect, this now puts pensions in roughly the same position as they were before 2015. Before 1995, remember, people were forced to buy annuities with their pension funds so, in spite of goal post moving, pensions are still the best tax planning vehicles around, so let’s not throw the baby out with the bath water.

Overall, it has to be said that the Budget was probably a slight relief. Many, myself included, had expected increases in Capital Gains Tax and even Income Tax and none of these came to pass. Instead, we saw a continued freezing of allowances. Stealth taxes. The death of wealth by a thousand cuts. Each one painless, but in five years’ time, we’re all significantly worse off without immediately feeling the pain. 

Stealth taxes are at the heart of the Budget

There were a few other ‘tampering's’ such as the reduction in cash ISA contributions from £20,000 to £12,000 for under 65s, and an increase to the tax rate on savings interest, both from April 2027, but this is mostly tinkering around the edges and irritants for some, at worst. There was an innovation in the introduction of ‘Mansion tax’ for houses worth over £2m but, again, this was kicked into the future and will not apply until 2028. But the stealth taxes, freezing of allowances, are at the heart of this budget.

I sometimes think of the 1988 “giveaway” Budget with fondness. Lawson reduced higher rate income tax from 60% to 40% and basic rate from 27% to 25%. All of this was possible due to the fact that the economy had been overheating (remember that?) but was now under control and the predicted Budget surplus allowed for such cuts. What luxury! There was uproar in the house and the Speaker had to suspend proceedings due to “grave disorder”. A lesser known MP called Alex Salmond exclaimed that it was an “obscenity” and was duly suspended for breaching Parliamentary convention.

The world has changed though, and the UK doesn’t have the room for manoeuvre afforded by those halcyon days. Nigel Lawson didn’t have the fallout of QE, Brexit, Covid and the Ukraine invasion to hamper him and I doubt if any modern day Chancellor from any persuasion would make us all happy, given the state of the economy. The only one who tried, and failed, was Kwasi Kwarteng who, in cahoots with Liz Truss, grabbed the Treasury money bag and started running down Whitehall throwing £20 notes in the air before being rugby tackled by the bond markets. I sadly, don’t expect too much from any Chancellor, from whichever party, over the next few years at least.

On the plus side, bond markets (the ultimate bellwether of economic prudence) have reacted well to the Budget. Gone are the days when a Labour Government would react to fiscal shortfall by applying for a payday loan!

So, in the final analysis, maybe the 2025 Budget was a bit of a non-event. But fear and loathing were the lasting memories of the days leading up to it, which probably explains why the UK economy reported a contraction in October. Meanwhile, back at Animal Farm, I’d like to paraphrase another animal tenet. “All Budgets are equal, but some are more equal than others”.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice. 

UK inflation dropped more than expected in November to reach an eight-month low of 3.2%. Inflation, measured by the consumer prices index (CPI), fell to an annual rate of 3.2% in November, from 3.6% in October, according to the Office for National Statistics (ONS). The figure was below the 3.5% forecast from analysts surveyed by Reuters and marked a notable decline month on month.  

According to the ONS, the fall in inflation was driven by lower prices for food, drink and clothing. 

The unexpected drop only adds more weight to the argument for the Bank of England to lower interest rates on Thursday, 18th of December in an effort to support the economy.  

Bank of England governor Andrew Bailey has indicated he would back another quarter-point cut to 3.75% at this week’s Monetary Policy Committee meeting, provided official data continues to point to a slowdown in inflation. 

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affects the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace. 

Our chartered advisers are unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch.

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This article is for information only and does not constitute individual advice.