In recent months, the inflation rate in the UK has continued to decrease and stood at 2.8% as of February 2025. The Bank of England’s target inflation rate of 2% is therefore becoming increasingly attainable. In August 2024, the Bank of England cut the base rate for the first time since the start of the rate-hiking cycle, and after further reductions, the key interest rate was set at 4.5% in February 2025, where it has remained since then (as of April 2025). The regular interest rate increases in previous years had a positive impact on savings accounts, but with the recent rate cuts, savings rates have started to decline again, although they still remain attractive. It may be worthwhile to look beyond the UK’s borders: in some countries, fixed-rate savings interest rates can be higher than in the UK. With our partner banks, you can receive attractive interest rates for fixed-rate savings abroad – even for short terms.