Revolut and JP Morgan drive UK savings rates to six-year highs
A surge of high-yield savings products from fintechs and Wall Street banks has pushed the number of UK accounts beating the central bank rate to a six-year high, signalling an aggressive battle for retail deposits.
The number of UK savings accounts paying above the Bank of England’s 3.75% base rate has hit 1,385, the highest level in over six years. According to financial data provider Moneyfacts, these top-yielding accounts now make up more than half of the total market. The shift marks a fierce escalation in the competition for retail liquidity.
The rate spike is being driven by digital banks and Wall Street giants using temporary bonuses to capture market share. Revolut recently launched a 5% instant-access rate for new UK customers, applicable on balances up to £25,000 until 4 December. JP Morgan’s Chase is offering 4.5% on its easy-access account, though this includes a 2.25% bonus that expires after 12 months.
Institutional players are also competing aggressively on fixed-term liabilities. The average one-year fixed bond rate rose to 4.22% this month, its highest point since November 2024. Marcus by Goldman Sachs currently leads this segment with a 4.9% one-year fixed bond for deposits up to £250,000, narrowly beating Atom Bank’s 4.8% offering.
Legacy high-street banks are taking a different approach, relying on regular savings accounts to retain balance sheets without offering high rates on lump sums. Lloyds, Halifax, and Bank of Scotland now offer 8% on monthly deposits of £25 to £250. Santander matches this 8% rate for deposits up to £200 a month, though these products require linked current accounts and restrict withdrawals for 12 months.
The broader easy-access market remains far lower, with the average non-Isa account yielding just 2.53%. Furthermore, the headline rates carry tax implications that investors must navigate. Returns outside of Isas are subject to tax once they breach the £1,000 personal savings allowance for basic-rate taxpayers, or £500 for higher-rate payers.
“Things are looking promising – the choice is really good, but it’s all about being proactive and switching, and making the most of these products while they are there,” says Rachel Springall at Moneyfacts.
