Millions of savers across the UK are set to see the returns on their hard-earned cash diminish, as four of the country's biggest high street banks prepare to cut interest rates on a range of accounts over the next two weeks.
Which Banks Are Cutting Rates and When?
The wave of reductions follows the Bank of England's decision in December to lower the base rate from 4 per cent to 3.75 per cent. Personal finance website Finder, which has been tracking the changes, is urging customers to review their arrangements immediately.
Santander is first to move, trimming rates from Wednesday, 14 January 2026. Its 'Good for Life ISA' will fall from 4.00% to 3.75%, while the 'Rate for Life' account drops from 4.25% to 4.00%.
On Monday, 19 January, a suite of accounts at NatWest and RBS will be reduced by up to 0.25 per cent. Notable cuts include the NatWest Digital Regular Saver (for up to £5,000) falling from 5.50% to 5.25%, and the Flexible Saver for balances between £1 and £24,999 dropping from 1.06% to just 1.00%.
Barclays will follow suit on Wednesday, 28 January. The rate on its 'Reward Saver' account will be cut from 2.10% to 1.85%, and the 'Blue Rewards Saver' will decrease from 2.75% to 2.51%.
The Stark Reality for Savers
Kate Steere, a personal finance expert at Finder, highlighted the dramatic impact these changes can have. "The gap between the best and worst savings rates on the market is striking," she said.
Using the average UK savings pot of £16,067 as an example, Ms Steere explained: "If you were earning the new NatWest or RBS rate of 1.00 per cent AER... you'd get just £160 in interest over the course of the year. 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."
Time for a 'New Year Reset'
With analysts not predicting further imminent changes to the base rate, experts say now is a crucial moment for savers to act. The next Bank of England base rate review is scheduled for 5 February 2026.
Ms Steere advised: "Now is the time to give your savings a new year reset and find yourself a rewarding rate." She also pointed out that the 2026/2027 tax year is the last before the Cash ISA allowance is reduced to £12,000, making it a good time to consider fixed-rate options.
"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," she added, noting that Investec is currently offering 4.12% AER for a one-year fix.
