The recent decision by the Bank of England to reduce the base rate from 4 percent to 3.75 percent will lead to significant changes in savings rates at several major banks. According to personal finance website Finder, four prominent high street banks will cut their savings rates in the coming weeks, prompting savers to reassess their banking arrangements.
From January 14, 2026, Santander will decrease the rates on its ‘Good for Life ISA’ and ‘Rate for Life’ accounts by 0.25 percent. This change reflects the broader trend following the Bank of England’s base rate adjustment. The following week, on January 19, 2026, both NatWest and Royal Bank of Scotland (RBS) will also reduce rates on several accounts by up to 0.25 percent.
The situation for Barclays customers is similarly concerning. Starting January 26, 2026, the bank plans to lower the rate on its ‘Reward Saver’ account from 2.10 percent to 1.85 percent, while its ‘Blue Rewards Saver’ will see a drop from 2.75 percent to 2.51 percent.
As the savings landscape shifts, Finder’s experts have compiled a detailed list of the upcoming rate changes for various accounts. The next review of the base rate is anticipated on February 5, 2026, according to reports from the Daily Record.
The following are the scheduled rate reductions:
– **Santander Good for Life ISA**: January 14
– From 4.00% to 3.75%
– **Santander Rate for Life**: January 14
– From 4.25% to 4.00%
– **NatWest Digital Regular Saver (up to £5,000)**: January 19
– From 5.50% to 5.25%
– **NatWest Flexible Saver (£1 – £24,999)**: January 19
– From 1.06% to 1.00%
– **NatWest Savings Builder (up to £10,000)**: January 19
– From 1.50% to 1.25%
– **NatWest Help to Buy ISA**: January 19
– From 1.85% to 1.60%
– **RBS Digital Regular Saver (over £5,000)**: January 19
– From 5.50% to 5.25%
– **RBS Flexible Saver (£1 – £24,999)**: January 19
– From 1.06% to 1.00%
– **RBS Savings Builder (over £10,000)**: January 19
– From 1.50% to 1.25%
– **Barclays Reward Saver**: January 26
– From 2.10% to 1.85%
– **Barclays Blue Rewards Saver**: January 26
– From 2.75% to 2.51%
Kate Steere, a personal finance expert at Finder, noted the significant gap between the best and worst savings rates currently available. She explained, “If you were earning the new NatWest or RBS rate of 1.00 percent AER with the average savings amount of £16,067, you’d only earn around £160 in interest over the year.”
In contrast, Steere highlighted that a top market rate, such as Chase’s 4.5 percent, could yield approximately £720 in interest for the same savings amount. “The real impact of where you put your money becomes clear,” she stated.
Steere also encouraged savers to consider their options, noting that analysts do not predict further changes to the base rate soon. “Now is the time to give your savings a new year reset and find a rewarding rate,” she advised. Additionally, she pointed out that 2026/2027 will be the final tax year before the Cash ISA limit decreases to £12,000, making it a strategic time to explore fixed-rate ISAs. Currently, Investec offers a competitive 4.12 percent AER for a one-year fixed account.
As banks adjust their savings rates, individuals are encouraged to stay informed and consider their options carefully to maximize their savings in this evolving financial landscape.
