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UK Banks Begin Lowering Savings Rates Following BoE Base Rate Cut

Major banks have announced interest rate reductions on savings accounts, with changes rolling out from late May through July in response to the Bank of England's recent base rate cut to 4.25%.

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Overview

  • The Bank of England reduced its base rate from 4.5% to 4.25% on May 19, 2025, triggering widespread cuts to savings account interest rates by major UK banks.
  • NatWest, Nationwide, HSBC, Lloyds Bank, Monzo, and Moneybox have all announced schedules for rate reductions, with changes taking effect between late May and July 2025.
  • NatWest will implement cuts to nine savings products, starting May 30 for some accounts and July 15 for others, including its Digital Regular Saver and Flexible Saver accounts.
  • HSBC plans to reduce rates on eight of its savings accounts, with changes effective from June 3 and July 21, impacting products like the Online Bonus Saver and Loyalty Cash ISA.
  • Financial experts advise savers to consider locking in fixed-rate savings accounts now, as further base rate cuts are anticipated later in the year.