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International Business Times UK
International Business Times UK
Business
Dani Oh

Britain Has 5% Savings Rates Yet Millions of UK Savers Are Still Leaving Their Cash To Earn Just 1.65%

United Kingdom Inflation Bank of England
The gap between competitive savings deals and the average rate paid on existing sight deposits is widening as inflation remains elevated (Credit: Joshua Hoehne/Unsplash)

British savers can currently find some accounts paying around 5%, comfortably above the latest inflation rate. Yet the Bank of England says the effective rate on the existing stock of individuals' sight deposits was just 1.65% in July 2026.

That rate covers money already sitting in sight deposits, including current and easy-access accounts, rather than a single savings product offered to every customer. New time deposits paid an average 4.21% in July 2026, highlighting the wide gap between existing balances and newly opened accounts.

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