Compare your savings rate to the Bank of England base rate and find out if you're paying a loyalty penalty.
Compare your savings rate against the Bank of England base rate (3.75% as of 17 March 2026).
A fair savings rate should broadly track the Bank of England base rate. For easy-access savings accounts, the best deals typically offer within 0.25% of the base rate, and sometimes more.
If your savings rate is more than 1% below the base rate, you're likely a victim of the "loyalty penalty" -- where banks rely on customer inertia to pay lower rates to existing customers while offering better deals to attract new ones.
The FCA's Consumer Duty rules (introduced July 2023) require banks to provide fair value. This means banks should not be offering rates that are unreasonably below the market rate, particularly on easy-access savings accounts.
Rule of thumb: If your easy-access rate is below 2.75% (base rate minus 1%), you should seriously consider switching to a better account.
The base rate directly influences what banks pay on savings accounts. Track how it has changed over time.
The base rate is the interest rate set by the Bank of England's Monetary Policy Committee (MPC). It influences the rates that banks and building societies offer on savings accounts, mortgages, and loans. When the base rate goes up, savings rates generally follow -- though not always immediately or by the full amount.
Many banks pay well below the base rate on easy-access savings, especially to long-standing customers. This is known as the 'loyalty penalty'. Banks often reserve their best rates for new customers or fixed-term accounts. Variable rate accounts are particularly prone to gradual rate cuts that go unnoticed.
You can contact your bank directly and reference the FCA Consumer Duty rules, which require them to provide fair value. Ask them to justify why your rate is significantly below the base rate. If you're not satisfied with their response, you can escalate to the Financial Ombudsman Service (FOS). However, the quickest solution is usually to simply switch to a better-paying account.
Consumer Duty is a set of FCA rules (effective July 2023) requiring financial firms to deliver good outcomes for retail customers. It includes a 'fair value' requirement -- firms must ensure the price customers pay is reasonable relative to the benefits. For savings accounts, this means banks shouldn't be paying unreasonably low rates, especially on easy-access accounts where customers can move their money freely.
StoozeMax helps you track your savings rates, monitor for rate cuts, and find better deals. Never miss a rate drop again.
Get started free