Save your savings: how to engage with the savings market as interest rates change

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Many UK savers still hold cash in accounts that pay little or no interest, even when higher-paying Financial Services Compensation Scheme (FSCS)-protected options are available elsewhere. This is often not a deliberate decision. Interest rates change, savings accounts vary between providers, and managing multiple accounts across services can feel time-consuming.

Engaging with the savings market doesn’t mean you have to predict interest rate movements or frequently switch banks. It starts with understanding how different savings accounts work, how they respond as rates change and how access to those accounts can be simplified.

This guide explains why many savers remain in low-interest accounts and what to consider when reviewing savings as interest rates move.

Why many savers remain in low-interest accounts

Despite regular media coverage of interest rate changes, many savers remain with accounts that no longer reflect higher rates available elsewhere. Familiarity with a main bank, uncertainty around alternative providers and the admin involved in opening and managing multiple accounts are common reasons.

These factors can make it harder to review savings regularly, particularly when rates change or promotional periods end.

How savings platforms fit into the market

Savings platforms aim to reduce this friction by bringing accounts from multiple banks together in one place.

Rather than applying to each provider individually, savers can compare and open savings accounts from a range of banks and building societies through a single platform. Rates and key terms are displayed side by side, making it easier to review options over time and manage savings more efficiently.

How Raisin UK works

Raisin UK operates as a savings marketplace rather than a bank. After completing a single online application, customers can access easy access savings accounts, notice accounts and fixed rate bonds from a range of partner banks and building societies.

Key features include:

• Access to savings accounts from over 40 banks and building societies through one login
• FSCS protection of eligible deposits up to £120,000 per person, per banking licence
• No platform fees, as Raisin UK is paid by its partner banks
• Centralised account management, reducing administration

Easy access, notice accounts and fixed rate bonds

Different savings accounts serve different purposes.

Easy access accounts offer flexibility for money that may be needed at short notice and pay a variable rate. Notice accounts require advance notice before withdrawals and also pay variable rates. Fixed rate bonds offer a fixed return in exchange for locking funds away for a set period.

Some savers use a combination of account types, keeping part of their savings accessible while placing other funds in notice accounts or fixed rate bonds. Viewing accounts together can make it easier to understand how savings are allocated.

How savings accounts respond when interest rates change

Interest rate changes do not affect all savings accounts in the same way. Easy access rates often adjust more quickly, while notice accounts and fixed rate bonds tend to reflect longer-term expectations. Rather than forecasting future movements, many savers focus on how their savings are structured and how easily they can review or move funds as conditions change. When rates rise, banks may compete more actively for deposits through notice accounts and fixed rate bonds. When rates fall, notice and fixed-term accounts may allow savers to secure a known rate for money not needed immediately.

Understanding FSCS protection across multiple banks

FSCS protection applies per person, per banking licence, not per account. Eligible deposits of up to £120,000 are protected with each banking licence.

When savings are spread across more than one bank, understanding which licence applies to each account can help savers see how protection works in practice.

Looking beyond the headline rate

Interest rates are important, but they are not the only factor to consider when comparing savings accounts. Other considerations include access restrictions, notice periods, early withdrawal terms, how interest is paid and which banking licence provides FSCS protection.

Independent comparison sites and educational resources can help put these features into context.