Variable savings rates rebound in December as fixed rates suffer

Average notice savings rates increased month-on-month for the first time in over a year.

It was a mixed picture for the savings and ISA markets as we approach the end of 2025, with most average variable rates increasing between the start of November and the start of December while average fixed rates declined.

Perhaps most notably, the average notice savings rate rose from 3.46% to 3.48% in the month to December, according to data from the latest Moneyfacts UK Savings Trends Treasury Report. This was its first monthly increase since August 2024.

Meanwhile, the average easy access savings rate edged higher from 2.51% to 2.52% over the same period, and the average easy access ISA rate increased from 2.69% to 2.71%.

“Variable rates showed some renewed strength month-on-month, with all, excluding notice ISAs, rising across the board,” Caitlyn Eastell, Spokesperson at Moneyfacts, commented on the latest savings news. This is despite the Bank of England base rate remaining unchanged since August, until it was cut to 3.75% on 18 December 2025.

However, despite this small resurgence in variable rates in the lead up to December, it seems likely that they will resume their overall downwards trend after this most recent base rate reduction.

Fixed rates decline

While variable savings rates rose in December 2025, fixed savings and ISA rates continued to decline. For example, the average one-year fixed bond fell by 0.03 percentage points to 3.92% in the month to December, with the average rate on longer-term fixed bonds (those with terms of 550 days or more) falling to 3.84%, its lowest point since November 2022.

Fixed ISAs also edged lower between November and December, as the average one-year fixed ISA dropped from 3.89% to 3.85% and the average longer-term ISA fell from 3.82% to 3.79%.

Why are fixed savings rates falling?

“Fixed rates have continued a downward trend,” Eastell explained.

“These have been mostly impacted by falling swap rates as markets calm and the future of interest rates becomes more predictable. It would not be wholly surprising if in the coming months the top rates start dropping below the 4% benchmark,” she continued.

Near record-high number of accounts to choose from

Even though savers may feel pessimistic about the prospect of lower savings rates, it’s still worth being proactive about reviewing your accounts and switching providers to ensure you’re maximising the return on your money.

And, with the number of savings and ISAs on the market rising to 2,319, savers aren’t short of options if they want to move to a different provider.

“After a brief slump, product numbers have recovered and have reached their second highest count on record,” Eastell commented.

Within this, the number of savings accounts (excluding ISAs) is now at its highest level since April 2012 while the number of ISA providers increased to a record high of 101.

However, despite this competition in the market, Eastell warns that “a dwindling number [of accounts] are able to match base rate”.

What this means for savers

If savers can afford to put away their money for a number of months or years, a fixed account ensures you will receive a guaranteed return on your savings, regardless of what happens to interest rates.

Variable accounts are more suitable if you want the option to access your savings but, as providers can change the interest rate at short notice, it’s crucial to check if you’re receiving a competitive return, particularly after any base rate cuts.

Regardless of your savings goals, taking time to regularly review the market and your existing accounts could make a significant difference and help you to maximise your money.

Discover the latest savings rates

Our savings and ISA charts are updated throughout the day to show the latest rates available. Compare accounts and see if you could be getting a better return on your money.