Savers can currently earn up to 5% AER on fixed-term accounts, with rates reaching a two-year high. This follows several providers launching new deals in recent weeks, including National Savings & Investments (NS&I) which has increased returns on its fixed bonds.
As of 5 August 2026, analysis of Moneyfacts data shows the top rate for a one-year fixed-term account is 4.91% AER. However, rates can reach up to 5% for those willing to lock their money away for longer than 12 months. Cash ISA rates are also elevated, with 4.66% available for a one-year fix and 4.85% for the leading five-year account.
The rise in rates is partly attributed to the Bank of England holding the base rate at 3.75% since December 2025. Providers may also be anticipating that the conflict in the Middle East could lead to inflation and further rate increases later this year, prompting them to improve savings deals now. Competition among newer banks aiming to meet funding targets is also believed to be a significant factor.