Bank Rate and savings: what advisers should tell clients

Every time the Bank of England announces a rate decision, some clients ring with the same questions. Will my savings rate go up? Should I fix now before it falls? Is my money in the right place? The honest answer usually starts with something clients do not expect: a change in Bank Rate does not automatically change what their own account pays, and nobody can reliably tell them what happens next.

This guide explains how Bank Rate and savings are connected, what the FCA found about how changes pass through to savers, and how advisers can talk to clients about rates in a way that is useful and defensible, without making predictions.

How Bank Rate is set

Bank Rate is set by the Bank of England's Monetary Policy Committee (MPC). The Bank says the MPC "meets eight times a year" to decide what level of Bank Rate is needed to return inflation to, or keep it at, the 2% target over time (Bank of England).

The recent position, as published by the Bank of England at the time of writing (October 2026):

Upcoming dates are published on the Bank's MPC dates page. Putting them in the firm's calendar is a simple way to plan client communications around decisions, whichever way they go.

How changes in Bank Rate pass through to savings

Bank Rate influences the rates banks and building societies offer, but each provider sets its own rates on its own timetable. Some products move quickly after a change, some slowly, and some hardly at all. Fixed rate products do not change during the term, whatever happens to Bank Rate.

What the FCA found

The FCA looked closely at this. In its cash savings action plan (31 July 2023), it found that nine large providers passed on 28% of base rate rises to easy access deposits between January 2022 and May 2023, against 51% for notice and fixed accounts. It asked firms to "prompt their customers in lower paying savings accounts or non-interest bearing accounts to consider alternatives" (FCA cash savings action plan).

In its update of 18 September 2024, the FCA reported an average easy access rate of 2.11% in June 2024 and said "the largest firms continue to pay below average for easy access products" (FCA update, September 2024). That figure is a snapshot of June 2024, not a guide to rates today.

What this means for clients

• Rises may not arrive in full. The FCA's findings show that, in that period, easy access savers at large providers received a smaller share of rises than notice and fixed savers.
• Staying put has a cost. A client whose account has not kept up may be earning less than they could elsewhere, without any change on their statement to tell them so.
• Some money pays nothing. AJ Bell, using Bank of England Bankstats, reported almost "£306 billion" in accounts paying no interest (AJ Bell, September 2026).

We are not able to say how providers have passed on more recent changes: the FCA cash data in our sources runs to September 2024. The practical lesson stands either way. Check what the client's account actually pays, not what Bank Rate is.

What to tell clients, and what not to

Clients often want a view on where rates are heading. Giving one is tempting, and risky. A recommendation built on a forecast is hard to defend if the forecast is wrong, and it shifts the conversation away from what the money is for.

Helpful things to say

• "Bank Rate is currently 3.75%. The next decision is on 5 November 2026. Nobody can know in advance what it will be."
• "A change in Bank Rate does not change your account automatically. What matters is what your account pays and whether it suits what the money is for."
• "If you need this money soon, flexibility matters more than chasing a rate. If you will not need it for a while, rate certainty may matter more to you."
• "We will look at this again at your review, or sooner if your plans change."

Things to avoid

• Saying rates will rise, fall or stay put.
• Urging a client to fix or not to fix because of an expected move.
• Quoting a product rate in a general letter or email; it may be out of date by the time the client reads it.

This fits the Consumer Duty's consumer understanding outcome. PRIN 2A.5.3R requires communications that "equip retail customers to make decisions that are effective, timely and properly informed" (PRIN 2A.5). A plain explanation of how rates work, with no false certainty, does exactly that.

Using rate decisions as a prompt

Each MPC decision is a natural moment to check that client cash is still doing its job. That does not mean contacting every client every time. A proportionate approach:

1. Know which clients hold significant cash, from the last review or fact find.
2. After a decision, send a short general note explaining the decision in plain terms and inviting clients to get in touch. No rates, no forecasts.
3. Prioritise clients most affected: large easy access balances, accounts with bonus rates ending, and fixed terms maturing soon.
4. Where a client wants to act, make a proper recommendation: compare the market on the day, consider their priorities and the FSCS position, and date the report.
5. Record contact and outcomes, including where a client chose not to change anything.

Our guide to cash savings advice for advisers sets out a full process for evidencing a recommendation.

Dating every recommendation

Because rates move, a cash recommendation is only as good as the date of the data behind it. A report should say when rates, terms and FSCS status were checked, so the client and anyone reviewing the file can see whether it is still current. If a client takes weeks to decide, or an MPC decision falls in between, check the comparison again before they act.

The FSCS position should be checked at the same time. The limit is "up to £120,000 per eligible person, per bank, building society or credit union", and brands sharing a banking licence count as one bank (FSCS). See our guide to the FSCS limit of £120,000.

Reckoner is built around this. It checks rates, terms and FSCS status against the live market as the recommendation is built, and every report carries the date its market data is current to. A history of every comparison makes it easy to see when a recommendation needs refreshing.

Frequently asked questions

Does a change in Bank Rate change my clients' savings rates?

Not automatically. Each provider sets its own rates. The FCA found that between January 2022 and May 2023, nine large providers passed on 28% of base rate rises to easy access deposits, against 51% for notice and fixed accounts. Fixed rates do not change during the term.

How often is Bank Rate reviewed?

The Bank of England's Monetary Policy Committee meets eight times a year. The next decisions are due on 5 November 2026 and 17 December 2026.

Should advisers tell clients where rates are heading?

We would not. Explain the current position and the next decision date, focus on what the money is for, and make dated recommendations that can be refreshed when rates move.

See how Reckoner dates every recommendation to its market data, or book a twenty-minute demo on Microsoft Teams with Adam Booth, run live on a demo firm with nothing to prepare.