Savings Account Interest Rates - 2003 onwards

Interest Rates on Savings Accounts since 1960

Year Annual Average
 
20141.48
20131.75
20122.80
20112.75
20102.80
20092.21
20085.09
20075.55
20064.68
20054.92
20044.56
20033.73
20024.00
20014.31
20005.00
19995.17
19985.75
19975.17
19964.54
19955.60
19945.36
19935.66
19928.19
199110.57
199013.56
198911.96
19889.30
19879.83
19869.22
19857.57
19847.00
19836.75
19828.54
19818.90
198010.50
19798.31
19786.25
19777.00
19766.88
19757.21
19747.50
19736.58
19724.88
19715.00
19705.00
19694.88
19684.17
19674.25
19664.00
19653.88
19643.50
19633.56
19623.75
19613.56
19603.38

Interest rates shown are gross.
Prior to November 1984 the rates are an average of monthly rates for a building society share account. They reflect the rates recommended by the Council of the Building Societies Association.
From 1984 to 1996 they are 'predominant and average rates' as collected by the Building Societies Association.
From 1997 to 2000 they are savings rates (balance 1-10,000) for certain retail banks as collected by the Office for National Statistics.
From 2001 to 2008 they are average annual rate for instant-access internet savings-account of selected retail banks: Halifax and Nationwide.
Early in 2009 banks and building societies cut rates on their instant-access internet accounts to 0.1% or 0.2%. They launched new instant-access internet accounts with rates of about 2.2% provided number-of-withdrawls restrictions were met. So for 2009 to 2011 the rate shown is cash ISA (1,000+) from Nationwide; and for 2012/2013, online ISA from Nationwide.
Rates rose to 3.1% in first half of 2012 but fell back to 2.2% by the end of the year after the Bank of England Help-to-Buy scheme meant less competition for savings. This gave an average of 2.8% for 2012.
In the second-half of 2013 rates fell further to 1.5% giving an average for 2013 of 1.75%.
After rates stayed at 1.5% through most of 2014, it was hard to believe they fell again in late September to 1.4% giving an average for the year of 1.48%.
The 1.4% is GE Capital Direct ISA Issue 4 which is variable rate and allows ISA-transfers-in, internet-only.
Post Office Premier Cash ISA also allows transfers-in, 1.5% including bonus 0.75% for 18 months, telephone, post, branch not internet.
Isa-transfer-in and easy-access requirements used in these pages arise from Banks and Building Societies using cash ISA's to attract new customers using limited-period-bonus-rates.
So the rates shown here tend to be lower than some new accounts and longer-term-fixed-rate-accounts.

Thanks to John Ndege of www.pocketrisk.com for highlighting the quarterly interest rate averages published by the Building Societies Association which are now used for 1986-Q2 thru 1996-Q4 (June 2013).

Last updated 28 December 2014
Sources: 'Annual Abstract of Statistics' 2000 edition. Office for National Statistics.
'Building Societies Association Yearbook 2011-2012' from www.bsa.org.uk.