Maximising Your Savings Returns in a Rising UK Interest Rate Environment

As the UK sees a shift in the economic climate with rising interest rates, savers can finally breathe a sigh of relief. After years of historically low rates, the prospect of better returns on savings is on the horizon. But how can you best position yourself to take advantage of these changing times? Let’s dive into some top strategies to get the most from your savings.

1. Keep an Eye on the Bank of England

Firstly, it’s vital to stay informed. Monitor the Bank of England’s announcements closely. Understanding the trajectory of interest rate changes can give you a predictive edge on where best to place your savings.

2. Diversify Across Account Types

Not all savings accounts are made equal, especially in a rising rate environment:

– Easy Access Accounts: Useful for funds you may need in the short term. They usually offer variable rates, which means the rate can go up in line with general interest rate rises. You can register to Upscore and find the best providers that can maximise your returns for savings accounts 100% online, regulated by the FCA and protected by the FSCS. You can register for free here.

– Fixed-Rate Bonds: These lock away your money for a set period (e.g., 1, 2, or 5 years) at a fixed interest rate. If you anticipate rates will level off or decrease in the future, securing a fixed rate now might be beneficial.

– Regular Savers: These accounts typically offer higher interest rates but come with limits on how much you can deposit monthly. Check Upscore to find the right deal for you.

3. Consider “Linked” Savings Accounts

Some banks offer savings accounts with preferential interest rates if you hold another product with them, like a current account. These can often outstrip the rates of standard savings accounts.

4. Stay Loyal, but Not Too Loyal

Historically, banks have offered attractive rates to lure new customers while not always passing rate increases on to existing savers. Periodically review your current savings rate and shop around. Switching can yield better returns. Check Upscore for convenient options.

5. Reassess Risk Appetite with Notice Accounts

Notice accounts often provide a higher rate than easy access accounts but require you to give notice (e.g., 30, 60, or 90 days) before making withdrawals. If you don’t need instant access to your funds, these can be a favourable middle ground.

6. Peer-to-Peer Lending

With the rising interest rate environment, peer-to-peer platforms might adjust their rates to remain competitive. While they come with a higher risk than traditional savings accounts, the returns can be more attractive.

7. Reconsider Current and Offset Mortgages

If you have a mortgage, particularly a variable rate or tracker, the rising rates will impact you. Consider using savings to offset against your mortgage or even overpay to reduce the long-term interest cost.

8. Think Inflation

Real return isn’t just about the interest rate but how it compares to inflation. If the interest rate on your savings account is 1.5% but inflation is 2%, you’re losing purchasing power. Always aim for a savings rate higher than the current rate of inflation.

9. Protect Your Savings

Remember, the Financial Services Compensation Scheme (FSCS) protects up to £85,000 of your money per financial institution. Diversify your savings across different banks or building societies if you’re lucky enough to have more than this.

10. Stay Updated with Fintech Innovations

Emerging fintech platforms often offer innovative savings products with competitive rates to attract users. Monitor these, but ensure you’re aware of the risks.

At Upscore, we curate the latest fintech innovators so you can get a better deal. Check them out for free here.


While rising interest rates in the UK can signal higher costs in areas like mortgages, they also herald a welcome change for savers. By staying informed, proactive, and flexible, you can navigate this new environment to maximise your savings returns. Happy saving!

Leave a comment