February 2025’s savings round-up & news

The latest news to help you get the most from your savings account.

Here’s my monthly update sharing changes at leading UK savings accounts, as well as some of the articles you might have missed on the site.

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February’s savings update video

February’s savings news

Base rate cut expected to be cut in February

Though things can change, and often do, it’s looking more likely than not we’ll see a base rate cut on 6 February from 4.75% to 4.5%. That’ll have an immediate effect on a number of tracker rates, including Chase, Chip and Kroo, while variable rates will no doubt drop too.

It’s less clear with fixed rate bonds, as it all depends on longer term predictions on when we’ll see further cuts. Predictions in January have been for far fewer cuts in 2025 than were anticipated just a few months ago, and as a result, the top paying two, three, four and five year fixes all higher than the top rates at the start of December.

Easy Access ISA war continues

Plum, Moneybox and Trading 212 are still battling it out to be top of the easy access ISA tables, and as a result beating the highest paying non-ISAs too.

Though Trading 212 cut their rate to 4.9% for existing customers back in December, they’re offering a 0.22% one year bonus for newbies, adding up to 5.12%.

Moneybox is just behind (and what promoted T212 to increase their rate) with 5.11%, though it is a limited access account.

Meanwhile the Plum ISA rate briefly went up to 5.05%, but is now down to 5.01%. Of course, all three are variable so will likely fall along with other rates but perhaps not as low as others.

Watch out for 6 month bonuses

Both Chase and Chip have announced bonus rates just for new customers that put them high up the non-ISA easy access tables. But there’s a big catch.

The welcome offers are for just six months, so that temporary boost you get will only last a short period. I hope this isn’t something we see more providers offer. It’s not always clear when you see the headline rates that is just for a short period (let alone, as already mentioned, these rates are tied to the base rate so will fall again when that happens.)

Saying that, if you are eligible, they might be worth a look, even if it is just for a short period.

Chase Boost ended for many customers

Last summer Chase offered customers the chance to get an extra 1% until 16 January 2025. That Chase Boost has now ended, meaning a drop to 3.5%. The end of the bonus means you’ll be able to get better rates now if you switch elsewhere – especially with more cuts coming to the Chase rate.

Chase rate to drop AT LEAST ONCE in February

As mentioned, we’d expect the Chase rate to fall if there is a base rate cut in February. What you might not expect is for there will definitely be another cut. On 19 February it’ll move from tracking the base rate minus 1.25%, to minus 1.5%.

With most customers who signed up for a bonus last year now on the standard rate of 3.5%, it’ll mean a drop to 3.25%, or 3% if the base rate was cut a few weeks earlier.

This will mean there will have been four cuts to the Chase rate in seven months! We’ve seen lots of comments from you about how confusing the Chase rates are now – and we totally agree.

Tandem top up can be extended

Tandem meanwhile had a 0.25% boost for customers for 12 months, which many would have activated this time last year. When the boost ends you’ll now get 4.15%.

However, if you go into your Tandem app close to the end of the top up, you can hit to extend it. The 4.4% on offer right now isn’t at the top, and could fall (it’s variable below the bonus), but it’s not too bad if you don’t want to keep moving money around.

Trading 212 moves to monthly interest

Starting in January, the interest payments on Trading 212’s Cash ISA moved from being added daily to monthly. Some of you have been concerned by that, but you shouldn’t be. Since the AER remains the same, you’ll get the same amount of interest over the year. Here’s more on how compounding and AER work for savings.

Barclays Blue Rewards Rainy Day rate falls

Those of you who’ve stuck with the Barclays Blue Rewards add on, despite it’s £5 monthly fee, in order to get the Rainy Day Saver, will need to rethink. The rate will fall on 13 February to 4.87% on the first £5,000 saved there. Though that’s still competitive based on other options, when you factor in the fee the best you can hope for is actually 3.56%.

Starling in account interest ends

A reminder that you’ll stop earning interest in your Starling current accounts from 10 February 2025. You can instead open a separate 4% saver with the bank if you want to keep your cash in the same place.

Bizarrely some members of our community have reported being rejected for this new account, which is strange considering they’re all existing Starling current account customers. The good news is if you are rejected it won’t jave any impact on your credit score.

Revolut boosts standard rate to 4%

If you are a Revolut fan, you can get 4% on savings. Again, it’s ok. You’ll get more if you pay for a different subscription, up to 5% with Ultra.

• Standard Plan – 4% AER (variable)
• Plus Plan – 4% AER (variable)
• Premium Plan – 4.25% AER (variable)
• Metal Plan – 4.5% AER (variable)
• Ultra Plan – 5% AER (variable)

I’m not convinced it’s worth the fees, especially as they can get very high – it’s £540 a year for Ultra. But if you’re already paying for the other features, do compare the return against what’s elsewhere to see if you can benefit.

Remember, Revolut is still not fully licensed by the FCA, so the money is held (and receives FSCS protection) from ClearBank. That’s not unusual, but check if you have money with other providers who use ClearBank, such as Chip, the total doesn’t exceed £85,000.

Snoop launches new account

The budgeting/comparison app Snoop has entered the savings market with a 4% paying account. Right now that can be easily beaten, but it’s a provider we’ll keep an eye on in case rates increase.

Kent Reliance offers interesting fixed ISA

One to point out as it’s a little different to most fixed ISAs. Though you can only access your cash at the end of the one or two year fix, Kent Reliance allow you to keep adding new money whenever you want, rather than just in the first month or so.

Though you’re limited to the annual USA allowances, it’s worth looking at if you want to lock in a rate and keep saving tax-free.

February’s savings offers

We’ll share any other deals in our savings deals page if any more come along.

Top savings accounts for February 2025

Remember, these are the accounts at the top of the tables. We’ve more options in our best savings accounts page, which is updated every day by the team.

Current account linked saver picks as of 29/1/25

• Santander Edge Saver (6% AER variable, includes 1.5% bonus for 12 months): min £0 / max £4,000

Easy & limited access picks as of 29/1/25

• Trading212 Easy access ISA (5.12% AER variable): min £1 / max £20,000
• Chase (5% AER variable for six months): min £1 / max £3m
  • Drops to 4.75% in February, and 3.25% after six months
  • Requires a current account
• Atom (4.85% AER fixed): min £50 / max £100,000
  • Drops to 3.25% in months you make withdrawals
• Close Brothers (4.7% AER variable): min £10,000 / max £2m

Easy access from investment accounts pick as of 29/1/25

• Trading 212 (4.9% APY): min £0 / max N/A – see full analysis here.

Notice accounts picks as of 29/1/25

• 2 month notice Kent Reliance (4.8% AER variable)60-day notice: min £1,000 / max £1m)
• 3 months notice Oak North via Prosper (4.95% AER variable): 90-days notice: min £20,000 / max £500,000
• 4 months notice Stafford Building Society(4.85% AER variable): 120-day notice: min £5,000 / max £150,000

Fixed savings accounts picks as of 29/1/25

Here are the leading options right now. Make sure you keep an eye on my best buy list for all the options.

• 6 months Zenith (4.7% AER fixed): min £1,000 / max £2m
• 9 months Kuwait Finance House via Raisin (4.68% expected profit fixed): min £1,000 / max £85,000

• 12 months Vida (4.77% AER fixed): min £100 / max £85,000
• 18 months Oxbury (4.65% AER fixed): min £1,000 / max £500,000

• 2-year Close Brothers (4.7% AER fixed): min £50 / max £100,000
• 3 year fix Birmingham Bank (4.63% AER fixed): min £5,000 / max £250,000

• 4 year fix Oxbury Bank (4.54% AER fixed): min £1,000 / max £500,000
• 5 year fix JN Bank (4.8% AER fixed): min £100 / max £500,000

Regular Saver accounts picks as of 29/1/25

We’ve got a dedicated Regular Saver best buy article, so you can see further details and more rates there.

• Principality Building Society 6-month regular saver (8% AER fixed): min £0 / max £200 a month
• First Direct Regular Saver (7% AER fixed): min £25 / max £300 a month
  • requires a First Direct current account
• Co-operative Bank Regular Saver (7% variable): min £1 / max £250 a month
  • Requires a Co-op Bank current account
• Principality Building Society Christmas regular saver (7% AER fixed): min £0 / max £125 a month
• Nationwide Flex Regular Saver (6.5% AER variable): min £1 / max £200 per month
  • max 3 withdrawals per year, after which your rate drops to 2.15%.
  • Requires Nationwide current account
• Club Lloyds Monthly Saver (6.25% AER fixed): min £25 / max £400 a month
  • Requires Club Lloyds current account

ISA picks as of 29/1/25

You can keep an eye on the tables (we update them every day) in our best Cash ISA accounts article.

• Easy access Trading212 (5.12% AER variable)
• 1 year Close Brothers (4.55% AER fixed)
• 2 years Hodge Bank (4.45% AER fixed)
• 3 years Shawbrook (4.42% AER fixed)
• 4 years UBL (4.05% AER fixed)
• 5 years Hinkley & Rugby Building Society (4.25% AER fixed)
• Lifetime ISA Moneybox (5% AER variable)