UK Banks Falling Behind: Global Savings Rates Outpace Local Interest

The Big Surprise: UK Banks Are Giving Out Snoozefinances

Grab a cuppa, because the numbers here are a bit of a shocker. While the Bank of England is stippling 5.25% on its base rate (the headline interest that touches everything from mortgages to holiday loans), the UK’s biggest banks are offering something that feels more like a lullaby than a real financial boost.

What the Numbers Say

When a team from finder.com teamed up with the money‑smart app Plum, they pulled out a spreadsheet to see how UK savings rates stack up against other nations’ base rates. They zoomed in on the “easy access” savings accounts – the accounts you can dip into whenever you feel like a quick grab for cash – and compared averages across ten countries.

UK
• Average: 1.6% (just a fraction of the 5.25% base)
• How it stacks up: 1.6% is only about 31% of the base rate – that’s like filling a glass with only a sliver of the water you’re supposed to use.
Norway
• Average: 2.82%
• The base here is 4.25%, so the rate is about 66% of the base. In a snowstorm, that’s still pretty chilly.
Sweden
• Average: 2.6%
• Base: 4%, meaning the rate takes up 65% of the base. Still a good stretch of the floor.
New Zealand
• Average: 2.95%
• The kiwi country has a 5.5% base, putting that average at 54% of the base. A decent portion of the slab.

Where the UK Ranks

Our friendly data sleuths were surprised to find the UK’s average rate be the 4th lowest on the list, measured against each country’s own base rate. Ring the bells for Norway, Sweden, and New Zealand, who are topping the charts.

A Word to the Wise

So, if you’re dreaming of turning your savings into a solid stream, the numbers whisper that you might want to peek at what other banks or even countries are doing. Or, if you prefer parking your pennies at a UK bank for other reasons, know that the current climate is a bit on the “stretchy” side – you’ll earn a modest yield, but it’s nothing out of the ordinary.

For now, you can’t beat the Central Bank’s point of view – it’s the true benchmark for how much gold the British pound is willing to hand back. Keep sipping that tea; your savings might take longer to laugh.

What countries have lower interest rates than the UK?

Bank Rates: The Great Mystery of Mismatch

Picture this: your favourite bank promises you “our rates are the best!” yet your savings account is stubbornly stuck at 0.12 %. That’s the reality for the United States, and surprisingly, it’s a story that skips across continents.

United States – Highest Base, Lowest Payback

Base rate tops the charts at 5.5 %.
Average consumer rate from five big banks? A mere 0.12 %.
That’s only 2 % of the world’s biggest benchmark.

Europe’s Pretty Good, But Still Pretty Bad

Let’s look at France and Germany. Both follow the European Central Bank’s 4 % base rate. Yet:

France averages 0.89 %. That’s almost 23 % of what the ECB is telling banks to aim for.
Germany is even worse at 0.89 %. A statistical rock‑solid “give‑away” compared to their 4 % legal talk.

Canada – not the worst, but still down in the dumps

Banking base at 5 %.
Average consumer rate? 1.1 %. That’s just 23 % of the promised star.

Why This Matters – The Voices of the People

Jon Ostler, Finder.com CEO

“There’s a growing chorus, asking banks to give more back. If the UK leans the right way, it would still be sub‑par compared to the rest of Europe. If you’re a consumer, there are ways to fight back: — Look for regulated savings platforms that offer better rates. — Take advantage of big bank switching promos to offset the low numbers.”

Victor Trokoudes, Plum CEO

“Big UK banks jumped questions for loans, but snoozed on raising savings rates. It’s like they’re eating the bread but leaving the crumbs to the savers.

“The cost of living crisis is a relentless monster, and yet banks are giving more to borrowers than to those who actually save. We’ve launched Plum Interest to crank rates higher and get closer to the Bank of England base rate.”