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Base Rate and savings

3 August 2023

The recent announcement

On 3rd August 2023 the Bank of England announced an increase in the Bank of England Base Rate from 5.00% to 5.25%.
Any Bank of England Base Rate changes are considered within the context of ongoing rate reviews across our product range, and any changes will be reflected on this website.

Base Rate. What is it?

It's also known as the Bank Rate, and it affects the interest rates offered by Banks, Building Societies and other financial institutions. It's set by the Bank of England, which regularly reviews it and can increase or decrease it at any time.

How can a Base Rate change affect your account?

The Base Rate is one of a number of things we look at when reviewing the interest rates of our savings accounts.
How your interest rate is affected by a Base Rate change depends on whether it's a fixed or variable account. If you're unsure what type of account you have, you can check this in your conditions.

Accounts with a fixed rate

Your account will not be affected.

Accounts with a variable rate

Your interest rate could change.

Whenever the Base Rate changes, we review the interest rates of our variable accounts and could decide to change them. If we decide to lower your rate, we will write to you to let you know. We will not write to you if we increase your rate.

Want to check your rate?

You can view all rates for accounts we offer on our interest rate pages or by signing into online banking and selecting your account.

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FSCS – protecting your money. Find out more here.

Gross rate means that we will not deduct tax automatically from your interest. You are responsible for paying any tax due to HM Revenue and Customs.

AER means Annual Equivalent Rate. AER illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different offers.

Tax free is the contractual rate of interest payable where interest is exempt from income tax.

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This site is intended for UK residents unless otherwise stated.
Birmingham Midshires is a division of Bank of Scotland plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. Registered office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland No. SC327000.
To contact the FCA Consumer helpline, please ring 0800 111 6768. Alternatively call the Money Advice Service on 0300 500 5000 or visit