Bank Rate Rises to 4%: What It Means for Your Savings App
Bank Rate rose to 4% on 5 November and Nationwide is lifting savings rates. Plus record bank switching, car finance offers and Trading 212 auto-deposits.
The Bank of England raised interest rates today, the busiest quarter for bank switching in nearly three years has just been reported, the FCA has set rules for early car finance payouts, and Trading 212 has found a way to top up your investments straight from your bank without a card. The first two are about getting paid more for the cash you already hold.
Bank Rate rises to 4%, and savings rates are starting to follow
The Monetary Policy Committee voted 8 to 1 to raise Bank Rate by 0.25 percentage points to 4%, the Bank of England announced on 5 November. The one dissenting member wanted a bigger rise, to 4.25%. The Bank said CPI inflation rose to 3.5% in September and is now expected to reach around 5% by the middle of next year, driven by energy prices as the conflict in the Middle East enters its ninth month. The next decision is due on 17 December. Source: Bank of England.
Within hours, Nationwide said it would raise its variable savings rates by up to 0.25 points from 1 December 2026. Its 1 Year Triple Access Saver and ISA go from 3.30% to 3.55%, Flex Instant Saver from 2.30% to 2.50%, and its children’s accounts, including the Junior ISA, to 3.05%. Virgin Money’s off-sale variable accounts rise by up to 0.25 points on the same date. Source: Nationwide.
What to do: accounts that track Bank Rate by a fixed margin should rise on their own, usually after a short delay set out in the terms. Accounts with a rate the provider chooses only rise if it decides to pass the increase on, and some will take weeks or pass on less. Check your savings app over the next fortnight; if your rate has not moved, compare it with the best easy access savings apps and move the money. Trading 212’s cash interest explained and Monzo vs Chase savings rates show how two of the tracker accounts work.
Bank switching hits its highest level since 2023
The Current Account Switch Service recorded 411,384 completed switches between July and September, up 55% from 265,083 a year earlier and the highest quarterly total since the end of 2023, PA reported on 5 November. September was the busiest month, with 152,299 switches, and the total for 2026 so far is 1,019,912. In the previous quarter, April to June, Nationwide had the biggest net gain from switchers at 23,636, followed by Barclays (21,169), NatWest (20,287) and Monzo (17,544). The bank figures are supplied voluntarily and do not count switches made outside the service. Source: The Standard.
A switch through the service moves your direct debits and standing orders for you and comes with a guarantee if something goes wrong, which is why the cash bonuses banks pay to switchers are worth having. Each one has conditions, and missing one loses the whole payment. How to switch bank account walks through the process and best bank switch offers lists what is on offer.
Car finance lenders can now offer compensation early
The FCA said on 3 November that lenders may make settlement offers to customers owed money under its motor finance compensation scheme, while legal challenges to the scheme continue. Barclays Partner Finance has confirmed it will make offers to some of its customers. An offer must be no less than you would get under the scheme, and the lender must explain the trade-off: you keep the money even if the court case would have cut your payout, but you cannot claim more if the case goes the other way. Offers cannot be taken to the Financial Ombudsman, because you can always turn one down and wait for the scheme. The challenges are due to be heard between 16 February and 3 March 2027, so the scheme’s own payouts are on hold until then. Source: FCA.
If you have not complained yet, you can do it yourself, directly with the lender and for free. The FCA warns that claims firms can take up to 36% of any compensation, including VAT. It will also list the lenders making genuine offers on its website, so check that list before replying to any message about a payout. Fake banking app scams covers how impersonation messages are dressed up.
Trading 212 lets you top up investments straight from your bank
Trading 212 has launched automatic deposits paid directly from your bank account, using TrueLayer’s Bank on File system, IT Brief reported on 4 November. It works with the UK’s six largest banks. You approve a mandate once in your banking app, then choose an AutoInvest schedule for your Pies; each deposit is taken from your account and arrives instantly, instead of relying on a card or a Direct Debit that can take days to clear. It runs on commercial variable recurring payments, which let a firm collect varying amounts within limits you agree, without you approving each payment. The companies say 97% of payments have gone through first time since the service went live in June. Source: IT Brief.
For anyone drip-feeding a stocks and shares ISA, this removes the most common reason a regular investment fails: an expired card. Our Trading 212 review and best stocks and shares ISA apps cover the rest.
