Will Cash ISA rates go up or down?

Do Cash ISA rates follow Bank Rate?

Usually, but not exactly. A Cash ISA is a savings account held inside an ISA, so what the Bank of England says about savings rates applies to it.

The Bank sets Bank Rate, the rate it pays to banks and building societies that hold money with it. It says Bank Rate affects the level of all other interest rates in the UK. When it raises Bank Rate, banks will usually increase the interest they offer on savings, and the reverse when it lowers it.

The Bank also says Bank Rate is not the only thing that affects savings rates. Rates can change for other reasons and may not move by the same amount.

Markets matter too, especially for fixed rates. The Bank’s July 2026 Monetary Policy Report names Bank Rate as the reference rate for instant access accounts and the two-year overnight index swap (OIS) rate as the reference rate for fixed-rate savings bonds. The Bank says the OIS curve, which shows market interest rates, captures both expectations about the future path of Bank Rate and risk premia, which compensate investors for risks around future interest rates. The report’s figures cover instant access accounts and fixed-rate bonds in general, not Cash ISAs specifically.

What is Bank Rate on 6 October 2026?

The Bank of England says its Monetary Policy Committee meets eight times a year to decide Bank Rate. Bank Rate has been 3.75% since 18 December 2025, and it has not changed at any decision since, including on 17 September 2026. The Bank lists its 2026 and 2027 decision dates on its website.

Bank Rate, as at 6 October 2026

Bank Rate

3.75%

Set by the Monetary Policy Committee

Latest decision

17 September 2026

Held at 3.75%, by 6 votes to 3

Last change

18 December 2025

Cut from 4% to 3.75%

Next decision

5 November 2026

Date set by the Bank of England

What did the Bank say in September 2026?

The Committee’s meeting ended on 16 September 2026, and the Bank published its summary on 17 September 2026. In brief:

• The decision. The Committee voted 6 to 3 to keep Bank Rate at 3.75%. The three members in the minority voted for a 0.25 percentage point rise, to 4%.
• The reasons. It said conflict in the Middle East has pushed energy prices up further since its previous meeting, and that they remain higher and more volatile than before the conflict. UK CPI inflation rose to 3.1% in August 2026 and is likely to rise further over the coming quarters. It said the policy stance needed depends on the scale and duration of the energy shock.
• The risks. The Committee judged that the risks to the inflation outlook are tilted to the upside, and said the outlook could still change materially as events in the Middle East unfold.
• Its stance. It said it stands ready to act as necessary to keep CPI inflation on track to meet the 2% target in the medium term.

That is the Bank’s account of its own decision. It is not a forecast of what it will decide on 5 November 2026, and it is not a forecast of savings rates.

How do variable and fixed rates differ?

FCA rules require most providers to include a summary box in their direct offer promotions for Cash ISAs, the ones that invite you to apply. It has to say whether the provider has the right to change the rate and, if so, in what circumstances and how and when it will give notice of the change. For a fixed-term account it has to explain what happens at the end of the term.

For how the choice between locking in and staying flexible works, including what leaving a fix early can cost, see fixed or easy access ISA.

How do I read a Cash ISA rate?

Three terms do most of the work.

• AER. AER stands for annual equivalent rate. It illustrates what the interest rate would be if interest was paid and compounded once each year, which means interest is added to the balance and then earns interest itself. That lets you compare accounts that pay interest at different intervals. It assumes the interest stays in the account: take it out and the AER will not be achieved. The industry practice note on the AER, written for banks and building societies, says Cash ISA advertisements should show the AER and the tax-free rate.
• Tracker rates. A tracker rate automatically follows a reference rate such as Bank Rate. It is set as a gap above or below it, for example Bank Rate minus a set number of percentage points, so when Bank Rate moves, the account’s rate moves with it. The summary box has to name the reference rate and explain how the account’s rate is worked out from it.
• Bonus rates. A bonus rate is paid for a stated period, for example the first 12 months, and the rate then falls. The same practice note says advertisements for a bonus rate should state how big the bonus is and how long it lasts, and the FCA’s summary box has to explain when each different rate applies, including an introductory rate that runs until a set date.

Will the Cash ISA limit change rates?

The planned cut to £12,000 was cancelled in the Budget on 28 October 2026, so the Cash ISA limit stays £20,000. Before that, HMRC’s tax information and impact note, published on 17 September 2026, had expected the lower limit to encourage the people it affected to put more of their ISA savings into Stocks and Shares ISAs, and said the scale of that move was not expected to have a significant macroeconomic impact. It did not say what the change could mean for Cash ISA rates, and we do not guess. See the Cash ISA limit for what the Budget decided.

Where can I see Cash ISA rates?

Rates change often, so this page does not list any. Our Cash ISA rate tables show the rates we have checked, with separate views for easy access and fixed rate accounts. The Cash ISA interest calculator shows what a rate is worth in pounds over any term. To see how those rates compare with the latest inflation figure, see do Cash ISAs beat inflation?.