UK household interest rates: new time deposits
UK household interest rates: new time deposits stood at 4.24% in Aug 2026, according to Bank of England. It is one of the indicators in the Savings and loan rates table (Value · Monthly), with a complete series running from Jan 2016 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Savings and loan rates table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Households | |||||||||||
| Households: time deposits, new business | 4.24 | 4.21 | 4.3 | 4.26 | 4.07 | 3.76 | 3.67 | 3.77 | 3.76 | 3.81 | |
| Households: secured loans, outstanding | 4 | 3.97 | 3.96 | 3.92 | 3.92 | 3.93 | 3.95 | 3.9 | 3.92 | 3.9 |
Understanding UK household interest rates: new time deposits
Newly agreed percentage yields applied by monetary financial institutions across the United Kingdom to household time deposits measure the pricing conditions attached to fresh fixed-term and notice contracts. This flow statistic isolates agreements finalised during the specific monthly reporting window, providing a sensitive gauge of current retail deposit pricing strategies without the distortion of legacy contracts. It differs fundamentally from outstanding stock measures by capturing immediate competitive adjustments made by lenders seeking to attract fresh retail liquidity from domestic savers.
Evaluating this monthly flow requires tracking immediate shifts in market pricing, as new business rates respond rapidly to anticipated central bank decisions. Analysts must avoid comparing these flow percentages directly with outstanding stock averages, because new business reflects the sharp edge of competition whereas stock averages blend historical rates. Seasonal promotional campaigns around specific financial year-ends frequently cause temporary deviations in pricing behaviour. Revisions to early provisional estimates can be substantial if late reporting adjustments alter the underlying volume weighting of newly agreed contracts across participating institutions.
Frequently asked questions
- How does this new business series differ from outstanding time deposits?
- New business measures only contracts agreed during the current month, whereas outstanding deposits cover all historical contracts still active on balance sheets.
- Why are new business rates more volatile than outstanding rates?
- Lenders adjust pricing on new accounts immediately to manage short-term liquidity needs, while existing customer balances remain tied to legacy agreements.
- Do seasonal factors influence these newly agreed deposit rates?
- Yes, institutions often introduce promotional pricing during specific periods to capture inflows, creating predictable cyclical patterns.