UK household interest rates: time deposits
UK household interest rates: time deposits stood at 3.41% 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, outstanding | 3.41 | 3.39 | 3.36 | 3.31 | 3.29 | 3.28 | 3.31 | 3.34 | 3.35 | 3.36 | |
| 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 |
Understanding UK household interest rates: time deposits
Percentage returns applied by monetary financial institutions across the United Kingdom to resident household time deposit balances capture the average yield on existing fixed-term and notice savings. Unlike sight deposits, these funds require a specified notice period or mature after a fixed duration, allowing institutions to plan liquidity management more reliably. This stock measure encompasses all active time deposit contracts regardless of when they were originally agreed, meaning older agreements signed under different monetary conditions continue influencing the aggregate average alongside more recent placements.
When analysing these monthly figures, observers should recognise that stock measures lag behind current market conditions because long-term contracts lock in past pricing. Comparing this series with new business time deposits highlights the gap between legacy agreements and prevailing market rates. Revisions to early estimates occur periodically as reporting institutions correct classification errors between sight and time categories. Seasonality plays a minor role, though maturing deposits tend to cluster around specific calendar milestones. Analysts should rely on longer-term trajectory analysis rather than month-to-month volatility when assessing how household savings remuneration evolves across the wider financial landscape.
Frequently asked questions
- What distinguishes time deposits from sight deposits in this dataset?
- Time deposits involve fixed terms or notice periods restricting immediate withdrawal, whereas sight deposits allow instant access without financial penalty.
- Why does this outstanding series lag behind current market interest rates?
- The metric covers all active legacy contracts signed in prior periods, meaning older, lower-rate agreements continue pulling down the weighted average.
- Do these figures include cash ISA balances held for fixed terms?
- Tax-advantaged accounts are generally treated separately within specialised savings breakdowns rather than being amalgamated into standard household time deposit categories.