Alex Sitaras, Head of Savings and Partnership Products
9 February 2026
To fix or not to fix? It's a question many savers are asking, given interest rates have dropped in recent times. Do you lock your money into a fixed rate account? Or would you prefer an easy access variable rate savings account?
I’m here to help you decide. But first, what are fixed rate and variable rate savings accounts?
Fixed rate account
Your money is typically tied up for a set term – usually one, two, three or five years. And during that term, your interest rate stays the same.
Variable rate savings account
This type of account is usually easy access, which means you can take your money out whenever you need it. The interest rate you get when you open an account can go down as well as up.
Which is the best product for you?
To be honest, there isn’t really a right or wrong answer. It all comes down to you – and what you want to achieve with your savings. It could even be wise to use both options for different goals you have.
Here's how to think about it.
For savings you might need soon
A variable rate savings account may be the best option. Most variable products allow you to dip into your money if you need it – for things like unexpected bills, or last-minute holidays.
- They often provide the flexibility to access your money when you need to.
- You can usually keep adding money to your savings account.
- The interest rate can change over time so it's likely to go down as well as up.
- As rates can change, you might not be able to plan ahead as well, compared to a fixed rate account.
Check out our easy access savings accounts.
For money you don’t need right now
A fixed rate account could be a good option to help your money work harder. It’s a really good way to save for goals a few years away, like a special holiday or wedding.
- The interest rate is fixed for the term of your account. So, you’ll know at the start how much you’ll earn over that time.
- You won’t usually be able to dip into your savings, reducing the temptation to spend.
- If interest rates go down, the interest rate on your fixed rate savings will always stay the same for the fixed term.
- You may need to pay a fee/charge if you want to access your savings before the end of the fixed term. Some accounts don't allow any early withdrawals or closure.
- You may not be able to continue to pay in throughout the fixed term.
Check out our range of fixed rate bonds ;and our fixed rate Cash ISAs.
Is this a good time to fix your savings?
If you’re keen to use a fixed rate account for parts of your savings, it might be worth exploring your options now. Rates have gone down in recent years and may do so again in the near future – but there are still some great deals out there that could help to boost your savings.
You may find some variable rates are higher than fixed right now. But it’s important to think ahead. If rates drop further, variable rates will follow. They could go lower than what fixed rate products are offering now.
By fixing your rate, you don’t have to worry about what rates will do in the near future. You’ll know where you stand for the term you choose, without having to check for the best deals all the time.
Are you a Skipton Building Society member?
Being a member means having access to exclusive member rates and accounts.
You get more because membership means more.
Don’t forget your future goals
Some goals sit further down the road – like retirement or financial security for your family. For these goals, you may want to consider investing – especially if interest rates continue to fall.
It’s still important to have savings accounts for short to medium-term financial goals. But over the long-term, investing could help make your money work harder and achieve your future goals. That’s providing you’re happy to accept some risk to your money and you don't need access to your money for at least five years.
Want to know more about investing? You could benefit from a free initial consultation to decide if it’s a worthwhile step. We also offer financial advice, with no pressure to act.
Your Personal Savings Allowance (PSA)
This is the total amount of interest you can earn on your savings each tax year (outside of ISAs) without paying tax.
Find out how much your Personal Savings Allowance is – and how you could benefit.
