Savings bonus rate ending: what to compare next
Many easy-access savings accounts use a temporary bonus. When it expires, the account can remain open but pay a materially lower rate.
Find the exact expiry date and the post-bonus AER, then compare that rate with other accounts before the bonus ends. The decision is not automatically “move everything”: check withdrawal limits, tax wrappers, interest-payment dates and whether moving money loses accrued benefits.
The headline rate can contain two components
An account advertised at 4.50% AER might consist of a 1.50% underlying rate plus a 3.00% temporary bonus. When the bonus ends, the account may fall to the underlying rate unless the provider changes it.
Use the provider’s maturity or bonus-ending notice rather than an old comparison-site figure.
Start with a dated baseline. Separate the underlying variable rate from the temporary bonus and write down the exact bonus end date, current balance and access rules. Compare the rate that applies after expiry, not the rate that originally attracted you to the account.
For savings bonus rate ending: what to compare next, cross-check the expected result against the actual result in the section 'The headline rate can contain two components'.
Use “The headline rate can contain two components” as a decision checkpoint on Savings bonus rate ending: what to compare next. Save the current screen, statement or tariff that supports your conclusion, and note what result would make you stop, contact the bank or choose a different route. That keeps the next step evidence-led.
Calculate the cost of doing nothing
On £20,000, a fall from 4.50% to 1.50% represents roughly £600 less gross interest over a full year if rates stayed unchanged: £900 versus £300. That simple pound comparison shows whether moving the money is worth the effort.
It is an example, not a prediction - actual rates can change and interest calculation frequencies differ.
Worked example: £20,000 earning 5% produces about £1,000 of gross interest over a full year, while 3% produces about £600. A two-percentage-point drop is therefore roughly £400 a year on that balance before tax, which is large enough to justify checking alternatives. That is more useful than asking whether the product or process is good in general.
For savings bonus rate ending: what to compare next, cross-check the expected result against the actual result in the section 'Calculate the cost of doing nothing'.
Check access rules before transferring
Some “easy access” accounts restrict the number of withdrawals or reduce the rate after too many. A replacement account may also impose a maximum balance or require a linked current account.
If the old account is an ISA, use the formal ISA transfer process where required rather than withdrawing cash casually and risking the tax wrapper.
Use a fixed sequence rather than repeated trial and error. compare like with like: easy access against easy access, notice against notice and fixed against fixed. Check withdrawal limits, nominated-account rules and any rate tiers before moving the money, then save the old and new rate pages so you can verify the decision later. After each step, record what changed and what did not.
For savings bonus rate ending: what to compare next, cross-check the expected result against the actual result in the section 'Check access rules before transferring'.
Watch the interest payment date
If annual interest is due shortly after the bonus ends, ask whether moving the balance before that date affects how accrued interest is paid. Usually accrued interest is not simply lost, but the operational treatment varies.
Close an account only after confirming where any final interest will go.
Timing can change the outcome. the bonus end date and the interest payment date may be different. Moving money immediately before an interest credit can complicate reconciliation, while waiting months after the bonus ends can cost more than a small transfer delay. Put both dates in the calendar and plan around them.
For savings bonus rate ending: what to compare next, cross-check the expected result against the actual result in the section 'Watch the interest payment date'.
For this part of Savings bonus rate ending: what to compare next, avoid acting from memory. Under “Watch the interest payment date”, keep the live provider wording beside your own amount, date or account status. If the two do not match, resolve that discrepancy first instead of repeating the payment, application or support request.
Set a calendar reminder for the next promotional end date
Bonus accounts reward active management. Record the expiry date when you open the account, not when the provider’s reminder eventually arrives.
A 30-day reminder gives you time to compare without moving money impulsively after the rate has already dropped.
Also compare the gain from switching with the size of the balance. Improving a £500 balance by 1 percentage point is worth only about £5 gross over a full year, while improving £50,000 by the same amount is roughly £500. That does not mean small balances should be ignored; it simply helps you spend your time where the difference is meaningful and avoid opening several accounts for pennies of extra interest.
If the normal route fails, switch from retrying to evidence. if the credited interest does not match the rate period you expected, ask the provider to show the balance, rate and day-count used. Keep the account statement and the bonus terms that applied when you opened or renewed the account.
Frequently asked questions
Does the account close when the bonus ends?
Usually not; the account often continues at its underlying or then-current rate. Check the product terms.
Should I move the money before the bonus expires?
Compare the old post-bonus rate with alternatives and consider access/tax implications before moving.
Can the non-bonus rate also change?
If the underlying rate is variable, yes. Check the provider’s current notice and terms.
Worked example: Imagine £18,000 earns 4.75% while a 12-month bonus applies, then drops to 2.00%. The difference is 2.75 percentage points, which is about £495 a year before tax on an unchanged £18,000 balance. That is why the important comparison is the rate you will actually receive after the bonus, not the attractive rate that first brought you to the account.
Check the end date before moving money. Interest may be calculated daily but paid monthly or annually, and moving everything a few days before an interest-payment date does not necessarily mean you lose accrued interest; the exact treatment depends on the account terms. Also check whether the replacement account limits withdrawals or requires a minimum balance to earn its advertised rate.
A useful decision is to compare three things on the same date: the post-bonus rate, the best realistic alternative you would actually open, and the friction or restrictions involved in moving. If the rate gap is small on a modest balance, convenience may matter more. If the gap is large on tens of thousands of pounds, inertia becomes expensive.
Use one closing decision rule. set the next review before the next promotional date rather than relying on memory. The account remains competitive only if the post-bonus rate, access and service still fit what the money is for.
For savings bonus rate ending: what to compare next, cross-check the expected result against the actual result in the section 'Frequently asked questions'.
Sources and verification
Isabelle Reed - Personal Finance Writer
Treat a bonus expiry as a scheduled review date. Translate the rate drop into pounds on your actual balance, then move only when the improvement is meaningful after access rules and tax treatment.
MyBankAnswers uses official provider and UK regulatory sources wherever practical. Information is general and does not constitute financial advice.