What Is The Bank Of England Base Rate?

Bank of England Base Rate and how it affects you

When the Bank of England Base Rate moves (up or down), your standard and cash interest rates also move by the same amount. But what is the Base Rate and how could these changes affect you?

This is the rate that the Bank of England charges us to borrow money. Each month the Bank of England decides whether to change it based on economic factors.

It has a direct impact on how much it costs us to lend money, so we want to make sure you can clearly see how changes to it affect your interest rates.

If you’d like to know more about the Base Rate, go to the Bank of England website .

Your statement shows your standard and cash interest rates as simple rates, with a compound equivalent next to them. The simple rates move in line with the Base Rate – so when the Base Rate changes, your simple rate will change by exactly the same amount. 

See how simple and compound interest works.

The Bank of England Base Rate is currently 0.50%.

We’ll leave a message for you on your monthly statement after a change has happened. It’ll show you how much the Base Rate has changed by and what your new standard and cash interest rates will be.

We’ll apply a Base Rate change to your interest rates the day after the statement message notifying you of a base rate change.

If you don’t use your card very often, we’ll tell you about changes by SMS or email after you’ve started using it again. Find out how to update your contact details .

Let’s say the Bank of England Base Rate goes up by 0.25%. You’ll then pay an extra 21p a month more in interest for every £1,000 of your balance – this doesn’t include your promotional balances as these aren’t affected by Base Rate changes.

Bank of England Base Rate

The effect of a 0.25% change

Try our Interest calculator. You’ll be able to see how changes to the Base Rate affect your minimum payments and interest rates. Just keep in mind that this is only a guide. 


Yes, interest rate changes will impact your outstanding balance as well as both new and previous spend. Any promotional balances purchase plans you may have will be unaffected.

Your interest rates move in line with the Bank of England Base Rate, however, changes to the Base Rate (up or down) won't affect you if you close your account. You'll just need to continue to pay your balance down at your current interest rate until it's cleared. 

For more FAQs on your Bank of England rate tracking have a look at our full set of frequently asked questions.