# Financial Reporting and Banking: UK Market Update February 2026
**London, 6 February 2026** – The UK financial landscape is witnessing a significant shift as current account switching figures decline and the Ministry of Justice extends critical consultations on legal client accounts. While the Bank of England’s recent rate cut to 3.75% has impacted savers, high-interest regular savings accounts remain a competitive haven for consumers seeking to outpace inflation.
## UK Banking Trends and Market Shifts
Recent data reveals that UK current account switching decreased by 11.4% during 2025, with over 136,000 fewer switches compared to the previous year. This dip comes despite a robust final quarter in 2025.
In the legal sector, the Ministry of Justice has extended the deadline for its consultation on the Interest on Lawyers’ Client Accounts (ILCA) scheme to **9 March 2026**. The proposal aims to utilise interest from client accounts to support the national justice system.
## Savings Landscape: February 2026
Following the Bank of England’s decision in December 2025 to lower interest rates from 4% to 3.75%, the savings market has adjusted. However, specialist accounts continue to offer rates significantly above the base rate.
| Account Type | Top Market Rates (AER) | Key Providers |
| :— | :— | :— |
| Regular Savings | Up to 7.5% | Various UK Providers |
| Linked Easy Access | 5.0% – 6.0% | Santander, Nationwide |
| Notice Accounts | 4.15% (90-day) | Market Leaders |
| Easy Access | 4.5% | Various UK Providers |
## Security and Compliance Developments
The banking sector is facing heightened security challenges. FiCare Federal Credit Union recently reported a breach involving a third-party online banking platform, resulting in the theft of member funds. Simultaneously, a new investigation into Credit Suisse has uncovered 890 previously undisclosed accounts with potential historical links to the Nazi party, prompting further scrutiny from international regulators.
## Frequently Asked Questions
### What are the fundamental principles of accounting?
Accounting principles are standardised rules—such as GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards)—that ensure financial reporting is consistent, accurate, and reliable across business operations.
### Why has current account switching decreased in the UK?
According to data from 2025, switching dipped by 11.4% year-on-year. This suggests a potential increase in customer retention or a decrease in the perceived value of switching incentives offered by major banks during that period.
### What is the deadline for the ILCA consultation?
The Ministry of Justice has officially extended the consultation period for the Interest on Lawyers’ Client Accounts scheme until **9 March 2026**.
### Are there still high-interest savings options available?
Yes. Despite the base rate sitting at 3.75%, regular savings accounts are currently offering up to 7.5% AER, while certain linked easy-access accounts provide rates between 5% and 6%.