Interest rates were cut by 0.25 percentage points two weeks ago, which experts say may spell bad news for savers
Savers are being warned that now is the time to lock in a fixed rate account, with rates being slashed followingA higher interest rate means you get a better return on your savings. If you had £10,000 locked away at a rate of 5.25 per cent, you would make £525 in interest over a year, and at 5 per cent, you would make £500.
Research conducted by the Bank of England revealed there is currently £252bn sitting in UK current or savings accounts earning no interest, signalling the “glaring apathy” savers have towards their nest eggs, Ms Eastell said. On 7 November, the Bank’s Monetary Policy Committee voted to cut interest rates by 0.25 percentage points to 4.75 per cent – the second time rates have been reduced this year.
However, if at the same time the inflation rate is around 5 per cent, the cash in your savings account is only losing value.
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