Banks and building societies have been quick to lower savings account interest rates following the Bank of England's decision to cut interest rates. Experts advise savers to explore fixed-rate deals and consider smaller banks for more competitive rates.
More than 30 banks and building societies have lowered interest rates on their savings accounts following the Bank of England's decision to cut interest rates from 4.75 percent to 4.5 percent last Thursday. Moneyfacts data reveals that these lenders have reduced rates on at least one product, with some making multiple cuts. Barclays announced on Tuesday that it will cut rates on two accounts later this week. The Everyday Saver will drop from 1.5 percent to 1.
25 percent on balances up to £10,000, while the Rainy Day Saver will fall from 5 percent to 4.76 percent on balances below £5,000.Rachel Springall, a finance expert at Moneyfactscompare.co.uk, expressed disappointment over the rate cuts, emphasizing that savers are vulnerable to base rate reductions. She urged institutions to quickly reassess their market positions and adjust rates accordingly. Springall also recommended that savers consider fixed-rate deals to secure guaranteed returns, noting that some providers have been cutting fixed rates on bonds and ISAs.Alastair Douglas, CEO of TotallyMoney, advised consumers to explore smaller and newer banks, as they are more likely to offer competitive rates and better service. He pointed out that several providers offer easy access savings accounts with rates exceeding 4 percent, allowing for both earnings and withdrawals. The Bank of England predicts inflation to reach 3.7 percent by mid-next year. With falling rates and rising inflation, savers on deals below or near inflation will experience minimal real returns. The best rates as of Tuesday (11 February) can be found below, but remember that top providers change frequently, so check before committing your funds.
Savings Rates Bank Of England Interest Rate Cuts Fixed Rates Moneyfacts Totallymoney
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