Savers in the UK are being urged to “grab a deal quickly” as any future interest rate cuts could impact existing account offerings.
Experts from Moneyfacts are highlighting that rates on easy access accounts are already coming down in a blow to bank customers.
This comes after the Bank of England confirmed the UK’s base rate would remain at a 16-year high of 5.25 per cent.
The base rate has remained at this level since August 2023 which has been detrimental to borrowers.
However, savers have benefited from the decision as high street banks and building societies have passed on this rate hike to their accounts.
Despite this, it looks likely this period of high interest rates could be coming to an end in their near future.
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Savers are being reminded to take advantage of high interest rate accounts before a potential rate cut
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Here is a full list of average savings interest rates, depending on the type of account, according to Moneyfactscompare:
- Easy access account – 3.11 per cent
- Notice account – 4.27 per cent
- Easy access ISA – 3.33 per cent
- Notice ISA – 4.17 per cent.
Notably, each of the average rates are significantly less than the current Bank of England base rate.
Rachel Springall, money expert for Moneyfacts, urged savers to take advantage of high interest accounts while they still have the chance.
She explained: “Consumers worried that interest rates are due to come down this year may want to grab a deal quickly and review their existing pots.
“Variable savings rates can change at any time and, as we have seen in the past, a base rate cut can have a detrimental impact on the savings market.
“Those prepared to lock their cash away for a guaranteed return could grab a fixed rate bond, as some one-year deals still pay over five years, but six months ago there were some paying six per cent.”
As it stands, analysts are pricing in a potential interest rate cut from the Bank of England in the later half of 2024.
However, some have suggested that the central bank could slash rates by as soon as next month.
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In light of this, Moneyfacts finance expert reminded bank customers to “keep a close eye” on happenings within the savings market.
Springall added: “Whichever account savers choose, any clear indications of an impending base rate cut could lead to an upheaval in the market, so savers must not be complacent.
“As is evident, many of the top rate deals can be cut or withdrawn quickly if providers are facing an influx of deposits.
“Savers need to keep a close eye on the top rate tables to not be left disappointed.”
