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The Sun
03-08-2025
- Business
- The Sun
Warning to savers missing out on £100s ahead of key Bank of England decision – it takes minutes to fix
A WARNING has been issued to savers missing out on hundreds of pounds ahead of a key Bank of England (BoE) decision this week. People risk the cash blow because they're leaving money in low-paying easy access accounts. The latest data from reveals someone with £10,000 in savings could earn an extra £300 by switching to an account with a higher interest rate. Adam French, from the comparison site, said savers were in danger of their hard-earned cash "languishing" by making the mistake. 'Simply switching a £10,000 savings pot away from a high street bank's easy access account to a market-leading one-year fix can leave you £300 better off in 12 months' time. "Not a bad return for a few minutes' work, if you aren't going to need access to the money sooner." The warning comes ahead of the BoE's Monetary Policy Committee (MPC) meeting on Thursday (August 7) where it will decide what to do with the base rate. The base rate is charged to high street banks and other lenders and usually reflected in savings and mortgage rates. Any fall is good news for mortgage holders who tend to see rates plummet, but it spells bad news for those with savings accounts. The bank is widely expected to cut the base rate, which currently sits at 4.25%. The MPC, made up of nine members, last met in June when it decided to keep interest rates unchanged. Six members voted to keep rates at the existing level while three members voted for a cut to 4%. What is the Bank of England base rate and how does it affect me? The BoE uses the base rate to control inflation, with a hike designed to discourage spending and keep prices in check. The current Consumer Price Index (CPI) measure of inflation is 3.6%, over the BoE's 2% target. However, the MPC is under pressure to lower interest rates to get the stagnating economy growing. How to make your savings work harder You can't do anything to control what the BoE does with the base rate, but you can make your savings work harder. One way to do this is by locking your savings into a fixed-term account. These accounts pay out an interest rate for a set period of time, from anywhere between six months and five years. Fixed-rate savings accounts generally offer better interest rates in exchange for you not being to withdraw any cash. Just bear in mind you may have to pay a charge for any early withdrawals. Second, it's worth making the most of ISAs which allow you to save money without having to pay tax on any interest earned. You can spread a total of £20,000 across various ISA types including Cash ISAs and Stocks and Shares ISAs. And of course, shop around for the best deals so you're not left with a low-paying savings account. Comparison sites like and can help you find the best account suited to you. How you can find the best savings rates If you are trying to find the best savings rate there are websites you can use that can show you the best rates available. Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what's out there. These websites let you tailor your searches to an account type that suits you. There are three types of savings accounts fixed, easy access, and regular saver. A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term. This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account. Some providers give the option to withdraw but it comes with a hefty fee. An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals. These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee. Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
Daily Mirror
16-05-2025
- Business
- Daily Mirror
Martin Lewis tells savers the one thing they need to do 'today' to protect money
The Bank of England cut the base rate from 4.5% to 4.2% last week - and savings providers are usually quick to cut the interest rates they have on offer at the same time Money Saving Expert Martin Lewis has issued a stark warning to Brits considering fixed rate savings accounts, urging them to act "today". Following the Bank of England's base rate cut from 4.5% to 4.2% last week, Martin highlighted that savings providers are likely to follow suit and reduce their interest rates swiftly. He advised those who have been hesitant about fixing an interest rate to make their move promptly, as he believes returns are unlikely to improve. Speaking on his Money Podcast on Sunday, Mr Lewis told listeners: "We're going to see easy access rates, both the ones being offered and your existing accounts, coming down. "Fixed rate savings tend to factor in future interest rates, so they're already lower than the easy access interest rates as they've factored in much of the [Bank of England] cuts. But here's the key thing. If you're looking to fix, I would be fixing today." Elaborating on how savings providers manage fixed rate savings accounts, Mr Lewis explained that they offer a set tranche – for instance, £5million at 4.6%. Once that amount is reached, the provider will reassess and potentially adjust the fixed rate based on new market conditions. Mr Lewis pointed out: "So, you may be able to get in now before the rate drops and they reassess based on the new information. "And of course, because it's a fix, your rate is locked in." Fixed rate savings accounts offer savers the chance to lock in an interest rate for a defined period, typically from one to five years, although they generally do not permit withdrawals until the term concludes. Financial expert Mr Lewis advised: "The safest bet is to [fix] today. And also as a general point, analysts are predicting that interest rates are going to come down quite substantially over the next year. "If you're risk-averse to rates going much lower and you don't need access to the money, then the safest thing to do if you've got savings is to lock it away in the highest rate fix you can get right now, which will protect you from interest rates dropping." Furthermore, he warned: "I can't promise anything, we live in such an uncertain world, but the risk-averse thing now is if you've got savings and you want to keep a higher rate, would be to lock them in on a fix." The financial markets anticipate at least two additional cuts to the Bank of England Base Rate before this end of the year, reports the Express. Moneyfactscompare lists the leading fixed rate options currently available. Top one-year fixed rates FirstSave's 1 Year Fixed Rate Bond - 4.5% AER/gross Close Brothers Savings' Fixed Rate Bond - 4.47% AER/gross Cynergy Bank's Fixed Rate Bond - 4.4% AER/gross Top two-year fixed rates GB Bank's 2 Year Fixed Rate Bond - 4.43% AER/gross Secure Trust Bank's 2 Year Fixed Rate Bond ( - 4.42% AER/gross Oxbury Bank's Personal 2 Year Bond Account (Issue 28) - 4.4% AER/gross Top five-year fixed rates Birmingham Bank's 5 Year Fixed Rate Bond (Issue 20) - 4.43% AER/gross Secure Trust Bank's 5 Year Fixed Rate Bond ( - 4.42% AER/gross GB Bank's 5 Year Fixed Rate Bond - 4.4% AER/gross.
