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The Bank of England held rates at 5.25% in September, after 14 rises on the bounce. Does that mean that rates are about to fall, and if so, is now the time to bag a savings deal? Here are the top rates on easy-access, fixed-term and regular accounts right now.
After over a decade of low rates, savers can more from their money. You could get more than this if you are willing to lock your cash up for longer.
Why are savings rates rising?
The Bank of England has been increasing the base rate of interest since December 2021 in an attempt to bring inflation down. Back then the rate was 0.1% but it is now 5.25%.
The base rate or ‘bank rate’ is what determines what we pay to banks for borrowing money, in the form or mortgages and personal loans, or what they give to us on our savings.
When the base rate rises, interest rates on savings accounts are supposed to follow. And they have, but not as fast as mortgage rates have been rising.
TYPES OF SAVINGS ACCOUNT
How to get the most interest on your savings
Even if savings rates do nudge up, they aren’t likely to get anywhere near beating inflation. But it is important to be vigilant with your savings.
Make sure you:
Shop around for the best savings rates
Move your money to a better rate when your current rate ends
Check whether your cash is protected by the Financial Services Compensation Scheme
Check that your provider is authorised and regulated by the Prudential Regulation Authority and that it is regulated by the Financial Conduct Authority
Think about the different savings accounts options available
Tip: Regular savings accounts usually offer the highest interest rates, but you are often restricted on the amount of cash you can put in each month.