With the Bank of England’s base rate decision taking place next Thursday (7th August), Claire Jones, Head of Strategic Partnerships at Flagstone, the UK’s largest savings platform, is urging savers to act now instead of later.
“We’re seeing more savers opt for fixed-rate products as they take action against stubborn inflation and the risk of it eroding real returns over time. In today’s environment, securing a guaranteed return is becoming increasingly attractive – and, for many, a sensible move.
While base rate changes are often priced into mortgage offers ahead of time, savings rates – particularly for instant access accounts – tend to react much more quickly, sometimes within hours of a decision. That’s particularly relevant now, with some instant access accounts still offering up to 50 basis points more than the best fixed-term rates. But if the current hold/cut pattern continues, as it has in the last 12 months, and another cut follows in August, those instant access rates are likely to get hit quickly.
For savers who’ve been sitting on the fence, this could be the moment to act – either preemptively or shortly after the Bank’s decision – to lock in a competitive rate before the market moves.
