Investec research found that nearly two out of five savers (37%) plan to switch more cash into fixed rate accounts to beat Bank of England base rate cuts
Ahead of the Monetary Policy Committee’s base rate decision tomorrow, Investec Save, anticipates a cut to the Bank of England base rate which it expects will lead savers to choose fixed rate products for their deposits as they seek to lock in the most attractive and advantageous returns (please see the attached press release). Rate cuts are also expected to continue in the second half of this year and into 2026.
Investec Bank’s economists predict that the Bank of England base rate, which currently stands at 4.25%, will reduce to 3.75% by the end of 2025. Investec expects rates to reduce further in 2026 settling at just 3% by the summer of 2026.
Investec Save’s research shows that nearly two out of five savers (37%) plan to switch their funds into fixed rate savings accounts this year in response to potential Bank of England base rate cuts. Those planning to put their cash into fixed rate accounts will on average switch £15,800 into fixed rate savings.
Phil Shaw, Chief Economist, Investec, said: “We predict a higher number of savers to move their money into fixed rate products as they look to secure attractive returns before anticipated further cuts to the Bank of England base rate.
“The base rate has already been cut four times since last summer, and we anticipate that it will fall further still in the second half of 2025 and into 2026. Savers are looking to act now to secure a higher rate and the peace of mind that their money is working hard for them.”
