Get your savings account sorted before rates fall

Anyone that wants to ensure that they fix their savings interest rate as high as possible is being urged to take action before interest rates fall further, as they are expected to over the coming months. Once interest rates fall this will affect the rate at which savers can fix their accounts, and experts predict that rates will fall in February as well as once more before the middle of the year.

Some banks and building societies have already cut the interest rate paid on one and two fixed rate accounts following the interest rate cut in December, so consumers may already find it more difficult to find a competitive fixed rate account. The interest rate cuts will help borrowers with variable rate loans but will see savers lose out on the returns that they receive on their savings.

Savers that want to try and get the best rates on fixed rate savings accounts are advised to compare different accounts from a number of lenders in order to find one that offers the most competitive rates and suitable terms and conditions. There are still some competitive deals around, but these are likely to disappear once interest rates start to fall again.

The Bank of England decided to leave interest rates on hold after the January Monetary Policy Committee meeting, despite concerns over a slowdown in the economy. Officials state that this is because the central bank also has to consider the risks of rising inflation.