Best savings accounts you need to apply for NOW as experts warn that you ‘need to act quickly’
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SAVERS are being urged to act quickly to secure the best deals as competition heats up in the savings account market. Several providers offer interest rates of up to 8%, significantly exceeding the national average. However, Caitlyn Eastell at Moneyfactscompare.co.uk warns that these deals may be short-lived.
Challenger banks, known for their agile pricing strategies, may pull their top rates quickly. Caitlin said: "Providers may be launching the final push towards meeting their end-of-year targets, so it is possible that further rate adjustments are yet to take place.
"Savers should avoid waiting to pull the trigger on any enticing deals until the new year to avoid disappointment.". This urgency is heightened by the Bank of England's potential interest rate cut in February 2025, which could further depress savings rates.
The Bank's base rate was maintained at 4.75% yesterday. However, money markets are betting that interest rates will fall to 3.5% by the end of next year. The base rate directly influences the interest rates banks offer on products such as mortgages, credit cards, and savings accounts.
When the Bank's base rate falls, banks tend to lower interest rates on certain savings accounts. Average savings rates have already been declining over the past 12 months. Typical easy access rates stand at 2.88%, down from 3.19% in 2023, according to Moneyfactscompare.co.uk.
Similarly, the average one-year fixed bond rate has decreased from 4.31% to 4.1% since December 2023. That's why ensuring you're getting the best rate on your savings is crucial, especially given the possibility of further base rate cuts by the Bank of England in February.
