As the base rate falls, some savings providers, including Monzo, have chosen to lower the interest rates on some savings accounts.
A lower AER means you will have less money in your savings account over a year because it indicates a lower rate of interest being paid on your savings.
The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs.
This means all credit card customers will soon benefit from a 0.25% reduction in their purchase interest rates, as well as the repayment rates applied to cash withdrawals.
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
