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People with money in a savings account urged to check it before new base rate announcement

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dailyrecord.co.uk

The Bank of England is set to announce the new base rate on Thursday, August 1 and financial expert Lucinda O’Brien is urging everyone with money tucked away in a savings account to check it now to make sure they’re getting the best return for their cash before any changes are made.

The savings account expert at money.co.uk is warning that the base rate could drop in the next few days, which will have a significant impact on savings rates.

She explained: “Interest rates on savings accounts have been consistently high this year, as the base rate remained at 5.25%.

The base rate has been stuck at this point since August 2023, after we saw consecutive rises from December 2021. Staggeringly, the last cut in the base rate was in March 2020.”She continued: “These increases and subsequent stability indicated good news for savers, as providers have offered rates above 5% - which is significantly higher than the current inflation rate of 2%.”Lucinda added: “On the other hand, the base rate has pushed up mortgage rates and caused anguish for homeowners.

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