Ahead of the base rate announcement on Thursday, Lucinda O'Brien, a savings accounts expert at money.co.uk, has issued a warning to UK bank account holders.
She advises that they need to act before August 1 to secure high interest rates on their savings. O'Brien told Birmingham Live: "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. Astonishingly, the last cut in the base rate was in March 2020. "The steady increases and subsequent stability have been good news for savers, with providers offering rates above 5% - significantly higher than the current inflation rate of 2%.
However, the base rate has also driven up mortgage rates, causing distress for homeowners. Therefore, a reduction in the base rate would be warmly welcomed from this perspective." She said for savers, it's now a tense wait ahead of the next Bank of England meeting on Thursday.
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