Stability is now the key word for savers

After the first Bank of England base rate cut since they started increasing in 2021, the savings environment has changed. Savers have a closing window to secure the best deals before rates are cut further. 
Furthermore, acting quickly while still thinking longer term is now critical to making the most of your money, according to Adam Thrower, Head of Savings at Shawbrook. 
“Over the past few months fixed term bonds and ISAs have remained by and large unchanged in terms of interest rates. However, with the Bank of England cutting the base rate it is very likely that now isn't the case. With declines on the horizon, locking in now while rates remain competitive can make a significant difference.” 
To help make the most of your money, Adam has provided his top tips to combat the rate reductions.

It can be all too easy to use the bank you’ve always had a current account with. However, by considering specialist banks who have now been around for over a decade, and are as secure as any mainstream bank, you will be more likely to find a better deal. Ensure any provider you are looking to open an account with is FSCS registered as this will protect your cash savings up to £85,000.

There is no getting away from it, rates will be coming down steadily over the next few years if the base rate tracks this way too. However, by locking in a longer-term fixed rate now, you could hold onto higher rates for longer and potentially earn higher than inflation returns for years to come. This means your savings will continue to grow in real terms. 

Recent data from CACI showed that there were over six million savings accounts at risk of tax, doubling in just a year. With rates reducing, it is even more important to make sure that you aren’t setting yourself up for a further deduction in the form of tax. Make sure to use ISAs to save up to £20,000 per year tax-free. 

Life is busy and it’s easy to forget when a fixed-rate savings account might have matured, or an introduction rate has expired. Block out a bit of time to review where you have your savings and set yourself reminders if it’s due to mature later in the year. Failing to move a matured fund could result in a loss of interest so take a moment to make the most of your money.