Bank of England warning issued to people with £50 in savings account

James Rodger
·2-min read
Savers have been told a Bank of England interest rate decision being taken on Thursday (September 19) will impact them and where they keep their cash.
-Credit: (Image: Reach Publishing Services Limited)


People with a savings account have been warned to move their money to the best-paying accounts. Savers have been told a Bank of England interest rate decision being taken on Thursday (September 19) will impact them and where they keep their cash.

According to moneyfactscompare.co.uk, the average rate for longer-term fixed bonds, lasting over 550 days, has dropped to its lowest point since April 2023, now standing at 3.99 per cent. The average one-year fixed bond rate has also fallen this month to 4.30 per cent.

That is down from 4.43 per cent in August. Additionally, the average easy access rate has decreased month-on-month to 3.07 per cent while the average notice rate has declined to 4.23 per cent, offering 1.16 per cent more than the average easy access rate.

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Rachel Springall, finance expert at moneyfactscompare.co.uk, said: "Savings rates fell across both variable and fixed sectors in August, which is the first time all rates dropped since the start of 2024. The downward path was perhaps an inevitable direction after the Bank of England base rate was cut, but it can take a few weeks for providers to make a move in response.

"One area of the savings market to take a hit has been easy access accounts, seeing the biggest month-on-month drop since April 2024. Those savers who have not reviewed their savings accounts would be wise to do so, to ensure they are still paying a competitive return."

Sarah Coles, head of personal finance at Hargreaves Lansdown, added: "There's a big difference between the average rates around and some of the best on the market. If you walk away from the high street giants and try the online banks and cash savings platforms, you can earn far more than 4% across the board – and you can still get 5% on a one-year bond."

The best fixed rate currently offered is Mizrahi Tefahot Bank's one year fixed bond, which pays 5% (but requires a minimum investment of £1,000). Atom Bank's one year fixed bond offers 4.85% back to those with less money to save.

This only requires a minimum deposit of £50.

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