Savers urged to lock in rates as easy-access rates hit two-year low ahead of potential Bank of England base rate cut.

Savers are being urged to lock away their savings now to secure top rates ahead of a likely Bank of England base rate cut next month. Easy-access rates have plummeted to a two-year low, with the average rate now at 2.68% and the average Isa rate at 2.92%. Fixed-rate accounts, however, are holding strong with one and two-year bonds seeing the biggest rate hikes in 11 months.

Investors are being advised to secure top savings rates now ahead of a likely Bank of England base rate cut next month. The recent unemployment data and inflation trends have led to speculation that the Bank of England will lower interest rates in August [1].

The Office for National Statistics (ONS) reported that the UK jobs market continued to cool in May, with unemployment rising to 4.7% in the March to May period. This increase, combined with slowing pay growth, has prompted expectations of an interest rate cut by the Bank of England [1].

The latest inflation figures, which showed an annual rate of 3.6% in June, have also contributed to the anticipation of a rate cut. The ONS attributed the rise to higher food prices and fuel costs [1]. Despite the inflation slowdown, the Bank of England remains cautious, with a 89% chance of a rate cut in August [1].

Easy-access rates have plummeted to a two-year low, with the average rate now at 2.68% and the average Isa rate at 2.92%. However, fixed-rate accounts are holding strong, with one and two-year bonds seeing the biggest rate hikes in 11 months [2].

Savings experts are urging savers to lock away their funds now to secure the best possible rates. While the easy-access market has seen a decline, fixed-rate accounts offer more stability and potentially higher returns [2].

The top one-year bond now stands at 4.51% AER, while the two-year bond offers 4.43% AER. These rates are among the highest seen in the past year and are likely to remain attractive as the Bank of England continues to monitor the economic conditions [2].

Savers should also consider notice accounts, which offer competitive rates but require a notice period before accessing funds. The top 14-day notice account offers a rate of 4.24% AER, while the 60-day notice account provides 4.52% AER [2].

In conclusion, savers are being advised to act quickly to secure top savings rates before the anticipated Bank of England base rate cut. Fixed-rate accounts, in particular, offer attractive returns and stability in the current economic climate.

References:
[1] https://uk.finance.yahoo.com/news/bank-of-england-interest-rate-cut-bet-august-090959132.html
[2] https://moneyfactscompare.co.uk/news/savings/best-uk-savings-rates-this-week/