UK banks cut interest rates, savers urged to seek better deals

This week, the Bank of England decided to keep its base interest rate steady at 5%, following a reduction in August. Economists anticipate another cut to 4.75% at the next meeting on November 7, alongside potential further reductions in the following year. This decision comes amid uncertainty surrounding the upcoming budget on October 30, which may influence future monetary policy. In light of the Bank's decision, several banks, including TSB and NS&I, have announced cuts to their interest rates, affecting both easy-access savings accounts and fixed-rate bonds. The average one-year fixed-rate savings bond has decreased to 4.43%, down from 4.63% in August and significantly lower than the 5.34% rate from a year ago. Experts are advising savers to act quickly to secure the best savings deals available, as rates are expected to continue declining. Challenger banks are highlighted as offering competitive rates, and savers are encouraged to explore options beyond traditional banks. Additionally, with the potential for tax changes affecting ISAs, savers who have not fully utilized their ISA allowance are urged to consider their options. The number of individuals expected to pay tax on savings has risen significantly, indicating a growing need for savers to be proactive in managing their finances.