Savers urged to act before Bank of England review next week

With the Bank of England's interest rate review approaching on September 19, BBC finance expert Laura Pomfret has advised savers to reassess their ISAs. She emphasized the importance of taking a 'money minute' to ensure that individuals are maximizing their savings potential before any potential changes in interest rates occur. Currently, the base interest rate stands at 5%, following a recent cut from 5.25% in August, marking the first reduction since 2021. Pomfret highlighted that the current interest rate environment is favorable for savers, urging them to explore options that could yield better returns. She mentioned a specific product, the Santander ISA, which offers a fixed rate of 4.62% and requires a minimum deposit of just £500. This account is particularly appealing due to its accessibility through an app and its flexibility, allowing savers to start with as little as £1. The economic landscape has shown signs of stagnation, with recent data indicating no growth in July. This stagnation raises the possibility of an interest rate cut, although many economists predict that the Bank of England will likely maintain the current rate during the upcoming review. As banks typically adjust their savings rates in response to changes in the base rate, the recent cut has already led to a decrease in the interest rates offered on savings accounts. Given these circumstances, it is crucial for savers to act promptly to secure the best possible rates for their savings. With the potential for further changes looming, taking proactive steps now could lead to better financial outcomes in the near future.