The Bank of England is set to announce a potential change in interest rate this week. The Monetary Policy Committee (MPC) will meet on Thursday, November 7, to determine whether to increase, decrease or maintain the policy rate, which currently stands at 5%.

The country’s banks use this base rate to set their own mortgage rates for customers, as well as other variable repayment loans. Therefore, any change to the base rate will have a direct impact on some homeowners’ finances.

Markets are expecting a rate cut. “They will cut back almost for sure,” said Jens Larsen, an economist at consultancy Eurasia Group. FT Monday. “The bank finds itself with room to reduce its rates” due to the easing of inflationary pressures, George Buckley, economist at the financial services group Nomura, also told the Financial Times.

In July 2023, the Financial Services Authority published its review of the cash savings market, urging banks and building societies to offer better deals and pass on Central Bank rate changes to savers. Despite this, research suggests that many savers could still see their savings eroded by inflation, currently at just 1.7%.

The experts at TotallyMoney have compiled the table below, highlighting 20 of the “worst” savings accounts for those looking for unrestricted deposit and withdrawal options.

Alastair Douglas, CEO of TotallyMoney, advises: “If you have savings, check them carefully. interest rate as soon as possible. Indeed, some pay less than 1% and the average rate for one of the big five banks is currently 1.74%. However, it is possible to lock in a rate of up to 4.86%, meaning you could earn a lot more interest.

He adds: “So shop around and find an account you can bet on. You’ll sometimes find that smaller banks try harder to win over your business, and often provide better service and pay better rates. And as part of the financial services compensation system. , up to £85,000 per person per bank, building society or credit union, so you shouldn’t worry too much if the best deals aren’t from the biggest brands.

Douglas concludes: “Loyalty doesn’t pay, but a good rate can. If you’re looking to make more money, shop around for the best deals and consider all your options. your money in an ISA or account which requires 90 days’ notice. Just make sure it suits you and meets your needs.

TotallyMoney has identified three savings accounts that can beat inflation and allow savers to get a decent return on their money.

The Bank of England predicts that inflation could rise to 2.5% by the end of the year, which could accelerate the depreciation of savings. Calculations show that for an average saving of £17,365, someone using the easiest to access account (4.86%) could earn £844 in annual interest.

This is compared to just £302 with the average Big 5 bank (1.74%), or £208 with a rate of 1.2%. Most people (54%) keep their savings in savings accounts, building societies or National Savings and Investments (NS&Is), 28% in cash ISAs and 26% in national savings and investment accounts. premium bonds.

However, 37% of savers have not switched accounts in five years, 27% have never switched accounts, while only 52% of savers have switched or are considering switching accounts.

Andrew Hagger, a personal finance guru from Moneycomms.co.uk, insists: “Opening a new savings rate is very easy these days, so there’s no excuse for entrusting your kitty to a provider who offers a raw offer. Go online and check. your current savings rate today, – you might be in for a shock because your best buy deal from last year might now be just average, or even worse. » He adds: “The last two years have been much better if you did!” a half-decent savings balance – but don’t be afraid to switch providers to get a really great rate on your money. It’s definitely worth taking a look at the Best Savings Buys tables every 6 months or so, just to make sure your rate is the same. I’m not behind.”