Derin Clark

Derin Clark

Online Reporter
Published: 26/03/2020

Today the Bank of England announced that it held base rate at 0.10%, while yesterday the latest Consumer Price Index (CPI) showed that inflation fell from 1.8% to 1.7% during February.

While savers will welcome the news that inflation has fallen, there are still few savings accounts that are able to beat 1.7%. In fact, our research has found that on the day the inflation figure was revealed, just 36 fixed rate bonds could match or beat inflation and of these, just 26 could beat inflation. In addition to this, no easy access or notice accounts can currently match or beat inflation.

Along with the inflation figures, today it was announced that the Bank of England has held base rate at 0.10%. This announcement comes just after two unexpected consecutive base rate cuts in the previous two weeks. On the 19 March 2020, the Bank of England cut base rate from 0.75% to 0.25% and just a week later it was cut again from 0.25% to a record low of 0.10%. These cuts were made in response to the current economic crisis caused by the Covid-19 outbreak.

The savings market has already reacted to the cut in base rate, with average savings rates falling on all products within the savings and ISAs charts. However, there is hope for savers, as there are still some competitive rates available in the charts. As Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “For those willing to shop around and keep a close eye on the top rate tables, there are still some competitive options available. Savers may want to consider some of the challenger banks and less familiar brand names or, if they are able to lock into a fixed rate account for a period of time, then that might be a route to secure the highest available returns. However, in an ever-evolving market, they would do well to act quickly and secure an account before it is withdrawn.”

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