‘Days left’ to lock in best savings rates in 15 years

Savers have been urged to lock in the best deals now as a shock pause on interest rate rises risks banks pulling offers within days.

The Bank of England surprised savers and economists on Thursday when it decided not to raise central interest rates for the 15th time in a row – keeping them at 5.25pc.

Following the Bank’s announcement, Money expert Martin Lewis used social media to urge savers to open long-term, fixed-rate accounts now, warning savings rates could drop soon.

He suggested savers should consider opening the best fixed-rate account now, but deposit no funds. This would allow a saver to lock in a rate, without committing any savings straight away and allowing them to opt for a better deal if any appear. If lenders decide to keep rates high, savers can easily close the account, he said.

A few hours before the interest rate announcement, Nationwide unveiled a 8pc offer for its regular savings account for existing customers. But these deals are unlikely to stick around for much longer, according to Rachel Springall of Moneyfacts.

The average easy access account pays about 3.08pc, while the top easy access rate on the market is 5.05pc from challenger bank Paragon, according to data from Moneyfacts. The best one-year fix is NS&I’s 6.2pc. Rates on Isas are also high. The rate on an easy access Isa is 4.75pc with MoneyBox, and as high as 5.60pc with Secure Trust. Although inflation eased last month to 6.7pc after a high of 11.1p, banks have only been offering improved deals since the Financial Conduct Authority and MPs intervened during the summer.

In July, the regulator launched an investigation into lenders following concerns banks and building societies were not passing on fair increases to savers. These deals are still far lower than when the Bank Rate was this high over a decade ago – so savers will not see rates better than what is being offered by lenders for much longer.

Alastair Douglas, of TotallyMoney, said: “There are some good deals out there — but you’ll need to move fast.”