Fixed savings rates are at their lowest level in more than a year as interest rates continue to fall.
The average one-year fixed rate fell to 4.31 per cent, its lowest point since June 2023, according to data from Moneyfacts.
Meanwhile, the average longer-term fixed rate fell to 3.93 per cent, its lowest point since March 2023.
It comes as the Bank of England is expected to cut interest rates to 4.75 per cent when the Monetary Policy Committee (MPC) meet in November.
Savings rates tend to fall when there are expectations that the base rate will fall.
Rachel Springall, finance expert at Moneyfacts, said: “Savers looking to secure a guaranteed return may be disappointed to see average fixed rates on bonds and Cash ISAs drop to their lowest levels in over a year.
“Fixed bond rates have now fallen for a third consecutive month and more drops could well be on the ,way due to expectations that the Bank of England will cut base rate before the year ends.”
Savers coming to the end of their fixed deal will find average rates are more than 1 per cent lower across one-year and longer-term fixed rates and Cash ISAs than a year ago.
Despite the rate cuts, product choice remains resilient across the market.
The average shelf-life of a fixed rate deal rose to 57 days, up from 51 in September, its highest level since March 2022.
Experts are encouraging savers to lock in better rates now before they fall further.
Springall added: “As we draw nearer to the end of the year, now is a crucial time for savers to review their existing portfolio. Variable rates have not been immune to rate cuts over the past few months, so savers should proactively move their pots if they are getting a poor return on their hard-earnt cash.
“Savers need to stay vigilant, as providers will no doubt be assessing their market positions over the coming weeks and will be eyeing up the upcoming Budget to see how this may impact future rate expectations.”
Best savings rates
Best one-year fixed deals
Union Bank of India (UK) Ltd – 5 per cent
SmartSave – 4.82 per cent
Monument Bank – 4.81 per cent
Atom Bank – 4.8 per cent
Best two-year fixed deals
Atom Bank – 4.6 per cent
JN Bank – 4.6 per cent
Union Bank of India (UK) Ltd – 4.6 per cent
Kent Reliance – 4.56 per cent
Best easy-access deals
cahoot – 5 per cent
Monument Bank – 4.87 per cent
Oxbury Bank – 4.87 per cent
Chetwood Bank – 4.86 per cent
