MoneySavingExpert's Money Tips Email

Martin: 'SAVERS... the Bank of England has cut UK base rates yet again, with further cuts predicted, so it may be time to fix your savings to lock in today's 4.5% rates!'

Last week, the Bank of England cut the UK base rate from 4.5% to 4.25%, and this could be a tipping point for savers. Over the last year the top easy-access (variable) savings rates... where you can put money in and take it out when you like... have whooped the pants off the top fixed savings... where you lock your money away in return for a set interest rate. While it's partially been caused by a price-war among challenger banks (likely to soften now as ISA season ends), much is due to differences in how rates are set.

• Fixed rates are set based on long-term views of interest rates. The rate new fixes are offered at tends to move, in simple terms, with the market's long-term view of interest rates, not current UK base rates (as variable savings do). So, fixes are currently lower partly as UK rates are predicted to drop further - we spoke to four City analysts, who all expect rates to be 3.25% or 3.5% at the end of 2025, and one even says they'll go as low as 2.75% in the first half of 2026.
  
  That means the current top fixed rates are higher than where the UK base rate is predicted to go. If those predictions do come true, today's 4.5% fixes may rapidly end up paying more than top future easy-access rates (plus they give the boon of certainty). So if you're concerned, the safest option, based on the mood music, is to lock in a rate by putting some savings in fixes... that's not me saying it'll definitely be a win, just that it's a strong risk-averse option.
  
  
• The highest rates are easy access (variable) - but these are likely to drop. Before we get on to fixes, for benchmarking let's speedily do top easy-access rates. There have been no announcements yet as to whether they'll be cut on the back of the UK rate cut, but if they follow past trends many will likely drop c. 0.25% points. All %s are AERs.
  
  - Normal Savings: App-only Sidekick* is 4.76% (min £5k), but has a slightly complex structure. Top online account is Chetwood 4.52%. Of bigger names, Marcus (owned by Goldman Sachs)* is 4.3% and Yorkshire BS* is 4.1% (min £1). Cahoot (owned by Santander) at 4.41% (min £1) pays more, though it only lasts a year, then matures and is moved to a likely low interest rate account. Rates do change so check our full, updated top savings rundown.
  
  - Tax-Free Cash ISAs: Cash ISAs are just savings accounts you can put up to £20,000 per tax year in and the interest is never taxed. If it's likely you'll pay tax on some savings interest now or in future (see how savings are taxed), they're well worth using. As Trading 212* at 4.83% beats top normal savings, it's worth considering even if tax isn't an issue. Of bigger names, there's Marcus (owned by Goldman Sachs)* at 4.3%. See full, updated top easy-access cash ISAs for more, including accounts with very short-term bonuses, which I've ignored here.
  
  
• A fix lets you lock in a rate to protect from possible future rate cuts. Here you lock your money away, without access (except fixed cash ISAs) in return for a guaranteed rate of interest. Even if you're unsure, you could open one now without funding it (most give you two weeks to put money in) then watch what happens to other rates to see whether it's worth it. If you then decide it isn't right for you, just don't put the money in. 
  
  

  Top fixed-rate savings (AERs)
  TERM	Top fixed savings Money can't be withdrawn	Top fixed cash ISAs Withdrawals allowed but interest penalties
  1yr	Conister 4.52% min £5k | Cynergy 4.5% min £1k Big names: Virgin 4.31% min £1 | NS&I 4.05% min £500	Santander 4.25% min £500 | Vida 4.25% min £100  Big name: Virgin Money 4.1% min £1
  2yr	GB 4.43% min £1k | Secure Trust 4.42% min £1k Big name: NS&I 4% min £500	Cynergy 4.17% min £500 | Castle Trust 4.17% min £1k Big name: Santander 4.1% min £500
  3yr	Secure Trust 4.42% min £1k | Birmingham 4.41% min £5k Big name: NS&I 4.1% min £500	Ford 4.2% min £500 | Secure Trust 4.16% min £1k Big name: Leeds BS 3.8% min £100
  5yr	Secure Trust 4.42% min £1k | Birmingham 4.41% min £5k Big name: NS&I 4.06% min £500	Secure Trust 4.16% min £1k | Castle Trust 4.15% min £1k Big name: Skipton BS 3.9% min £500

  
  As for how long to fix, well the first consideration is how long you can comfortably lock that money away. After that, it's about how much you value certainty - the more, the longer you should fix. In recent times, we'd seen longer fixes paying far less than shorter - now it's balanced out (likely indicating that the market thinks things will drop, then stabilise), which means fixing longer looks a better deal. But of course, no one knows how it'll look with hindsight.
  
  
• Is it better to fix in normal savings or a cash ISA? Normal fixed savings pay more, so as long as you don't/won't pay tax on savings interest, they win. Yet if you will or may in future earn over your Personal Savings Allowance of £1,000/yr interest for basic 20% rate taxpayers and £500 for higher 40% rate taxpayers, then fill up your cash ISAs as the interest is tax-free, which means, overall, you'll get more.
  
  Plus while normal fixed savings lock your money away, cash ISAs can't do that. They must allow you to access your cash, but they can charge an interest penalty of 90 to 365 days' worth of interest if you do. So if there is even a small chance you might need to dip in, a fixed cash ISA can be a handy get-out-of-jail-free card.
   
• CAN YOU BOOST INTEREST FURTHER? Some specialised options in our savings section pay even more...
  
  - 50% bonus for many on Universal Credit or Tax Credits. See Help to Save.
  - 25% bonus for first-time buyers aged 18 to 39. See Top Lifetime ISAs.
  - Earn up to 7.5% if you can save monthly. See Regular savings.
  - Prefer to invest? Higher returns, but more risk. See Stocks & shares ISAs.

FREE £165 at Amazon or Sainsbury's or M&S PLUS £10/mth Deliveroo cashback PLUS 4 airport lounge passes
Ending. Triple reward credit card: how to do it at max gain, no cost...

There's an Amex card targeted squarely at higher-spending middle Britain, with rewards at Amazon, M&S, Deliveroo & airports. Yet if it suits, play your card right and it's an easy way to grab extremely lucrative freebies...

• Free £165 shopping + Deliveroo cashback + airport lounge passes. The American Express Preferred Rewards Gold credit card (link goes via our 'eligibility & apply' calc so you can see whether you'll be accepted) has temporarily increased the points you get for signing up, making it a powerful deal for some. This is only available for those who haven't had an Amex card within the last two years...
  
  

  Only do this if you'll always pay the card off IN FULL each month, preferably by Direct Debit (so you don't miss it), so it's interest-free. Otherwise the 87.3% rep APR interest dwarfs the rewards.

  
  1) Bonus points worth £165 at Amazon, M&S or Sainsbury's if you spend £3,000 within 3mths. Open the card before 27 May and spend a total of £3,000+ over the first three months (so about £1,000 a month of family spending) and you can currently get 30,000 bonus points (normally it's 20,000) on top of the standard one point per one pound spent. So hit the trigger and you'll have at least 33,000 points, enough to be exchanged for...
  
  - £165 in Amazon, M&S or Currys vouchers, or Sainsbury's Nectar points
  - Or 33,000 air miles with Avios, Virgin, Etihad and other airlines
  - Or 49,500+ Hilton, Marriott or Radisson hotel points
  
  2) Plus two £5 Deliveroo cashbacks a month (worth up to £120/yr). Save this offer to your card (found under 'offers' in the Amex app or online banking) and use the card to pay for Deliveroo (min spend £5), and you'll automatically get £5 credit on two orders a month.
  
  3) Plus four free airport lounge passes a year (worth around £50 each). These should come within six weeks of acceptance, and you can use them in many airport lounges worldwide.
  
  
• Alert. The card is fee-free in year one, but £195/yr after. While the Deliveroo and airport lounge pass rewards renew each year, remember to cancel before year two if you don't want to pay the £195.
  
  
• When we say pay off IN FULL, we mean IN FULL, not nearly in full. The words IN FULL are Martin's catchphrase for a reason. If you spend £1,000 in a month and clear the card entirely, there's no interest. Spend £1,000 and pay off £999.99, and you usually pay interest on the whole £1,000, not just the 1p left.