Which? The best savings accounts to beat inflation
May 29, 2025
Matthew Jenkin from Which? Money and Amy Knight, Lead Writer at NerdWallet UK, dive into the effects of the falling Bank of England base rate amid rising inflation. They discuss how banks are adjusting savings rates and the importance of finding accounts that preserve purchasing power. The conversation highlights various savings options, including fixed and instant access accounts, and offers strategies to maximize returns in today’s economic landscape. Tune in for expert insights that empower your financial decisions!
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Base Rate Impacts Savings Rates
- The Bank of England base rate influences the interest rates on savings accounts, especially instant access accounts.
- When the base rate drops, savings account rates often decrease accordingly, impacting savers' returns.
Savings Rates Anticipate Base Cuts
- Savings rates often reflect expected base rate changes before they happen.
- Some banks reduce their rates in anticipation of official cuts, meaning current rates may already reflect future drops.
Smaller Banks Lead Rate Cuts
- After the latest cut, only 7% of instant access accounts reduced their rates, fewer than previous cuts.
- This slow reaction came mainly from smaller banks with market-leading rates, where some cuts were substantial.