 Martin Lewis has issued an urgent warning to savers after the Bank of England voted to maintain interest rates. The money saving expert has urged savers to open a top fixed rate account today as following the Bank of England's decision to maintain interest rates at 5.25%. He said: 'It's possible fixed rate savings may shave down their rates at speed (as they're based on longer term predictions of interest rates). 'If so, and you were looking to lock-in a fix, you'll want to open a top fix this minute as the rates could drop even later by today, certainly if it does happen by later this week.' He added savers could hold off paying money into the account straight away in case rates 'go the other way'. 'Tactic to play it both ways: open the fix today, but don't fund it (you've usually 7 to 14 days to do that),' Mr Lewis said. 'Just hold it so you've got it available, and you can wait and see what happens to rates. 'If they go the other way, just don't fund the facility you've opened now – that's not a problem.' The Bank of England had largely been expected to hike interest rates up a 15th time (Picture: PA) After raising interest rates 14 times in a row, the central bank's policy-makers voted to keep the rate the same in a razor-thin 5-4 vote today. This is the first time since November 2021 that borrowing costs have been kept steady, though the current rate remains the highest since early 2008. The decision by the Bank's Monetary Policy Committee came a day after data showed inflation unexpectedly cooled slightly in August. Interest is what people pay for borrowing money as well as what banks pay people for saving money with them. The Bank of England's base interest rate shapes how much interest banks can charge people or pay on their savings. Get in touch with our news team by emailing us at webnews@metro.co.uk.){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Martin Lewis has issued an urgent warning to savers after the Bank of England voted to maintain interest rates.
The money saving expert has urged savers to open a top fixed rate account today as following the Bank of England’s decision to maintain interest rates at 5.25%.
He said: ‘It’s possible fixed rate savings may shave down their rates at speed (as they’re based on longer term predictions of interest rates).
‘If so, and you were looking to lock-in a fix, you’ll want to open a top fix this minute as the rates could drop even later by today, certainly if it does happen by later this week.’