People who have a bank balance of £11,000 will be handed free £480

Savers are being recommended to take advantage of high interest accounts after the central bank's Monetary Policy Committee (MPC) overwhelmingly voted to keep the base rate at five per cent.

Savers have been told to switch their accounts after today's Bank of England interest rate decision. Savers are being recommended to take advantage of high interest accounts after the central bank's Monetary Policy Committee (MPC) overwhelmingly voted to keep the base rate at five per cent.

A survey of economists and financial experts conducted by finder.com found that half of respondents believe interest rates will fall to 4.75 per cent by the end of the year. Liz Edwards, finder's money expert, said: "If you’ve got money stashed away in your savings, today's decision serves as a nudge to take advantage of higher interest rates on fixed-rate accounts.

“Research from finder previously revealed that eight of the 16 biggest banks in the UK have already lowered their easy-access savings account rates since the Bank of England cut the base rate at the beginning of August.

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"It likely won’t be long before the rest follow suit, particularly with many factoring in the next rate cut expected to happen in November." Ms Edwards added: "There are currently some great deals that can help your money go further, and if you fix now you can guarantee your returns even once the base rate has fallen."

She recommended Zopa's Two-Year Smart ISA and NatWest fixed-rate One-Year ISA which are offering 4.4 per cent and 4.3 per cent, respectively. The money expert shared: "The average person in the UK has £11,185 in savings, and with this NatWest account you could earn more than £480 in interest on your savings in just 1 year."

John Dentry, the product owner of the CASS at Pay.UK, said: "While this may stabilise falling rates on savings accounts, banks are still having to find new ways to compete for customers. This is why we’re seeing some of the highest switching levels ever recorded, often processing over 100,000 switches a month."

The Bank of England's next base rate announcement will take place on November 7, 2024.