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Bank of England cut the interest rate – how to make more of your cash savings

The Bank of England (BoE) has cut the interest rate to 0.1% as an emergency measure following the coronavirus outbreak.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

This article is more than 6 months old

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

The Bank of England (BoE) has cut the base interest rate to 0.1%. This is the second emergency cut this month and takes the rate down to the lowest in history.

Banks are also getting access to £100bn in extra funding from the BoE, meaning they’re less reliant on savers’ deposits.

We expect banks to react quickly by slashing savings rates within the coming days and weeks. We have already seen some of the most competitive rates in the market fall this week.

You could limit the impact

One way to protect yourself could be through fixed term savings for money you don’t need just yet. Fixed rate products pay a fixed rate which means by locking in the rate now you won’t usually be affected by any falls in rates over the product’s term. However if rates were to rise during the term, you wouldn’t benefit.

You won’t be able to take your money out of fixed term savings until the product matures, but you’ll typically get a higher rate than instant or easy access savings.

An easy way to get great savings rates

Thankfully, you don’t need to scour the market for competitive savings rates. You can find a selection of products from different banks and building societies under one roof with Active Savings.

You can pick and mix easy access and fixed term savings products. There are also great rates to choose from, currently up to 1.53% AER/1.55% Gross* on a 3 year fix.

You’ll be able to access everything from one online account, and see all your savings alongside each other, making it easy to keep track of your cash.

It only takes a few minutes to get started.

Discover Active Savings

See our latest rates

This article isn't personal advice, but could help you make your own decisions so you can make more of your money. Inflation can reduce the spending power of money. Products available through Active Savings can be added or withdrawn at any time. Minimum deposit requirements apply to individual products.

*AER (Annual Equivalent Rate) shows what the interest rate would be if interest was paid and compounded once each year. It helps you compare the interest rates on different savings products.

Gross means the interest rate without any tax deducted. Interest is paid gross. You are responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue & Customs. Tax treatment can change.

The Active Savings service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). Hargreaves Lansdown Savings Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 with firm reference 751996 for the provision of payment services. Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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