Martin Lewis issues new warning to stop savers losing out again
If you're lucky enough to have some money put away, it makes sense to get the best rate you can on it.
And for the past year or so, that's been relatively straightforward – with the top-paying banks and rates remaining broadly the same.
Until last week, that is – and the changes have got Martin Lewis a bit worried.
"The mood music for savers isn't good," he told readers of MoneySavingExpert.com's weekly newsletter .
He pointed out problems with the economy have seen interest rate predictions fall, that led to fixed-rate savings dropping and now even easy access rates are falling.
Rachel Springall, finance expert at Moneyfacts.co.uk , said: "Within just a few days, Marcus by Goldman Sachs cut its 1.49% gross (1.50% AER) deal, and Ford Money and Cynergy Bank withdrew their deals to new customers, with the latter now reintroduced with a lower rate of 1.45%."
Martin added: "The worry (though no one knows) is this signals the start of a race to the bottom."
It's not the first time, either.
"Similar happened in 2016. Seemingly no bank wanted to top the best buys, scared of the huge wads desperate savers pumped in when they did. Rate cut followed rate cut," Martin said.
It all ended with the best-paying easy-access deal falling to 1% while the top one-year fixed-rate deal was 1.4%.
And that means, even though rates have come down, it could be the time to fix.
"It's somewhat perverse to consider that as fixed rates have dropped, you may want to lock in," Martin said.
"Yet there is a realistic chance they could get lower still, so that in a few months we look back on today's deals and think they're pretty decent.
"Sadly I don't have a crystal ball, so I can't say this is what'll happen, but if you're worried about plummeting rates and want certainty, it may be worth hedging toward fixing. "
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