InformativeWhen Will Savings Interest Rates Rise? What To Do With Your Money

In this blog, we will:

• Tell you whether or not interest rates are predicted to rise again
• Why interest rates have continued to rise in the last few months
• How to make the most of your money

When Will Savings Interest Rates Rise Again?

The Bank of England’s Monetary Policy Committee is responsible for reviewing the interest rates and, based on the economy, will decide on whether or not to increase, decrease or maintain them. Over the course of their last 12 meetings, The Bank of England has been steadily raising the interest rate. Recently, during their meeting in May of this year, The Bank of England raised the interest rate from 4.25 to 4.50%. This has left many citizens wondering if or when will savings interest rates rise again.

The Bank of England is expected to meet once again on the 22nd of June to review the interest rate. It’s expected to continue to rise throughout the course of the year. Some analysts predict that the UK interest rate is forecast to reach a staggering 5% by summer, warning borrowers to prepare themselves for an increase in their mortgage payments and a greater return for those with a savings account.

Why Is The UK Interest Rate Forecast To Continue Rising?

The Bank of England is grappling with a persisting problem…the surging inflation rate. Currently, the UK is sitting with a worrisome 10% inflation rate. To curb this The Bank of England increases the interest rate in the hope that this will discourage the public from spending. Although, despite the energy prices falling, the inflation rate remains high as food prices skyrocket. The Bank of England plans to lower the inflation rate to 2% by the end of the year but some analysts believe that this may be a pipe dream when looking at the current double-digit inflation rate.

What To Do With Your Money In Light Of These Interest Rate Predictions

When looking at the UK interest rate forecast, you may be left wondering how you should respond to these interest rate predictions. Here at Love Discount Vouchers, we understand that not everyone is a finance analyst and that trying to figure out what to do with your money during these trying times can be overwhelming, so we’ve taken the liberty of doing the research for you and found a couple of ways you can work around the rising interest rates.

• Open a savings account - When the interest rate goes up so does your savings account earnings. We recommend taking advantage of the UK interest rate forecast by cashing in on the interest you can earn on your savings. Nationwide offers a variety of savings accounts that can be tailored to suit your needs, plus if you use a Nationwide promo code you can get a discount on any policies or insurance you take out with your account.
• Seek financial advice - Those with a mortgage or a loan often suffer when the interest rate goes up as it usually entails a rise in the price of their repayments. If you’re worried the interest rate predictions may leave you in a tight spot financially, then we recommend seeking the expert advice of a financial advisor. HSBC is a good place to start. They offer a broad variety of financial advice options that can cater to any situation. Feel free to use one of our HSBC promo codes to help you save on your financial plan.

Make The Most Of The Interest Rate Predictions

While the UK interest rate is forecast to continue rising, with our guide you have all the answers you need on what to do with your money in light of these interest rate predictions. If you’re wondering where you can find out the latest news on when will savings interest rates rise again or perhaps you’re just looking for some money-saving tips, feel free to check out our other blogs.