Savings rates across the UK have fallen to their lowest level in over a year as lenders anticipate further cuts to base interest by the Bank of England.
Average one-year fixed rate bonds in October offered the lowest since June 2023 at 4.31%, according to Moneyfacts.
Longer-term fixed bonds rates had fallen to the lowest level since March 2023 in the meantime, the comparison site added, averaging 3.93%.
This followed three consecutive monthly declines, Moneyfacts finance expert Rachel Springall said.
“More drops could well be on the way due to expectations that the Bank of England will cut base rate before the year-end,” she noted.
Average rates on notice and easy access accounts were also said to have hit their lowest since October last year, at 4.21% and 3.07% respectively.
It comes despite an increase in average mortgage rates over every day of last week, including at the likes of NatWest Group PLC (LSE:NWG), Barclays PLC (LSE:BARC) and Lloyds Banking Group PLC (LSE:LLOY)’s Halifax.
“As we draw nearer to the end of the year, now is a crucial time for savers to review their existing portfolio,” Springall added
“Providers will no doubt be assessing their market positions over the coming weeks and will be eyeing up the upcoming Budget to see how this may impact future rate expectations.”