Over two in five (44%) of savers with fixed rate accounts have already increased their savings into additional fixed accounts in anticipation of future Bank of England (BoE) base rate cuts, new analysis by Investec Save has shown.

Around a fifth (19%) of savers also revealed they had increased the amount of money deposited into fixed rate accounts by 30% or more.

Investec’s findings, based on study of 1,010 UK adults, found more than half (55%) of respondents currently have fixed rate accounts. The group also found that 22% of them said they plan to increase the amount of money they deposit in fixed rate accounts in the next three months, compared with the last three months.

The Bank of England has cut the base rate three times this year to 4%, and further cuts are widely expected by analysts next year, with Investec stating that its economists believe that the interest rates could fall to 3.25% by the end of 2026.

Head of deposits at Investec, David Hunt, said: “The trend of base rate cuts is now firmly established, and this is reflected in the rush by savers to lock in higher rates, with more money being committed to one, two and three-year accounts.

“More than half of savers hold fixed rate accounts, and many are increasing their deposits to secure higher rates for longer. People need to be sure however that they will not need access to the money before the end of the term and plan ahead accordingly.”

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