If you’ve got money in a fixed-rate savings account, it might be time to check when your deal ends. More than £116bn of fixed-rate savings will mature by the end of 2025, and millions of savers could see their interest rates tumble overnight.
The problem is that when a fixed deal finishes, many providers move the money into a standard variable account. Fixed rates are currently around 4.5%, but the average easy access account pays closer to 2.4%. That gap could cost you hundreds of pounds a year if you don’t act.
Research for Skipton Building Society shows that many people are unprepared. A third of adults do not know what account maturity means, one in ten never check their savings rate, and nearly four in ten rarely move their money to a better account. Some said it feels too complicated, while others simply prefer to leave their cash where it is.
It is worth remembering that switching is usually straightforward, and there are often better rates available if you take the time to look. You can often move to a new fixed-rate deal with your existing provider, or shop around elsewhere for a higher rate or more flexible access.
The key message is simple
Don’t let your savings drift. A quick check before your deal ends could make a big difference to the return on your hard-earned money. Cash isn’t always the right long-term option for your savings, but if part of your savings is in cash, it’s worth exploring the cash savings hubs on some D2C platforms that will not only help find the best rates for your savings, but also allow you to place your money directly through the hubs.
They include interactive investor, AJ Bell, Charles Stanley Direct and Willis Owen.
Image by George Becker
