Bank of England interest rate rise might not be passed onto all savings accounts | Personal Finance | Finance

But while easy access accounts may offer lower rates, these can allow greater flexibility and typically permit free and easy withdrawals whenever necessary.

Ms O’Brien said: “That kind of flexibility could be very useful in the current climate, where switching accounts frequently could be beneficial.”

She added that it could be “wise” to diversify funds to get the best of both worlds.

Ms O’Brien explained: “Keep an emergency fund in an easy-access account to ensure simple last-minute withdrawals if needed while moving the rest to the top-rated fixed-rate savings account to best benefit from high interest on your savings.”

Personal finance analyst at Bestinvest, Alice Haine, described those with savings languishing in accounts offering lower interest rates as “missing out”, warning people should act “sooner” to secure the best deals while they’re there. This is due to market analysts forecasting that savings interest rates may have reached their peak.

Ms Haine said: “Another rate rise could push rates up higher, particularly if banks get competitive in an effort to attract new customers. However, with inflation expected to drop significantly by the end of this year and interest rates near or at the peak, the sooner savers act the better to ensure they secure the best deals while they are still live.”

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