Nearly two out of five savers plan to switch more cash into fixed rate accounts

Nearly two out of five savers (37%) plan to switch their funds into fixed rate savings accounts this year to beat potential Bank of England base rate cuts, according to research* commissioned by Investec Save.

Savers may be eyeing fixed-rate deals as these offer a degree of protection from expected cuts to the Bank of England base rate this year. In May the Bank of England cut the base rate from 4.5% to 4.25% and maintained this in June, with analysts expecting further cuts this year.

Base rate is factored into the interest paid by variable-rate savings products, such as easy access accounts. However, the rate paid by fixed-term savings products such as bonds remains unchanged until their term expires.
The research by Investec Save showed that savers planning to put their cash into fixed rate accounts will on average switch £15,800 into fixed rate savings.

Around one in seven (15%) said they would put between £10,000 and £19,999 into fixed rate accounts this year, while another 15% plan to save between £1,000 and £2,999 into fixed rate accounts.

A further 13% of savers say they will put away between £5,000 and £9,999, with 12% squirrelling away between £3,000 and £4,999. On average. savers have around a fifth of their savings in fixed rate accounts currently.

David Hunt, Head of Savings, Investec Bank, said: "Our research shows that savers plan to vote with their feet, with 37% planning to take out fixed term savings products. Interestingly, many say they will put considerable sums of money into these, which could reflect a growing degree of caution among savers.

“With the Bank of England expected to make further cuts to its base rate over the next year, fixed rate accounts can serve as a valuable hedge to help protect savers’ returns.”

Investec Save offers a range of savings accounts which do not have any penalty fees or hidden bonus rates. These include its Fixed Rate Saver offering 1-Year, 2-Year or 3-Year terms, which offer between 4.20% AER/gross and 4.25% AER/gross. The Fixed Rate Saver provides simplicity and security for savers. Interest is paid on maturity on the 1-Year and annually on the 2-Year and 3-Year. No withdrawals are permitted until the end of the term, and no further deposits can be made after the first seven days.

Its Online Flexi Saver, which currently offers 4.20% AER** (4.12% gross), is a simple and secure instant access savings account, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account. This also makes the Online Flexi Saver perfect for unexpected bills that might arise, such as car maintenance or a vet’s bill.

Investec Save’s 90-Day Notice Saver, which offers 4.43% AER (4.34% gross), gives savers a higher rate of interest than its instant access account and no fixed term. It enables customers to save as well as to pay bills they know are coming up, as they can access savings at any time with unlimited withdrawals by providing 90 days’ notice before withdrawal. It also gives 97 days’ notice before reducing the interest rate on the account.

* Investec Bank commissioned Viewsbank to survey 769 people with savings accounts between May 21st and May 23rd 2025. The sample represented the demographic profile of the UK.
** AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products.