The clock is ticking for savers to cash in on high interest rates

Some forecasters say rates have peaked – if they have, the best deals will not be around long.

The clock is ticking for savers to cash in on the highest interest rates for 15 years, as the bank of England’s governor tells Brits the time is now to ‘shop around’.

This week Andrew Bailey hinted that tying money up in a fixed term bond was the only way for households to enjoy better returns.

Some of the best interest rates on the market are fixed term bonds paying as much as 4.95pc on savers’ cash, the ability to fix the rate for up to seven years.

But these deals might not be around for long, as economics predict no more bank rate rises until mid-next year, following Thursday’s rise from 4.25pc to 4.5pc.

Capital Economics has forecast inflation to ‘drop sharply’ in the coming months. Since December 2021, Bank of England Governor Andrew Bailey has used some 12 Bank Rate rises to curb record high inflation.

When the bank rises, so too do interest rates for savers. But if inflation falls, further rises may not be necessary. This is why economics are saying ‘there’s a decent chance’ 4.5pc could be the peak.

Jamie smith, Financial Advisers at Foster Denovo, shares his insights on the discussion.

‘If the Bank rate does not change, interest rates for savers could either stay the same or fall’

‘Financial markets are indicating a peak, so its unlikely interest rates for savers will continue to rise. Rates will either linger around these levels or begin to decline’.