{"id":18159,"date":"2024-01-01T02:26:39","date_gmt":"2023-12-31T20:56:39","guid":{"rendered":"https:\/\/farratanews.online\/from-isas-to-nsi-rate-cuts-5-savings-trends-to-expect-in-2024-personal-finance-finance\/"},"modified":"2024-01-01T02:26:39","modified_gmt":"2023-12-31T20:56:39","slug":"from-isas-to-nsi-rate-cuts-5-savings-trends-to-expect-in-2024-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/farratanews.online\/from-isas-to-nsi-rate-cuts-5-savings-trends-to-expect-in-2024-personal-finance-finance\/","title":{"rendered":"From ISAs to NS&I rate cuts – 5 savings trends to expect in 2024 | Personal Finance | Finance"},"content":{"rendered":"

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Savers can use banking app tools to help them save on a daily basis (Image: Getty)<\/span><\/span><\/div>\n

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The Bank of England has kept the interest rate at its current rate of 5.25 percent over the past three months.<\/p>\n

The decision has come as little surprise but interest rates are still at their highest for the last 15 years. The Bank had previously raised rates 14 times in a bid to bring down inflation.<\/p>\n

With the base rate remaining high, savers have benefitted from high interest rates, and with inflation at 3.9 percent, savers can beat this rate and actually make the most out of their money.<\/p>\n

With many possibilities in 2024, experts have shared their predictions on what savers may see.<\/p>\n

Savings rates<\/strong><\/p>\n

Sarah Coles, financial expert at Hargreaves Lansdown says that we are unlikely to see a “watershed moment” when savings rates are cut. Instead, she suggests that we should expect to see them slowly drift south throughout the year.<\/p>\n<\/div>\n

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The Bank of England has kept the interest rate at its current rate of 5.25 percent (Image: EXPRESS)<\/span><\/span><\/div>\n

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She added: “Savings rates have peaked. We\u2019ve seen them slowly falling for weeks, as the market digests the fact that we\u2019re unlikely to see any more Bank of England rate rises in the near future.<\/p>\n

The finance expert says that 2024 savings rates may start to reflect an expectation that interest rates will fall.<\/p>\n

Markets are now predicting that there will be five rate cuts next year starting from March and reaching four percent by December. But this forecast could prompt banks to move rates lower earlier.<\/p>\n

Cash ISAs<\/strong><\/p>\n

Earlier this year, a report from the Bank of England revealed that cash Isas saw the largest inflows for the start of the tax year since Isas were launched in 1999. Savings experts predict there could be even more competition in the cash ISA market in 2024.<\/p>\n<\/div>\n

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Markets are now predicting that there will be five rate cuts next year (Image: Getty)<\/span><\/span><\/div>\n

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James Blower, founder of website Savings Guru said: “I think we will continue to see strong interest in cash Isas.<\/p>\n

“With new subscriptions only being of benefit for savers with very high savings balances and a few niche groups of savers, they’ve become more important for savers with even relatively small balances.<\/p>\n

“We will definitely see more people caught out by the increase in rates and the PSA not covering their interest earned, and then moving to cash Isas as a result.”<\/p>\n

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Current the top-pick cash ISAs, according to moneysavingexpert.com are:<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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  • Easy access, allows withdrawals\n
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    • Metro Bank \u2013 5.11 percent (branch only)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
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      • Fixed-rate ISAs (with access)\n
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        • Metro Bank \u2013 5.41 percent for one year (branch only)<\/li>\n
        • Scottish BS \u2013 4.9 percent for two years<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n