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Savings shock as top rates tumble over two weeks

10th September 2019

savings, deposit, interest, rates, fall


According to the latest research by Moneyfacts.co.uk, several rate cuts have been made to some of the top deals across various sectors, which has created a ripple effect on other competitors, as providers adjust to their now exposed market position.

The biggest fall was on the best 5 Year Fixed Rate account which was cut from 2.50% pa to 2.30% pa. This is a fall of 0.20% which equates to a loss of £200 per year interest on a £100,000 deposit.

Our director, Scott Gallacher, was asked to comment on this for the FT's Financial Adviser newspaper, the premier weekly newspaper for UK based financial intermediaries.

Scott's comments were that advisers naturally advocate the power of investments to ‘grow’ the real value of money but cash deposits remain an integral part of financial planning for three key reasons: -

An important emergency fund to cover unforeseen expenditure,

To cover know short-term additional expenditure (tax bill, child’s wedding, home move, etc.), and

As a defensive element of someone's overall wealth.

The first two elements remain perfectly valid even with lower interest rates, but for the third defensive element, advisers will need to consider the potential long-term inflationary erosion effect of negative real interest rates on their clients’ overall position.

The Financial Adviser article, with Scott's comments, can be found here - "Advisers back cash deposits despite rate tumble".

If you are concerned about the impact of falling interest rates and the effect that this will have on your financial position please contact us for help and advice.


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