Have interest rates peaked? – what’s next and what can you do?

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Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing, however, it may no longer reflect our views on this topic.

Are interest rates as good as they’re going to get? Here we take a look at what affects savings rates, what could be next for them, and how to get more from your cash.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

25 August 2023

It seems that the Bank of England can’t afford to concede in its epic battle with inflation.

Record wage inflation, and sticky core inflation, mean another interest rate rise is expected in September. With a chance of another in October too – read our guide on inflation for tips to help tackle it.

However, anyone waiting to fix their cash savings in the hope of better deals further down the line could be in for a surprise. As rates in some parts of the market might have already peaked.

There are signs that the best one-year fixed rates could be coming off the boil.

By mid-August 2023, the best rates on the market had been withdrawn from 6.10% and sat only fractionally above 6%. And while the average rate is still rising,