Britons are relived following the news that the Bank of England has opted to cut the UK's base rate from its 16-year high of 5.25 per cent to five per cent.
Mortgage holders and debt borrowers have been saddled with skyrocketing monthly repayments in the central bank's fight against inflation but savers have benefited.
However, the era of record high savings rates is likely coming to an end if recent moves from high street banks and building societies are any indicator.
Major lenders, including NatWest, Nationwide Building Society and Barclays, are in the midst of a mortgage price war with rates falling across their line of products.
As well as this, banks are beginning to slash rates attached to personal loans in another win for borrowers.
While this is a boon for millions of homeowners, homebuyers and people in debt, savings accounts will likely take hit over the weeks and months ahead.
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Interest rates on savings have been rising in the last couple of years amid multiple rate hikesGETTYWithin the space of a week, average savings rates are already coming down, based on analysis conducted by Moneyfactscompare.
As of yesterday, the average one-year fixed interest rates had fallen from 4.57 per cent to 4.56 per cent in the space of a day.
Similarly, the average one-year fixed cash ISA has dropped to 4.43 per cent from 4.44 per cent over the same space of time.
However, the average easy access savings and ISA rates remains at 3.13 per cent and 3.35 per cent, respectively.
Kevin Mountford, the co-founder of Raisin UK, has previously called on savers to "lock in market-leading rates" while they still can.
He explained: "The Bank of England has reduced interest rates by a quarter percentage point to five perc ent. This comes after rates were held at a 16-year high of 5.25 per cent since August 2023.
"Savings accounts and tracker rate mortgages should reflect these lower interest rates immediately. Fixed-rate mortgages have already factored in the likelihood of lower rates, with some reductions in the past few weeks.
Any individuals with savings or pension pots should consider locking in any market-leading rates on longer terms immediately, as this will prompt reductions across the market, leading to lower interest earnings over time.
In recent months, the Co-operative Bank and Nationwide have offered interest rates on savings accounts worth seven per cent and 6.50 per cent.
Other banks that have provided high rates include NatWest, Santander and Barclays.
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Experts believe the Bank of England will cut rates even further this year
PAA survey of finance experts conducted by finder.com found that the majority of those polled believe the base rate could fall by two per cent by the end of the year.
George Sweeney, an investing expert at finder, warned that that savings rates in the UK will drop by up to one per cent by the end of the year.
He explained: "Even a slight drop in the base rate will mean banks will want to get ahead of the curve and start looking to bring down savings rates as much as possible while still looking attractive to savers."
All eyes will be on next week's inflation report (August 14) to see if the CPI rate remains at two per cent but the current trajectory seems clear: savings rates are plummeting.