Savings alert: Ford Money to raise interest rates to 'ensure customers’ money works hard'
Savings rates continue to be competitive
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A well-known online bank has announced its plan to raise interest rates in a boon for savers.
Ford Money will raise the savings interest rate attached to its Flexible Saver account tomorrow (July 24).
Savers have benefited from recent actions from the Bank of England with interest rates continuing to be competitive.
Since August 2023, the country's base rate has been frozen at 5.25 per cent which has been passed onto banks and building societies.
This has been passed onto bank customers via savings accounts, including by Ford Money.
However, experts have warned competitive deals could be withdrawn in the near future with the digital bank set to offer a hiked 4.75 per cent.
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Savings interest rates are continuing to remain competitive GETTY It should be noted that the interest rate for this account is paid either monthly or annually depending on preference.
As it stands, the minimum opening balance sits at just £1 with the maximum operating amount being £2million.
Customers can apply online with unlimited penalty withdrawals attached.
Both new and existing customers are able to apply with consumers permitted to have multiple accounts.
Will Davies, the bank's chief deposits officer, reminded potential customers of the attached benefits to this bolstered savings product.
He explained: "In these challenging times of rising living costs, and despite the potential for interest rate changes on the horizon in August, we're proud to be increasing our Flexible Saver account to 4.75 per cent AER variable, ensuring our customers' money is working just as hard as they do.
"Our flexible saver account not only offers an above-inflation interest rate with unlimited penalty-free access but also comes with a Best Rate Guarantee, meaning that our customers will always enjoy the same rates as new customers on similar products."
It should be noted that the interest rate currently attached to this savings account is lower than the current base rate.
Rates have been raised by the Bank of England in an attempt to bring inflation down to its desired target of two per cent.
Since May 2024, the consumer price index (CPI) rate has eased to this level which many believe will signal a rate cut from the central bank.
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The Bank of England base rate has held interest rates at a 16-year high since it was hiked to 5.25 per cent last August GB NEWSDavies added: "Ford Money is dedicated to offering superior value to our customers, unlike many big banks whose rates are as exciting as watching paint dry.
"We strongly advise savers to regularly review their current savings accounts, as blind loyalty can leave you short-changed, especially when some rates offered are below two per cent inflation.
"By exploring more competitive alternatives, savers can find accounts that better meet their financial needs and goals."
The Bank of England's Monetary Policy Committee (MPC) will next make an announcement regarding interest rates on August 1.