Savers have been encouraged to plan ahead and note a key date in their diaries when their interest rate will drop.

The Bank of England may well drop the base interest rate in its latest decision next week, so now is a good time for savers to review their accounts.

Rajan Lakhani, Personal Finance Expert and Head of Money at savings provider Plum, said that if you’re with one of the high street banks, you can get a better rate with a fintech, building society or smaller provider.

He said one option to look at for a better rate is fixed rate deals: “Given the direction of interest rates during the year appear to be downwards, you may want to also consider a fixed rate offer to lock in higher rates.”

But he issued a word of warning about these accounts: “Make a point to diarise when your interest rate offer is ending if it’s for a fixed term or includes a temporary bonus so you can compare rates, especially if it’s a 3-month offer.”

But make a point to diarise when your interest rate offer is ending if it’s for a fixed term or includes a temporary bonus so you can compare rates, especially if it’s a 3-month offer.”

He said that when looking for a competitive rate, you should aim to get an account paying at least 4.5%. He said people should also look at ISAs as a way to build up their savings.

Mr Lakhani explained: “With the new financial year having started, ensure your interest is protected from tax by saving into an ISA.

“With best-buy Cash ISA rates above 5% currently, there’s no excuse not to be using a tax wrapper unless you’ve already maxed out your allowance.”

He said it’s likely the base rate will drop next week with a 25 basis points reduction, falling from 4.5% to 4.25%. More rate cuts could be on the way in June, August and November.

However, there are some unknowns which could influence the central Bank’s decision, such as the impact of US tariffs on the growth of the economy.

Mr Lakhani said: “While recent news was positive with 0.5% growth in GDP in February, these are fragile green shoots and will need to be carefully nurtured given US tariffs could dampen business investment and consumer spending.

“Growth forecasts for the UK have already been reduced in light of this, for example, the EY Item Club has downgraded its UK growth forecast for this year to 0.8% from 1.0%, and cut it to 0.9% from 1.6% for 2026.

“Additionally, the recent introduction of higher employment taxes will add to business costs, potentially diminishing the prospect of further investment.”

But the bank expert said a cut to rates could actually help the economy grow. He said: “Lower rates could in fact help to stimulate demand in the economy, as households and businesses have more to spend and borrowing is cheaper.

“Two committee members actually voted for a 50 basis points cut at the February meeting, which shows how seriously the risk of an economic slowdown is being taken. With tariffs now a reality, it’s no wonder all signs point to a rate cut.”