Are you earning less than half of the base rate in interest?

Probably, is the short answer.

In December 2024, the Financial Times estimated that £276 billion was sitting in UK current accounts earning zero interest. More recent data published by the Bank of England in January 2025 showed that the average effective interest rate for individuals’ sight deposits (instant access accounts) was only 2.11% .

This means that most savers have been missing out on significant amounts of interest.

The Bank of England’s decision to hold the base rate at 4.5%, announced at the second of its eight Monetary Policy Committee meetings this year, should serve as a wake-up call for savers.

At a time when inflation is above the Bank’s stated 2% target, and looks set to increase over the course of 2025, it’s important to maximise your spending and saving power.

Here’s a couple of reasons why cash deserves your interest.

Cash is a steady investment

Stocks and shares investors have been stung recently by sharp dips in the market. Cash, meanwhile, has proved to be a steady earner. Fixed-term deposits give savers a guaranteed return upon their maturity, while interest paying instant access accounts give savers the best of both worlds.

Interest from savings can beat inflation

That might sound a bit obvious, but the statistics at the start of this article point to a growing complacency to savings in the UK. By being proactive with your savings, even with an instant access account, you can outpace inflation and keep household costs under control.*

With a base rate cut expected at some point in 2025,interest rates are likely to fall, meaning that now may be the time to lock into competitive rates. Blink, and they could get lower.

Akoni Hub: A savings platform built with you in mind

Here at Akoni Hub, we believe that anyone should be able to access competitive interest rates. That’s why we don’t have a minimum deposit to use our platform, whether you’re opening an individual, joint, business, charity, trust, power of attorney, or court of protection account.

We know how daunting applications can be. That’s why we have a dedicated team of UK-based account managers to help you at every stage of your journey, whether that’s onboarding, depositing, or withdrawing.

Check out some of our best interest rates below:

·       Instant Access: 4.04%

·       6-month Fixed Term: 4.24%

·       12-month Fixed Term: 4.30%

·       90-day Notice: 4.30%

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Secure your best rate today by contacting us on 0203137 9388 or by email on contact@akonihub.com. If you’d like a demonstration of the platform, you can also book an appointment using Calendly by following this link.

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*Based on current rates

**Rates correct as of 18/03/2025

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Sources:

Financial Times

Effective interest rates - January 2025 | Bank of England