After months of noise and speculation, Chancellor Rachel Reeves finally delivered her inaugural Budget statement to a packed House of Commons yesterday.
As Labour’s first Budget for 14 years, it was never going to be low key.
In the days before, we were warned the government would have to make "tough decisions" to address the £22 billion shortfall left by the outgoing Conservative government.
And there were plenty of shake-ups affecting investors, employers, landlords and second-home owners, among others.
Here are some of the key changes that could affect your finances:
What the Budget means for savers
For savers, the Budget offered few surprises— there were no major changes to ISAs or savings allowances.
Still, times like this are a good opportunity to review your savings and make sure they’re working as hard as possible for you.
And with potential rate cuts on the horizon, there’s no better time to take action.
Cuts looming
With the Bank of England base rate sitting at 5% [October 2024], the environment looks good for savers.
Interest rates on savings accounts are holding strong, with many paying 5% or more —a stark contrast to recent years when top rates barely scraped 1%.
However, with inflation dipping below the government’s target of 2% for the first time in three years in September, reports suggest we could see one, if not two base rate cuts before the end of the year.
This could spell trouble for savers.
Savings rates are closely tied to the base rate, so if it drops, savers can expect lower returns on their hard-earned money.
Shop around
That’s why now is the perfect time to review your savings accounts to make sure you’re getting the best deal. And if you’re not, consider moving to a higher paying deal.
Don’t let brand loyalty cost you. Too many savers stick with their existing provider and end up missing out on better interest rates elsewhere.
Some of the lesser known challenger banks currently offer market leading deals as they compete for customers.
Just keep in mind these headline-grabbing deals are often only available for a short period of time so act quickly to avoid disappointment.
Find top rates fast
If chasing the best rates feels overwhelming—or you simply don’t have the time—consider using a cash management platform like Akoni.
Akoni provides a hassle-free way to save, move, and manage your money.
The platform lets you compare rates from multiple banks in real-time and seamlessly switch between providers without the usual hassle of opening and closing accounts.
Plus, you’ll receive notifications when new rates become available, so you’ll never miss out on a top deal again.
Want to find out more about how Akoni can simplify your cash savings management? Get in touch today.
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