Is It Time to Fix Your Savings? Here’s What to Know in 2025

As we move into a new financial landscape shaped by the Bank of England’s recent interest rate cut—and the potential for more to follow—many savers are wondering how best to protect their money. With most people still leaning towards easy-access accounts, fixed-rate savings are often overlooked. But now could be the ideal time to reconsider.

At Cleveden Park Wealth, we help clients think strategically about their savings. And right now, fixed-rate savings could offer serious value for those willing to look beyond the surface.

What Are Fixed-Rate Savings Accounts?

Fixed-rate accounts allow you to lock away a portion of your savings for a set period—often one to five years. In return, you receive a guaranteed interest rate for the full term, regardless of whether rates fall.

While easy-access savings will likely offer lower returns as the year progresses, fixed-rate accounts enable you to lock in a strong rate today—offering certainty in uncertain times.

Why Aren’t More People Taking Advantage?

Despite the benefits, nearly three-quarters of savers still shy away from fixed rates. Why? The most common concerns include:

• Access to cash: 40% of savers say they’re uncomfortable tying up funds.

• Uncertain timelines: 31% aren’t sure when they’ll need their money.

• Emergency access: 38% want to keep funds available for the unexpected.

  
  

These are valid worries—but often, they’re driven by emotion rather than a clear savings strategy.

What Can You Do?

Use a Laddering Strategy

Laddering involves spreading your savings across several fixed-rate accounts with different maturity dates. For example:

• One account maturing in 12 months

• Another in 24 months

• A third in 36 months

  
  

When each term ends, you decide whether to reinvest or access the funds. It’s a flexible and practical way to stay invested without locking everything away at once.

Separate Your Emergency Fund

It’s smart to keep emergency funds in a competitive easy-access account. But how much do you really need?

• If you’re working: 3–6 months of essential spending is usually enough.

• If retired: Consider 1–3 years of essential costs.

  
  

Anything above this could be earning more in a fixed-rate product.

Could Fixed Rates Be Right for You?

If you’ve avoided fixed savings in the past, now may be the time to rethink. Ask yourself:

• Are you holding more in cash than you need?

• Do you want to beat inflation over the long term?

• Could part of your savings be working harder?

  
  

If the answer is yes, fixed-rate savings might be worth a second look.

Finding the Best Fixed Rates

Today’s savers have more choice than ever. At Cleveden Park Wealth, we can help you explore fixed-rate options from a wide network of providers—all in one place through easy-to-use savings platforms.

Just remember: fixed-rate accounts typically don’t allow access until maturity, so it’s important to align your savings strategy with your financial goals.