A fall in interest rates can be bad for those people with savings as it means they will not be getting such a good return for their money. Some people will worry about this and look for ways that they can get a better return on their savings. here are things they could do in order to help that should help to provide a better return.
Pay off debts
Using savings to repay debts can be a good idea at any time. Savings interest tends to be lower than the interest that you get charged on debts. This means that it makes financial sense to repay debt rather than having money in a savings account anyway. Whether rates are high or low, this will apply and therefore it is always worth paying off your debts rather than saving money. It can be hard doing this, particularly if you have been saving up for a specific thing. However, you are spending more money than necessary of you have savings rather than paying off debt and so it is well worth ding it. You will be able to build up your savings quickly once the debt is repaid and you can put that money into a savings account instead. You should soon be able to build up your debts again if you
Put money into a different account
Even if savings rates do go down, you will have options as to where to save your money. If you search you could find that you can move money so that you get a better rate than you are getting now. Therefore, even if rates do go down, you will still get more in interest. If you choose an account which has a fixed rate for a particular time period (perhaps one to five years) or one that you have to give notice to draw out money, you will find that you can get higher interest. Therefore, if you are happy to tie your money up for a while then you will be able to get a higher return. It is good to just take a look at the difference between the different rates and decide which you think looks to be the best for you. There are plenty of places where you can find out about what rates are being offered and what accounts are available. If you want instant access to your money then you will not get such a good rate. You may even find that using a current account that pays interest will be a better way to save money in an instant access account than a savings account. It is worth doing some research to find out.
Investing money will traditionally bring a higher return that saving it. However, you need to be careful with this because investments can be riskier. You tend to need to be prepared to have your money invested for a significant period of time. Most investments should not be touched for at least ten years to allow for natural fluctuations in the markets. Choosing and buying investments can be tricky and it would be wise to seek the help of a financial advisor with this so that you can be sure that what you are doing is sensible. Make sure that you let them know how much risk you are prepared to take so that they can pick something for you that works. Often the more risk you take, the higher the return you can potentially get but promises of big returns can be misleading so it is wise to get help if you do not know much about investing yourself.
You could spend the money if you are not making much by saving it. Perhaps paying for things that you have been putting off, such as decorating or repairs to your home, a more efficient car, stocking up on items that will not go off and that you will use in the future and things like that. It is best not to just buy things for the sake of it as that is wasteful and will create clutter, but if you stock up on toiletries you know you will use or even do your Christmas shopping early, you will protect yourself from price rises and you may even get a better return on your money this way, as prices go up compared with keeping the money in a savings account which pays an interest rate that is lower than inflation.
It is worth not worrying too much about the changes in the base rate and the effect it might have on the return you get on your savings. Unless you have a lot of money saved, then the amount of interest that you get will be limited anyway. Changing to an account that pays better interest rates will make some difference though. However, you might be better off considering investing or spending the money.