Bank of England lowering base rate may motivate consumers to switch

In response to the Bank of England’s latest base rate decision, John Dentry, Product Owner of the Current Account Switch Service at Pay.UK, said:

“While the implications of today’s decision to lower the base rate may not be felt immediately, there will be important considerations for consumers going forward. 
 
“As the base rates falls, so too will rates on both current accounts and savings accounts, which may motivate consumers to scour the market in search of higher returns. With our latest figures revealing that well over a million switches took place in 2024, a year in which rates were cut for the first time since 2020, the appetite for switching is clear.
 
“However, it isn’t just interest rates consumers should have in mind. Everyone has individual needs and financial goals, and finding the right bank account is essential to effectively managing your finances. Whether it’s cash incentives, spending benefits or improved mobile apps, banks are constantly refining their offers to attract new customers. 
 
“With further cuts looking likely this year, there is no better time than the present for consumers to ensure their bank account works for them. For those thinking about making a change, it can pay to consider switching."