5 smart saving strategies to help women maximise their cash when interest rates fall

In recent years, you might have noticed that your savings have grown at a faster rate thanks to higher interest rates.

The Bank of England (BoE) began raising interest rates in December 2021 to help control inflation, which was at its highest rate for a decade. After this, the BoE raised the base rate 14 times in a row, peaking at 5.25% in August 2023.

However, interest rates have begun to fall. On 7 August 2025, the BoE cut the base rate from 4.25% to 4%. This was the fifth rate cut since last August. In September, the BoE held the rate at 4%.

As a result, you may find that your cash savings are growing more slowly than they were before.

Moreover, research published by FTAdviser (19 June 2024) suggests that women save almost £1,000 less than men each year. This is partly due to the disproportionate effect of the cost of living crisis on women.

As such, maximising your savings when interest rates fall is crucial for protecting your financial future. Read on to discover five smart saving strategies to help you make the most of your cash.

1. Regularly review cash savings

Life gets busy. Between your work, childcare, and personal commitments, finding the time to regularly review your cash savings might feel like a challenge.

If so, you’re not alone. According to research published by MoneyAge (27 May 2025), 35% of UK adults don’t know how much interest their current or savings account earns.

However, failing to understand how your current interest rate compares to market rates could mean that you’re missing out on opportunities to grow your wealth and protect it against inflation.

So, if you opened an account a while ago and haven’t checked in for a while, now is the time to find out what your current interest rate is. This is a crucial first step towards maximising your savings.

2. Shop around for the best interest rates

Research from the Building Societies Association (13 September 2024) has revealed that 31% of savers never compare the rate on their savings accounts to those offered by competitors. This could potentially lead them to miss out on over £800 of extra income a year.

Once you’re clear about the level of interest your current savings account is generating, start shopping around for a better deal.

Banks change interest rates on savings accounts based on factors such as the BoE base rate, inflation, and their own financial strategies. As such, even when interest rates drop, you might be able to find a more favourable rate than the one you’re currently receiving.

3. Make the most of tax-efficient savings

In the 2025/26 tax year, you can contribute up to £20,000 in total to ISA accounts without paying tax on the interest or returns you earn.

In contrast, you’ll usually pay Income Tax at your marginal rate on any interest you generate from savings held outside an ISA wrapper, if you exceed certain thresholds.

If interest rates fall and your savings grow more slowly, using ISAs to shield as much of your wealth from tax as possible could be a smart way to maximise your returns.

Another option is to move some of your cash into a Stocks and Shares ISA, as this type of account may offer the potential for higher returns over time. According to Moneyfacts (25 February 2025), between 1 February 2024 and 1 February 2025, the average Cash ISA rate was 3.8%, while the average Stocks and Shares ISA grew by 11.86%.

Alternatively, you could put some of your money in a fixed-term ISA that guarantees a specific interest rate for an agreed period (more on this below).

4. Consider fixed-term accounts

A fixed-term account is a savings account where you lock your money away for a specific period of time – typically between six months and five years. The interest rate is guaranteed for the entire duration of the term.

In exchange for this commitment, you’ll usually receive a higher interest rate than you would for an easy access account, which allows you to make flexible deposits and withdrawals.

As such, putting some of your money in fixed-term accounts could provide valuable stability and help you to continue growing your savings if interest rates start to fall.

However, while this approach could potentially protect your money from future interest rate drops, you might incur a penalty fee if you try to withdraw your funds early.

This could make it difficult and expensive to access your money at short notice. What’s more, if interest rates rise, withdrawing early to switch accounts could result in penalty charges.

5. Make use of available resources

If you’re time-poor or feel overwhelmed by the range of choice when it comes to savings accounts, there are plenty of resources to help you take control of your cash.

For example, s a UK-based cash savings platform that provides access to a wide range of products and providers in one digital space. This allows you to compare and manage your cash savings to ensure that you achieve the highest rate of return.

Crucially, the platform is regulated by the Financial Conduct Authority (FCA) and any eligible deposits you make with Insignis are protected by the Financial Services Compensation Scheme (FSCS).

The FSCS protects up to £85,000 of eligible deposits if your UK-authorised bank, building society, or credit union fails. This limit applies per person, per financial institution. As such, Insignis provides a convenient way to spread your savings across various providers – keeping no more than £85,000 with each one – to ensure that you benefit from the FSCS protection.

If you’d like to learn more about this useful financial planning tool, I’d love to hear from you. I can explain how the platform works, and anyone signing up through True Financial Design can do so for a reduced fee. I receive no fees or commission for referrals; I just love the platform and think you might too!

You might like to read the to learn more about the benefits of this platform.

Get in touch

If you’re not sure how to make the most of your cash savings, especially as interest rates fall, I can help.

To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300 889138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Approved by 2plan wealth management Ltd 23/09/25.