May warning to everyone with a cash ISA It comes ahead of a potential Bank of England cut to interest rates Savers are being warned about interest rates. Households who use cash ISAs and other savings accounts are being urged to grab the best deals now. Finance experts are warning of a potential interest rate cut in May which, while good news for house buyers, is bad news for savers. ‌ They are being encouraged to look for the best fixed-term savings accounts now and lock them in before interest rates drop. Article continues below READ MORE: The PIP claimants who will still qualify for benefit under new rules Get our best money saving tips and hacks by signing up to our newsletter A cut by the Bank of England is usually soon followed by banks. ‌ Those on variable rates could be stung if banks decide to slash them Antonia Medlicott, from financial education specialists Investing Insiders, said: “With cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates. "However, most of the top-paying accounts offer ‘variable’ rates, meaning they can go up and down as the Bank of England rate fluctuates. ‌ "You will generally get easier access to the cash held in these accounts.” She went on: “Fixed-rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does. If you have spare cash sitting in a low-interest account, moving it into an ISA protects it from tax on interest, dividends, and capital gains. ‌ Antonia also pointed out the potential benefits of stocks and shares ISAs, for those who have enough money to use them. She said: “Only 21% of the adult population use investment ISAs compared to 40% who use a cash ISA. "Many people avoid investing because they simply don’t feel they have the knowledge and education to approach it.” Article continues below "Investing is well suited to those who can put their funds away for at least five years, and if you can afford to look more long-term, investing offers greater potential gains. "Historically, those who have put their faith in the markets have enjoyed far greater returns than those who used savings accounts instead.”