Prior to the Bank of England’s recent monetary policy committee (MPC) meeting, there were two schools of thought on what might happen to the base rate of interest. Some argued that rising inflation would force the BoE to act and increase the base rate, in order to negate the spiralling cost of living in the UK. Others suggested that such a move would be impossible, however, as the looming spectre of Brexit continued to underpin an uncertain and decidedly volatile economic climate.

A Look at the BoE’s Decision and the State of the Economy

Ultimately, the BoE decided to hold the base interest rate at a record low of 0.25%, amid a reported split between the individual members of the MPC. This internal divide was indicative of the prevailing climate, as while some members voted to raise borrowing costs immediately as a way of negating disproportionate inflation growth, others felt that the current base rate and an accompanying money-printing program was enough to support the pre-Brexit economy.

This is even accounting for sluggish real wage growth, which along with inflation hikes (and particularly the rising cost of food) is placing a significant squeeze on households and preventing them from saving their hard-earned money. The plight of the economy was drawn into sharper focus after the Federal Reserve (the central bank in the U.S.) decided to hike their own base interest rate to 1.0%, with further increases proposed for next year.

What This Means for Businesses in the UK

We may well see the BoE increase the base rate in the UK later in the year, of course, but for now it is important that business owners recognise the current climate and adapt accordingly. Now may well be the ideal time to borrow money and raise funds, for example, as the cost of borrowing remains restricted by the base rate. It is also important that businesses reconsider their pricing strategies, however, as dwindling disposable income levels, soaring inflation and the inability of households to save is sure to impact on consumer spending in the months ahead (particularly in relation to big ticket purchases such as cars, holidays and real estate).

With a keen focus on pricing and re-investment, businesses can create a flexible business model that is capable of consolidating in the pre-Brexit climate. This is also a strategy that can pay dividends once the UK has left the EU, as businesses will undoubtedly be forced to alleviate the financial pressure created by higher trade tariffs and reduced turnover. One way in which this can be achieved is through cash flow finance measures such as invoice factoring, which enables payments to be advanced from your sales ledger.

If you are thinking of opening a bank savings account that earns the highest interest rate, you will be considered as a savvy investor. You may want to save money for your home, family, education or any unexpected emergency, this kind of savings account will be very helpful for you in the long terms. You not only get to earn high interests but have the money safe and available in your bank account.

Standard big bank savings accounts don’t offer high interest rates on the savings account. You will get to earn better interest rates from online banking account, brick and mortar banks, credit unions and other institutions that are paying interest hovering around 5 percent and better and very important point to be kept in mind, most of them are free from any fee. Thus, these kinds of accounts offer a high annual yield than standard savings account.

One question that you may have in your mind is how these kinds of institutions are able to offer great rates? The online banks especially offer better interest rates from the brick and mortar banks because they don’t have any overhead on them. The savings is thus passed along to you in the form of high interest rates. Because of the stiff competition in the banking industry, traditional banks have entered the fray by developing online savings products of their own. This allows them to offer high yield savings accounts.

It is an ideal time for you to open high interest savings bank account in those institutions that offer higher interest rates. You will be able to find good number of institutions because the banking market is going through a lot of competition and they have to offer best deals to attract the investors. Go online and compare the interest rates with different institutions. You will know the rates offered, limitations and terms of services with a click of the mouse.

In order to stay in the market, most banks are offering a variety range of products and services. There is usually no minimum balance fee, easy online access, direct deposit, free on line banking that allows you to view your balance, transfer funds, convenient fee free, ATM transactions and checking account options. You also get the features of setting up external banking that allows you transfer funds from one account to another with different banks.

Be sure to understand the terms of services of the financial institution before opening an account with them. Some may have limitations or restrictions that may not cater to your needs. Due to the competitive market, there is no reason you should invest your money foolishly at lower interest rates or give your business just to any bank around. Always do your research thoroughly and make the best decisions before investing your money. You may find that it is prudent to move your money into a high interest rate savings account online or offline that yields better financial results.