How to make the interest rate cut work for you

Interest rates fell from 5.25% to 5% last week but what should we all do? With savings accounts, after a base rate cut, most providers lower their rates; but not every bank will do as some are desperate to pull in new savers so may keep their rates static. Also, those that do may wait a few weeks to announce any cuts.

Because of the uncertainty, if you have a top-paying savings account and are worried your rate will drop, now's not a good time to compare the market in the hope of switching as it’s not a level playing field. The best thing to do is wait until the start of next month.

Yet, if you’ve got a poor rate, say anything less than 5.5%, it’s worth switching now. Martin’s Top Savings Accounts guide includes all the top payers.

For mortgage holders, those on a variable rate deal should see a drop of around £20 per month for every £100,000 of mortgage. If you’re in the middle of a fixed rate deal there’ll be no change. But if you’re coming to the end of a deal, don’t expect new offers to get cheaper as lenders aren’t passing on the cuts. This means even if you switch to a current top rate your monthly costs are likely to jump.

But there is some good news. If your fixed rate mortgage deal ends before 30 June, HSBC’s new 'Ratematcher' deal promises to match the current rate, though with a number of catches.

Full details of the HSBC offer and how to bag the best home loan are included in Martin's Find A Cheap Mortgage guide

Travel between London and Manchester for £1

Virgin Trains is selling dirt cheap tickets between London Euston and Manchester. They start from a remarkable £1 each way but are more commonly sub-£10.

You can book up to 16 May 2008 at the moment and it’s not the first time Virgin’s offered the £1 deal. In fact, a member of the It Pays to Watch team bagged a £1 ticket earlier this year.

To book simply go to the Virgin Trains website and click on the 'tickets@home' section on the top left hand corner. If you can't find £1 tickets, then £3, £7 and £9 fares are widely available, which is still a great bargain.

For extra tips and tricks to cut the cost of rail fares, read Martin's full Cheap Train Tickets guide.

 
Want 1,000 texts for free?

If you like the joy of text then you can get an incredible 1,000 free text messages from Orange. Simply order a SIM card online, register it then wait two weeks for the texts to be credited to your account.

And you don’t have to credit the phone to get the free texts. But you’ll need to use them within 30 days. For more information on the deal read the 1,000 Free Texts Forum note.

Don’t worry if you don’t have an Orange compatible handset as it’s easy to unlock your phone. Full details are in Martin's Mobile Unlocking guide.

For the best deals, read Martin's Cheap Mobiles and Free Texts guides.

DIY for less

IKEA is heavily rumoured to be offering 21% off everything this Saturday to celebrate its 21st birthday. The Swedish superstore is remaining tight-lipped but, interestingly, has not denied the speculation. It’s best to check before you travel to ensure the offer is running. If it is, you’ll be able to grab a real bargain – if you can negotiate your way through the crowds. 

All updates on this will be in the forum thread.