Savers have been hit by falling interest months before the Bank of England cut rates to their lowest level in two years.

Learn what the stated annual interest rate is and how to calculate it without compounding, plus how it compares to the effective annual rate.

The Bank's governor says interest rates are on a "gradual" downward path, and decisions around future cuts will be "a closer call".

The Bank of England cut interest rates today from 4 per cent to 3.75 per cent, in good news for homeowners with a mortgage. The 0.25 percentage point cut was widely predicted as the Bank looks to take action against sluggish growth and rising unemployment.