What to do with savings as interest rates fall

It's bad enough that people who were responsible about their finances and who did not get themselves into unrealistic debt are being hit by the downturn.

Those with savings though are being hit really hard by the fall in the interest rates being paid on savings by the banks and building societies.
A report in the Telgraph reveals that the Buidling societies have already cut the rates on their savings accounts by more than the Bank of England has over the past year.
The Bank of England is due to announce it's latest move on interest rates on Thursday and there is a lot of speculation that rates willl be cut further to 1.5%. Some have speculated that we couuld reach teh pioint that we would see negative rates on savings accounts. Thsi would mean that savings would earn no interest at all and that we would in fact pay the banks and building societies to hold our money. Although this seems unlikely it is not impossible.

For anyone who has savings and a mortgage at the moment the only sensible thing to do seems to be to use the savings to pay off some of the capital owed on the mortage.
When rates and prices start rising again as they surely will then this will help provide some insulation against the rises.