Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:
“There has been a notable uplift to market-leading savings rates on offer since last month across various types of accounts and terms, which is positive to see. However, inflation is eating its way into savers’ hard-earned cash and with the expectation for it to rise, its eroding power will not be easing any time soon. Savers would be wise to not let this deter them from finding a more attractive rate, as deals are improving, and they may miss out on a market-leading rate if they become apathetic.
“Due to the uncertainty the pandemic caused, savers may well wish to keep their cash close to hand, such as with an easy access account. Thankfully, rates are slowly improving in this sector and the top rate today comes from Tandem Bank at 0.65%, which increased its rate last week by 0.25% and is now one of the highest easy access rates seen since the start of the year. Not only is this a market-leader for new customers, but it also supports Tandem Bank’s green lending objectives – so savers will get a decent return and be supporting ethical initiatives in the process. As a comparison, most of the high-street banks pay as little as 0.01% on easy access accounts at present, so clearly savers would be wise to consider alternative brands.
“Inflation sat at 1% a year ago and there were 91 deals that could outpace this; however, the majority of these standard savings accounts were fixed rate bonds. If savers locked into a one-year fixed bond this time a year ago and plan to get a new bond with the same term, Tandem Bank pays 1.31% on its one-year fixed bond, whereas a year ago the top deal was from OakNorth Bank at 1.21%. Challenger banks are making several improvements across the market and take market-leading positions across many different scenarios, so hopefully we will see even more improvements to rates in the weeks to come.
“To mitigate the impact of inflation, switching accounts for a more attractive return is essential and considering the more unfamiliar brands would be wise as they continue to inject competition across the savings spectrum. Signing up to rate alerts and newsletters to keep abreast of the changing top rate tables is a good idea, as savers may need to act swiftly to take advantage.”
*Data note: Please note that these savings product numbers only include deals that are available to UK residents (no notice/easy access, notice, fixed rate bonds, variable or fixed ISAs) and excludes regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for larger deposits.
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:
“There has been a notable uplift to market-leading savings rates on offer since last month across various types of accounts and terms, which is positive to see. However, inflation is eating its way into savers’ hard-earned cash and with the expectation for it to rise, its eroding power will not be easing any time soon. Savers would be wise to not let this deter them from finding a more attractive rate, as deals are improving, and they may miss out on a market-leading rate if they become apathetic.
“Due to the uncertainty the pandemic caused, savers may well wish to keep their cash close to hand, such as with an easy access account. Thankfully, rates are slowly improving in this sector and the top rate today comes from Tandem Bank at 0.65%, which increased its rate last week by 0.25% and is now one of the highest easy access rates seen since the start of the year. Not only is this a market-leader for new customers, but it also supports Tandem Bank’s green lending objectives – so savers will get a decent return and be supporting ethical initiatives in the process. As a comparison, most of the high-street banks pay as little as 0.01% on easy access accounts at present, so clearly savers would be wise to consider alternative brands.
“Inflation sat at 1% a year ago and there were 91 deals that could outpace this; however, the majority of these standard savings accounts were fixed rate bonds. If savers locked into a one-year fixed bond this time a year ago and plan to get a new bond with the same term, Tandem Bank pays 1.31% on its one-year fixed bond, whereas a year ago the top deal was from OakNorth Bank at 1.21%. Challenger banks are making several improvements across the market and take market-leading positions across many different scenarios, so hopefully we will see even more improvements to rates in the weeks to come.
“To mitigate the impact of inflation, switching accounts for a more attractive return is essential and considering the more unfamiliar brands would be wise as they continue to inject competition across the savings spectrum. Signing up to rate alerts and newsletters to keep abreast of the changing top rate tables is a good idea, as savers may need to act swiftly to take advantage.”
*Data note: Please note that these savings product numbers only include deals that are available to UK residents (no notice/easy access, notice, fixed rate bonds, variable or fixed ISAs) and excludes regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for larger deposits.
