Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Savers will find much better rates to choose from compared to a few weeks ago, but such high inflation continues to erode the true spending power of savers' cash. However, high inflation must not discourage savers from reviewing their accounts and switching, as they could find a much better return now, particularly if they have a maturing fixed rate bond. It is true that over two years have now passed since any standard savings accounts could beat inflation, but it is worth remembering that in 2021 we also saw average savings rates fall to record lows. Despite high inflation, it’s imperative savers make every effort to secure a better deal and act with pace to take advantage of a top rate.
“Easy access savings accounts have continued to flourish this month, with many challenger banks and building societies improving their offers, as we witness both competition and influences from the Bank of England base rate rises. Savers can now secure a top easy access rate of around 4% gross, which is more than double the top return on offer a year ago. However, it’s vital consumers carefully check the terms and conditions of these accounts, as some can restrict withdrawals. There has also been heated competition across fixed rate bonds, with notable rises to one-year fixed deals. Savers will find the top one-year fixed bond pays more than double the equivalent top deal this time a year ago. Challenger banks currently offer some of the top returns, and the market remains a fast-paced environment, with some raising rates more than once in a week. Deals offered by a challenger bank can change quickly when they meet their funding targets, so there is no guarantee a top rate will be around for long.
“Some savers may only be prepared to invest their cash over the shorter-term or even in a flexible account, but there are still notice accounts and longer-term fixed bonds, as well as their ISA equivalents, to consider too. It is expected more base rate rises are imminent, so it’s worthwhile for savers to prepare themselves and keep abreast of the latest deals to hit the market.”
*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude 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 other levels of deposit.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Savers will find much better rates to choose from compared to a few weeks ago, but such high inflation continues to erode the true spending power of savers' cash. However, high inflation must not discourage savers from reviewing their accounts and switching, as they could find a much better return now, particularly if they have a maturing fixed rate bond. It is true that over two years have now passed since any standard savings accounts could beat inflation, but it is worth remembering that in 2021 we also saw average savings rates fall to record lows. Despite high inflation, it’s imperative savers make every effort to secure a better deal and act with pace to take advantage of a top rate.
“Easy access savings accounts have continued to flourish this month, with many challenger banks and building societies improving their offers, as we witness both competition and influences from the Bank of England base rate rises. Savers can now secure a top easy access rate of around 4% gross, which is more than double the top return on offer a year ago. However, it’s vital consumers carefully check the terms and conditions of these accounts, as some can restrict withdrawals. There has also been heated competition across fixed rate bonds, with notable rises to one-year fixed deals. Savers will find the top one-year fixed bond pays more than double the equivalent top deal this time a year ago. Challenger banks currently offer some of the top returns, and the market remains a fast-paced environment, with some raising rates more than once in a week. Deals offered by a challenger bank can change quickly when they meet their funding targets, so there is no guarantee a top rate will be around for long.
“Some savers may only be prepared to invest their cash over the shorter-term or even in a flexible account, but there are still notice accounts and longer-term fixed bonds, as well as their ISA equivalents, to consider too. It is expected more base rate rises are imminent, so it’s worthwhile for savers to prepare themselves and keep abreast of the latest deals to hit the market.”
*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude 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 other levels of deposit.
