Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“The savings market has seen reduced volatility over the past month, with many of the top rates remaining largely unchanged, which may be promising news to savers who have been slow to secure a competitive deal previously. A few new challenger banks have entered the scene, and their perks do not go unnoticed as they continue to dominate across ISA and non-ISA accounts.
“Volatile fixed bond rates have proved to be challenging for savers, entering and exiting the market rapidly in recent months. It is crucial savers act with haste if they wish to lock into an attractive deal, as base rate cuts are still forecasted this year, meaning providers may be quick to pass on rate reductions. There are very few existing deals paying around 5%, the majority being variable rates which are especially susceptible to rate changes. As a result, deals paying 5% could exit the market entirely. Two-year bonds have fared the worst since the previous inflation announcement, seeing a 0.23% reduction. Although savers coming out of a two-year bond will be seeing lower rates compared to 2022 the margin is less harsh compared to its one-year counterpart, showcasing the benefits of fixing for extended terms.
“Fixed rate ISAs have also been reduced in some areas, specifically one and two-year fixed rates. However, the ISA market has also seen more positive changes within the easy access sector which has seen an increase month-on-month.
“Overall, there is a much more positive outlook across most areas of the savings market in comparison to recent months, but it should not be assumed that this will remain the case. With major decisions still to be announced regarding the Budget and interest rates, it is as important as ever savers review their pots and consider securing fixed returns for longer.”
*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“The savings market has seen reduced volatility over the past month, with many of the top rates remaining largely unchanged, which may be promising news to savers who have been slow to secure a competitive deal previously. A few new challenger banks have entered the scene, and their perks do not go unnoticed as they continue to dominate across ISA and non-ISA accounts.
“Volatile fixed bond rates have proved to be challenging for savers, entering and exiting the market rapidly in recent months. It is crucial savers act with haste if they wish to lock into an attractive deal, as base rate cuts are still forecasted this year, meaning providers may be quick to pass on rate reductions. There are very few existing deals paying around 5%, the majority being variable rates which are especially susceptible to rate changes. As a result, deals paying 5% could exit the market entirely. Two-year bonds have fared the worst since the previous inflation announcement, seeing a 0.23% reduction. Although savers coming out of a two-year bond will be seeing lower rates compared to 2022 the margin is less harsh compared to its one-year counterpart, showcasing the benefits of fixing for extended terms.
“Fixed rate ISAs have also been reduced in some areas, specifically one and two-year fixed rates. However, the ISA market has also seen more positive changes within the easy access sector which has seen an increase month-on-month.
“Overall, there is a much more positive outlook across most areas of the savings market in comparison to recent months, but it should not be assumed that this will remain the case. With major decisions still to be announced regarding the Budget and interest rates, it is as important as ever savers review their pots and consider securing fixed returns for longer.”
*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
