Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“Savers will find that there has been a hive of activity within the savings market over the past month, albeit relatively mixed with reductions, increases, launches and withdrawals. As a result, there have been a handful of new providers offering the top rates, but average rates have remained steady.
“One-year fixed bonds have seen a slight uptick month-on-month, however, savers who are about to have their bond expire will find that the current market-leading rate no longer beats that of June 2023, which may be discouraging but to be expected with the growing potential of a base rate cut in the future. In comparison, those who locked into a two-year term back in 2022 will find that the current top rates pay over 2% more interest and those who fixed for even longer will be able to get significantly higher rates if they decide to fix again. As inflation hovers around its 2% target, it may be more rewarding for savers to fix for longer, as the longer their savings beat inflation the more cash they can earn in real terms. Meanwhile, variable savings rates have seen little movement but continue to be dominated by challenger banks despite further pushes for fairer rates required by the FCA’s Consumer Duty rules.
“There was some volatility within the ISA market coming into the new tax-year, with many providers making rate changes. Despite this, savers can still grab variable rate and a one-year fixed ISA which pays over 5%. In the longer-term the top rates have seen a boost which may be ideal for those who wish to utilise their personal allowances and receive a guaranteed return. However, as a whole, the top ISA rates continue to pay less than their savings counterparts.
“With several new providers entering the top rate tables it is crucial that savers review their nest egg to ensure their loyalty is being repaid and are willing to switch if more enticing deals appear elsewhere. In any case, savers should consider all relevant criteria and ensure the account is the correct choice for them.”
*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:
“Savers will find that there has been a hive of activity within the savings market over the past month, albeit relatively mixed with reductions, increases, launches and withdrawals. As a result, there have been a handful of new providers offering the top rates, but average rates have remained steady.
“One-year fixed bonds have seen a slight uptick month-on-month, however, savers who are about to have their bond expire will find that the current market-leading rate no longer beats that of June 2023, which may be discouraging but to be expected with the growing potential of a base rate cut in the future. In comparison, those who locked into a two-year term back in 2022 will find that the current top rates pay over 2% more interest and those who fixed for even longer will be able to get significantly higher rates if they decide to fix again. As inflation hovers around its 2% target, it may be more rewarding for savers to fix for longer, as the longer their savings beat inflation the more cash they can earn in real terms. Meanwhile, variable savings rates have seen little movement but continue to be dominated by challenger banks despite further pushes for fairer rates required by the FCA’s Consumer Duty rules.
“There was some volatility within the ISA market coming into the new tax-year, with many providers making rate changes. Despite this, savers can still grab variable rate and a one-year fixed ISA which pays over 5%. In the longer-term the top rates have seen a boost which may be ideal for those who wish to utilise their personal allowances and receive a guaranteed return. However, as a whole, the top ISA rates continue to pay less than their savings counterparts.
“With several new providers entering the top rate tables it is crucial that savers review their nest egg to ensure their loyalty is being repaid and are willing to switch if more enticing deals appear elsewhere. In any case, savers should consider all relevant criteria and ensure the account is the correct choice for them.”
*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.
