Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Inflation is still eroding savers’ cash in real terms, so it’s imperative they take time to ensure their account is offering a competitive return on their investment. The latest top rate deals for savers who only wish to lock their cash away over the shorter-term have improved since the last inflation announcement, and so have easy access accounts. If savers want to spread their cash across a flexible account and a fixed bond, then this will allow them to take advantage of higher returns but also retain access to a proportion of their cash in an emergency. However, depending on demand, some market-leading accounts could be pulled from sale, so quickness is key.
“There has been a positive uplift in savings rates overall, thanks to competition and back-to-back Bank of England base rate rises, but not every consumer may be seeing the benefits. Indeed, less than a third of the savings market pays above base rate, and there are even some easy access accounts paying just 1%. It is essential for savers to ditch and switch if their loyalty is not being rewarded. If savers are prepared to give notice to access their cash, then they could find better returns available on notice accounts, which pay over 4% on average. Notice accounts have flourished this year and may be a more suitable choice than a fixed rate bond.
“Not to go unnoticed, providers have been particularly active within the ISA market this month, with several improvements made across easy access, notice and fixed rate ISAs. Those savers who may be concerned about rising interest rates on their Personal Savings Allowance (PSA), may then be pleased to see ISAs improving, as these protect deposits under a tax-free wrapper. The PSA has been a useful allowance, but some savers could breach it, so an ISA may be worth considering. There are even deals that apply flexible ISA rules and some providers that allow investors to split their ISA allowance across different options within their product range. Splitting out ISAs is a way for savers to take advantage of fixed rates and the more flexible easy access ISA rates. Whichever account savers choose, it’s imperative they pick an account that suits their personal circumstances and take note of deals on offer from the more unfamiliar brands.”
*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, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Inflation is still eroding savers’ cash in real terms, so it’s imperative they take time to ensure their account is offering a competitive return on their investment. The latest top rate deals for savers who only wish to lock their cash away over the shorter-term have improved since the last inflation announcement, and so have easy access accounts. If savers want to spread their cash across a flexible account and a fixed bond, then this will allow them to take advantage of higher returns but also retain access to a proportion of their cash in an emergency. However, depending on demand, some market-leading accounts could be pulled from sale, so quickness is key.
“There has been a positive uplift in savings rates overall, thanks to competition and back-to-back Bank of England base rate rises, but not every consumer may be seeing the benefits. Indeed, less than a third of the savings market pays above base rate, and there are even some easy access accounts paying just 1%. It is essential for savers to ditch and switch if their loyalty is not being rewarded. If savers are prepared to give notice to access their cash, then they could find better returns available on notice accounts, which pay over 4% on average. Notice accounts have flourished this year and may be a more suitable choice than a fixed rate bond.
“Not to go unnoticed, providers have been particularly active within the ISA market this month, with several improvements made across easy access, notice and fixed rate ISAs. Those savers who may be concerned about rising interest rates on their Personal Savings Allowance (PSA), may then be pleased to see ISAs improving, as these protect deposits under a tax-free wrapper. The PSA has been a useful allowance, but some savers could breach it, so an ISA may be worth considering. There are even deals that apply flexible ISA rules and some providers that allow investors to split their ISA allowance across different options within their product range. Splitting out ISAs is a way for savers to take advantage of fixed rates and the more flexible easy access ISA rates. Whichever account savers choose, it’s imperative they pick an account that suits their personal circumstances and take note of deals on offer from the more unfamiliar brands.”
*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, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
