Savings Accounts

Choice of savings deals highest for 12 years - but savers issued warning

The number of savings accounts on the market has reached its highest level in 12 years, but savers have been urged to shop around.

There are 2,014 deals on the market this month as banks fight to attract savers.

NimbleFins previously reported how now is the best time for Britons to open a savings account with interest rates finally above inflation for the first time in 16 years.

But, as we also reported, £366bn is estimated to be earning just 1% or less in interest.

Savers are urged to compare rates to ensure they're getting the best deal, with loyalty often not paying when it comes to their bank account.

The Bank of England is thought to be close to reducing interest rates as early as August 1, so customers are being urged to act now.

Of the 2,014 savings deals now available, 571 are cash ISAs (tax-free savings accounts) according to Moneyfacts, which carried out the research.

It found the average easy-access savings account pays 3.11% interest, while 4.29% was the average for notice accounts.

NimbleFins' Best Savings Accounts guide, which is updated weekly, shows the best easy access rate on the market right now is Ulster Bank offering 5.2%.

The best notice savings account is Oak North offering 5.37% with a 95 day notice period. Meanwhile the best fixed rate account is Oxbury Bank offering 5.25% for six months, or My Community Bank and GB Bank at Raisin both offering the same 5.25% rate for a year.

The current base rate - set by the Bank of England - is 5.25% but analysts say this will be reduced at some point this year.

Moneyfacts’ Rachel Springall said customers would be "short-changed" if they did not review and switch accounts.

She added: “Over the past two years, the average rate on a live easy access account has surpassed the average closed rate, despite base rate rises from the Bank of England and numerous calls for the biggest banks to improve savings rates for existing customers.

“Savers must shake any apathy they have to move their pots, otherwise they will be left disappointed when their loyalty is not rewarded.”

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Helen Barnett

Helen is a journalist, editor and copywriter with 15 years' experience writing across print and digital publications. She previously edited the Daily Express website and has won awards as a reporter. Read more here.

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