War on savings rates intensifies as providers fall on themselves to attract savers
Research by Moneyfacts.co.uk showed that the savings rate on easy-access accounts has risen to an average of 1.2 per cent compared to a year ago.
The rivalry in the area of easy access has heated up as top rates have risen following the Bank of England’s decision to raise the base rate.
The latest analysis shows that the average savings rate of the current top six easy-to-access accounts and easy-access ISAs pay more than double compared to a year ago.
The current top six easy-to-access accounts in the market now pay an average of 1.20 percent, up from 0.67 percent six months ago and 0.44 percent a year ago.
The top Easy Access deal today still pays 1.49 percent gross, up 0.99 percent from the top deal a year ago.
Meanwhile, the current top six easy-to-access ISAs in the market now pay an average of 0.96 per cent, up from 0.62 per cent six months ago and 0.42 per cent a year ago.
The top Easy Access ISA still pays 1.05 percent gross today, which is 0.60 percent higher than the top deal a year ago.
IUncovers the best deals currently on the market, with the help of Moneyfacts.co.uk.
more than savings and banking
Easy Access Savings Rates
one year ago
ICICI Bank UK – SuperServer Savings Account – 0.50%
Kent Reliance – Easy Access Account – Issue 45 – 0.45%
Yorkshire Building Society – Annual Access Account Issue 8 – 0.45%
Paragon Bank – Limited Edition Easy Access Account (issue 8) – 0.41%
Marcus by Goldman Sachs® – Online Savings Account – 0.40%
RCI Bank UK – Freedom Savings Account – 0.40%
six months ago
Aldermore – Double Access Account Issue 1 (0-2 per withdrawal) – 0.75%
Synergy Bank – Online Easy Access Account (Issue 43) – 0.70%
Shawbrook Bank – Easy Access – Points 28 – 0.67%
Paragon Bank – Triple Access Account (issue 5) (0-3 withdrawals per year) – 0.65%
Brown Shipley – Raisin UK – Easy Access Account – 0.61%
Tesco Bank – Internet Saver – 0.61%
today
Chase – The Chase Saver Account – 1.49%
Aldermore – Double Access Account Issue 1 (0-2 per withdrawal) – 1.25%
Zopa – Smart Saver – 1.19%
Tandem Bank – Instant Access Saver – 1.10%
Al Rayan Bank – Everyday Saver (Issue 2) 1.10%
Investec Bank Plc – Online Flexi Saver – 1.05%
Top Easy Access ISA Rates
one year ago
Kent Reliance – Cash ISA – Easy Access – Points 28 – 0.45%
Yorkshire Building Society – Annual Access Account ISA Issue 4 – 0.45%
Paragon Bank – Limited Edition Easy Access ISA (issue 6) – 0.41%
Marcus by Goldman Sachs® – Cash ISA – 0.40%
Yorkshire Building Society – Six Access e-Saver ISA Issue 5 – 0.40%
Charter Savings Bank – Easy Access Cash ISA – Issue 20 – 0.40%
six months ago
Shawbrook Bank – Easy Access Cash ISA – Issue 18 – 0.67%
Synergy Bank – Online ISA (Issue 17) – 0.65%
Paragon Bank – Triple Access Cash ISA (Issue 5) (0-3 per withdrawal) – 0.65%
Marcus – Cash ISA by Goldman Sachs® – 0.60%
Tesco Bank – Instant Access Cash ISA – 0.60%
Charter Savings Bank – Easy Access Cash ISA – Issue 24 – 0.56%
today
Synergy Bank – Online ISA (Issue 22) – 1.05%
Marcus – Cash ISA by Goldman Sachs® – 1.00%
Saga – Saga Cash ISA – 1.00%
Al Rayan Bank – Instant Access Cash ISA (Issue 3) – 1.00%
Shawbrook Bank – Easy Access Cash ISA – Issue 20 – 0.92%
State BS – Online ISA – 0.80%
(All based on top deals on £10,000 deposit. Excludes linked funded deals or eligibility restrictions. Source: Moneyfacts.co.uk,
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Savers who prefer to keep their cash in a flexible account may be pleased to see interest rates on easy-access accounts and easy-access ISAs rising. “
She said the top easy access rate today is the highest in the market since October 2019, and is nearly double the top rate available six months ago, and nearly three times higher than a year ago.
“Back-to-back Bank of England base rate hikes have influenced savings providers to reform variable rates over the past year, but it challenges competition from banks that dominate top rate tables. “
The average easy access rate has risen from 0.16 percent a year ago to 0.39 percent today, based on an investment of £10,000, an increase of 0.23 percent, but the average return for the top six easy access deals is now 0.76 percent higher. in May 2021.
However, Springall pointed out that there are still too many brands that are not delivering competitive returns.
“In fact, 83 percent of Easy Access accounts pay less than the current Bank of England base rate of 0.75 percent on a £10,000 investment.
“As has always been the case, there is no guarantee that savers will see any benefit from an increase in the base rate, and instead, they should be willing to shop around to find better rates.
“Easy Access ISA rates are also on the rise and this will be positive news for those looking to make use of their new tax-free ISA allowances.”
A recent ONS study showed that 43 percent of adults reported that they would not be able to save money in the next 12 months, the highest percentage since they were first asked in March 2020.
Ms Springle said: “Consumers’ expectations of savings have plummeted since the start of the year, which is not too surprising, and is in stark contrast to the boom in consumers putting money aside during the UK lockdown.
“However, some easily accessible cash could prove crucial to fall back on this year, so consumers can reduce their use of short-term loans to cover unexpected costs.”
