Good news for savers as rates don’t fall for first time in months
Data from Moneyfacts showed average rates across both variable and fixed rate products either rose or remained unchanged month-on-month for the first time since October 2020.
It also revealed product choice rose between May and June. There are now 1,455 savings deals (including ISAs) on the market – volumes not seen since this January, when there were 1,437 deals.
Rachel Springall, finance Expert at Moneyfacts, said: “It is incredibly encouraging for savers to finally see stabilisation across the savings spectrum…This good news is further fuelled by a rise in product choice, bringing product volumes back to levels not seen since the start of this year.
“Clearly, there is more room for improvement, but it is positive to see some rates and level of choice move away from record lows.”
According to the data, the average notice rate, one-year fixed bond and longer-term fixed bond rates rose month-on-month, while the average easy access, easy access ISA, notice ISA and one-year and longer-term fixed ISA rates were unchanged month-on-month.
Disappointingly, popular easy access accounts are still paying record low rates with the average account offering a measly 0.16%, compared to 0.62% in June 2019.
Despite this, savers are still stashing their cash away in these type of account, perhaps for peace of mind, with £11.6bn in deposits made in April – or £51bn so far this year – according to the Bank of England.
Springall added: “The rejuvenation of the savings landscape is going to take time and providers still have the challenge of coping with savers’ cash to contend with and may still withdraw deals or tweak rates if they become saturated with deposits to deter investors.
“Savers would therefore be wise to keep on top of the changing market by signing up to rate alerts or newsletters and considering the more unfamiliar brands to find some of the best rates available. Switching is still vital and now is as good a time as any for a quick rate comparison now that stability is returning.”